Keeping pace with—and effectively managing regulatory change—tops the list of U.S. bank and credit union concerns, across all asset sizes and types, according to Wolters Kluwer Compliance Solutions' just-released annual Regulatory & Risk Management Indicator survey.
This marks the survey’s tenth year, and the second consecutive year in which managing regulatory change was cited by respondents as the leading risk and regulatory concern for their organizations. According to the company’s press release, regulatory enforcements and fines, however, dropped sharply compared to 2021 levels.
“Unquestionably, this year’s survey findings point to the critical role that a robust regulatory change management program—particularly one featuring an up-to-date regulatory library—plays in helping ensure compliance and addressing risk across a lending organization,” said Timothy R. Burniston, who is Senior Advisor for Regulatory Strategy with Wolters Kluwer Compliance Solutions.
Another notable area of increasing concern the survey pointed to were concerns about the continuing use of manual processes and use of spreadsheets in managing risk and regulatory compliance functions. Eighty-five percent of respondents were “sometimes or often” concerned by manual processes’ continued prevalence in their organizations, versus only nine percent who indicated their institutions rarely used manual processes.
Wolters Kluwer’s survey also explores lenders’ use of digital technologies to support their businesses. Nearly threequarters of respondents indicated they have made some progress with digitizing their lending capabilities, although only 28% indicated their institutions have made significant progress or are fully digitized.