Ever wonder how your peers at banks and credit unions are navigating the complex world of governance, risk, and compliance (GRC)? Curious about the latest risk management and compliance industry trends?
Ncontracts and CBANC teamed up to survey involving 147 professionals from banks and credit unions just like yours. We've delved into the nitty-gritty of GRC strategies, dissecting everything from staffing roles and examiner concerns to the satisfaction levels with different GRC approaches and key factors that affect the evaluation and choice of fintech partnerships.
The resulting survey report, What Does GRC Look Like at Financial Institutions Today?, is a quick hit into the heart of GRC management, giving you insights you can use to improve your strategic decision-making process leveraging your institution's risk management and compliance efforts.
Download a free copy of our survey report, The State of GRC: How Financial Institutions Are Navigating Today’s Risk and Compliance Challenges
Here’s a few highlights:
GRC Trends: Which institutions are most satisfied with their GRC approach?
Institutions using a single vendor suite for GRC reported the highest satisfaction levels, with 30% claiming a full understanding of their risk and compliance stature. In comparison, only 10.3% and 13.3% of those using manual processes and a variety of solutions from different vendors reported being very satisfied, respectively.
This suggests that adopting a single vendor suite for GRC can lead to more efficient and streamlined operations, ultimately improving overall satisfaction and understanding of risk and compliance positions.
Related: Culture and Conduct for FIs: Ncontracts and RMA Discuss Survey Results
Compliance trends: The relationship between examiner scrutiny and manual processes
Financial institutions relying on manual GRC processes were 16.8% more likely to experience examiner questions and concerns about compliance management.
As regulatory environments become more complex, institutions using manual processes may face increased scrutiny and challenges in ensuring compliance. In contrast, adopting more sophisticated GRC solutions can mitigate the risk of examiner concerns and foster a stronger compliance position.
Related: How Compliance Officers Really Feel about the Industry (2021 Survey Results)
Risk management trends: Evaluating fintech partnerships
Over half of the surveyed banks and credit unions (52.88%) plan to evaluate fintech partnerships in the next one to two years. Factors such as compliance management, cybersecurity, return on investment, and reputation are critical when evaluating these partnerships. More than 80% of financial institutions reported that the fintechs they've evaluated have a solid understanding of regulatory requirements, third-party vendor management, and cybersecurity, among other key factors. This indicates the growing importance of fintech partnerships and the need for a comprehensive evaluation process to ensure compatibility and compliance.
The survey results underline the importance of moving away from manual GRC processes in favor of more automated and integrated solutions. By adopting a single vendor suite for GRC, financial institutions can streamline operations, enhance satisfaction levels, and gain a robust understanding of their risk and compliance positions. As the regulatory environment continues to evolve, banks and credit unions that take a proactive approach to GRC will be better positioned to succeed and maintain a competitive edge in the market.
To learn more about the survey results and gain a deeper understanding of GRC trends in the financial sector, download the full report here.
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