According to a report from digital banking transaction security developer OneSpan, half of financial institutions identify regulatory compliance as a serious roadblock to digital transformation.
OneSpan’s second annual Global Financial Regulations Report was published in conjunction with research into how the changing regulatory landscape is impacting the banking community.
The research, conducted in partnership with business information firm Arizent, surveyed more than 150 senior banking leaders representing global financial institutions with assets up to $100bn.
Of those surveyed, 53% of respondents said reducing or preventing cyber-attacks was a key compliance challenge. Other top compliance challenges identified were safeguarding sensitive data (47%) and keeping pace with changes in consumer privacy laws and industry regulations (41%).
Almost half of banks are putting digital remote identity verification and biometrics in place to comply with industry regulations. A further 41% are prioritising emerging technologies like remote online notarisation.
The research also suggested bank leaders are generally optimistic about crypto regulations, with 67% of financial services leaders agreeing that crypto regulations make banks’ participation in the market more attractive.
In addition to the research, the second annual Global Financial Regulation Report outlines major developments in the regulatory landscape in 54 jurisdictions worldwide. It delves into country-by-country analysis of CBDCs, open banking, artificial intelligence, digital identity frameworks, e-signatures and remote online notarisation, and data privacy.
Despite the security and regulatory challenges institutions faced in 2021, 84% of banking leaders are taking steps to prepare for cutting-edge initiatives like Central Bank Digital Currency (CBDC) over the coming year. In addition, half of banks are planning to implement mobile app shielding technologies to secure mobile apps in anticipation of upcoming CBDC initiatives.
Steven Worth, OneSpan interim president and CEO, said the “new digital banking age”, that was in part fuelled by the pandemic, has left regulators with the task of creating safe regulatory frameworks without stifling innovation.
“However, our research found that half of global senior banking leaders have hit hurdles because of regulatory compliance. OneSpan’s Global Financial Regulations Report will arm banks and financial institutions with information they need to both be compliant and sustain their competitive position.”
The full report can be accessed here.
Copyright © 2021 FinTech Global
Copyright © 2018 RegTech Analyst
