Eleanor Dempsey, Director of Strategy, Innovation & Transformation, Auxilion
Regulatory compliance top three challenges facing firms
OVER 70 per cent of senior managers in financial services see regulatory compliance as one of the top three challenges facing their business this year.
The survey from Citywest-based IT provider Auxilion also found that a quarter are not confident their organisation would comply with Corporate Sustainability Reporting Directive (CSRD) requirements.
Meanwhile, a similar proportion don’t believe current regulations around AI in the financial industry are sufficient, while two thirds believe current regulations around AI in the financial industry are inhibiting its use.
The study, conducted by Censuswide and involving 200 senior managers working in financial services in Ireland, found that 29 per cent of organisations are not ready to handle more stringent regulations over the next five years.
In terms of wider Environmental, Social & Governance (ESG) considerations, two-thirds believe it has a positive impact on financial performance.
The leading factors driving financial services firms to adopt ESG are investor or board demand (49 per cent), reputation and branding (48 per cent), and risk mitigation (44 per cent).
Eleanor Dempsey, Director of Strategy, Innovation & Transformation, Auxilion,said: “There are no loopholes or shortcuts when it comes to addressing governance and compliance.
‘Companies – especially those in highly regulated sectors including financial services – must step up their strategies and investments in this area. As well as training people, that means deploying technologies that support ESG efforts.
“Failing to meet such regulatory requirements or embracing ESG not only leaves organisations at risk of financial and reputational repercussions, but it could also have a negative impact on investor and customer relationships. In turn, the performance, growth and future of their business could be in jeopardy.”
