Cedar on Banking
Cedar on Banking provides strategic perspectives on the business of banking in a changing global environment. The channel covers operating models, regulatory dynamics, risk, growth strategies, and transformation initiatives across retail, corporate, and wholesale banking. Each episode offers practical insights to help banks strengthen performance, adapt to disruption, and sustain long-term value.
Cedar on Banking
Three imperatives to manage the cost of compliance
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Rising regulatory scrutiny has made compliance costs a major challenge for banks, with global fines exceeding €211 billion since the financial crisis and regulations continuing to expand. Banks must balance shareholder expectations with stricter compliance, often while facing competition from less-regulated players. To manage costs proactively, three imperatives stand out. First, compliance should be embedded into day-to-day processes rather than treated as a siloed function, reducing duplication and staffing overheads. Second, banks must effectively manage and leverage data: robust data architecture, granular reporting, and RegTech tools enable faster, more accurate compliance, while data masking protects privacy and reputation. Third, advanced use of data, AI, and analytics can transform compliance into a competitive advantage by automating low-value tasks, improving governance, and freeing resources for meaningful risk mitigation. Banks that adopt a proactive, technology-enabled compliance approach can reduce surprises, strengthen resilience, and ultimately enhance enterprise value.