Compliance as a Driver of Banking Performance
Insights from the Temenos Value Benchmark
It’s clear that compliance should no longer be perceived as a mere regulatory cost, but as an opportunity to reduce operational and reputational risk, enhance the customer experience and lead to high overall digitization, ultimately benefitting the banking performance.
This short paper, illustrated by Temenos Value Benchmark observations and data, demonstrates how targeted investments in compliance can have an overall positive impact on the bank’s financial performance.
Key Findings
- Total average compliance spend can be equivalent to 6.7% of revenues, 69.5% of which are attributable to FTEs
- On average only 32.4% of banks’ IT budget is dedicated to growth and innovation, the rest is directed towards maintenance and the cost of “keeping the lights on”
- The more digitalized a bank is, the higher the compliance staff efficiency
- Maintaining an efficient compliance function contributes positively to the bank’s financial performance
- Compliance is an opportunity to reduce operational and reputation risk, enhance the customer experience, and lead to high overall digitization
Authors
Adam Gable – Product Director – Financial Crime, Treasury & Risk
Adam Gable is responsible for the product planning and execution of Temenos’ Financial Crime, Treasury and Financial Risk Management solutions. With a background in development and treasury, Adam worked for a number of international banks before crossing the fence to the software industry where he has gained a track-record of building and taking to market leading Universal and specialist banking systems. His overarching focus being to help banks mitigate financial and reputational risk, reduce overheads and better serve their customers.
Adam has 20+ years of experience in the banking and banking software industry.
Clément Vivier – Strategic Advisor Europe
Clément has joined Temenos from Accenture France, where he worked as a Manager in the Financial Services division, selling and delivering Strategy and Consulting work to Capital Markets clients (i.e. CIBs, Asset & Wealth Managers). He is working on strategic deals and senior client and prospect conversations through the execution and scaling of the Temenos Value Benchmark program and Value Selling across the region.
Clément is a CFA Charterholder and is an INSEAD, NEOMA and KEDGE alumni.