This month, IBS Intelligence published a 2023 lookahead, sharing the top predicted trends that this year has in store for us.
As the world continues to move in different directions, banks must strive to remain ahead of the curve, bolstering their short-term stability and taking advantage of long-term possibilities for growth and profitability. One of the predictions highlighted in the article is the rise of regulatory burden.
Gudmundur Kristjansson (GK), Founder & CEO at Lucinity says: "What we've seen play out - a major invasion of Ukraine, a financial crisis, and crypto's reputation in tatters - only means one thing: more regulation."
During times of recession, financial institutions may often downsize compliance measures to save money, but this may lead to hefty fines in the future when regulations are tightened. Banks must take heed of their past miscalculations and invest in stronger compliance systems. Not only is their reputation and stock value at risk, but the stability of the entire financial system could be compromised.
As we go into 2023, compliance must be seen as a business partner that enables growth rather than a cost center to be cut during unfavorable times.
Read the full article in the IBS Intelligence journal and check out Lucinity's 7 compliance and financial crime trends here.