Regulation driving technology investments

Financial institutions across the world are increasingly turning to technology to manage a growing number of digital threats and regulatory requirements.


Tuesday 3

Regulation driving technology investments

That is according to a global survey of compliance officers by consultancy firm Accenture, which finds that technology transformation is the top spending priority for 2018, cited by a quarter of respondents.


A whopping 89% intend to increase investments over the next two years, with cyber security ranked the top compliance risk, followed by data protection and privacy.


This is thought to reflect a growing concern around the introduction of General Data Protection Regulation next month, with firms potentially facing fines of up to 4% of annual revenues and criminal penalties.


“Time has run out for compliance departments that want to take a more watchful, cautious stance toward innovation,” Accenture senior managing director, Steve Culp, said.


“As financial institutions manage more digital threats and an evolving regulatory landscape, they must act quickly and embrace a new mindset driven by innovation across technology, talent and operating models.”


The survey involved questioning 150 compliance officers at insurance, banking and capital markets institutions across 13 countries in Europe, North America, South America and the Asia-Pacific.


It was found that three-quarters believe their organisation has a skills gap between what they have and what is needed to comply with regulation and digital threats using data and analytics.


One-third of respondents cited data quality issues as a significant barrier for transforming compliance over the next three years, with Accenture urging firms to address this to ensure returns on technology investments.


“Strategic investments in enterprise-wide regulatory technology and intelligent automation must be complemented by the right talent mix,” Accenture managing director, Samantha Regan, said.


“If compliance professionals don’t understand the ecosystem of risks they face or fail to obtain strategic insights from the data gathered, they can expect limited returns on their investments.”


Most popular

  1. Cryptocurrency market on ‘the brink of implosion’

    Investors should brace for an imminent collapse in the entire cryptocurrency market following a steep decline in the value of Bitcoin over the last year, a new study from Juniper Research has warned.


    Friday 12

    12 October 2018

  2. Insurers and banks stop eight in ten cyber attacks

    Insurance companies and banks have successfully prevented eight in ten cyber attacks on their organisations this year, up from approximately two in three over 2017.


    Tuesday 1

    02 October 2018

  3. Two-thirds of large firms at least considering blockchain

    Nearly two-thirds of large businesses with over 10,000 staff are looking to deploy new blockchain projects, up from around half last year, a new survey has found.

    Tuesday 18

    18 September 2018

White paper

  • Quarterly InsurTech Briefing Q1 2017

    Why InsurTech? A Pressured Insurance Value Chain

    By Andrew Sagon, Andrew Johnston and Matthew Wong

    InsurTech is a burgeoning phenomenon that is modernising the insurance industry. It is disrupting the traditional value chain whereby insurers offer loss protection, and shifting the emphasis to risk mitigation. Incumbents face disintermediation as investors in search of higher yields pour money into insurance-linked instruments in the capital markets. And entrepreneurial businesses are targeting friction costs and inefficiencies within every aspect of the traditional value chain.



  • Insurance big data – float like a butterfly, sting like a bee

    Nimbleness and agility will unlock potential

    By Elinor Friedman, Andrew Harley and Klayton Southwood

    Recent Willis Towers Watson surveys in the U.S. have shown that P&C and life insurers in developed markets are taking seriously the potential of big data and predictive analytics to improve their businesses. Nimbleness and agility, rather than brute force, are likely to be key to realizing that potential.

    Download PDF

  • The new era of insurance analytics

    Driven by technology, toolkits and talent

    By Claudine Modlin and Graham Wright

    Advanced analytics is helping some insurers offer innovative products and solutions. What do insurers need to know about the changing nature of analytics and whether it is worth the investment? Claudine Modlin and Graham Wright discuss technology, toolkits and talent — topics that may help you decide.

    Download PDF

  • How can we manage the dynamic nature of cyber-risk?

    Risk transfer is part of a comprehensive solution

    By Adeola Adele, Patrick Kulesa, Kevin Madigan and Alice Underwood

    Given the dynamic nature of cyber-risk, taking a multidimensional approach that integrates board governance, technology solutions, behavioral change and risk transfer solutions can help reduce risk to a manageable level.

    Whitepaper Form