From loss of reputation to customer retention rates
In this infographic, we look at the cost of non-compliance to finance organizations and why many are looking at automation as a solution.
It isn’t straight forward
The fines for non-compliance are hefty. But, by no-means is that all you need to think about. From risks in loss of reputation to reduced customer retention, the true cost of regulation isn’t as straight forward as the risk from fines.
$26 Billion worth of fines handed to finance institutions for non-compliance since 2008
$150 million spent a year on compliance by financial institutions worth $10 Billion or more.
Loss of reputation
If a finance institutions is caught up in dealing with fraudsters, scams, or people with intent to harm, it can damage the institution’s reputation. this may have limited risk , but with the brand reputation of the top ten banks topping $45 billion — is it worth it?
Brand Value of the top 10 banks worldwide is the $45 Billion
Many banks are investing heavily. For instance, JP Morgan have bolstered regulation staff by 5,000 and have spent an extra $4 billion.
The ballooning cost of regulation
The regulations for AML and KYC aren’t straight forward. They require significant manual effort and often require compliance employees to interpret it. As you might imagine, as more regulations are added the cost for finance institutions is ballooning.
85% of institutions are planning to increase spending in AML in the next 24 months.
Customer Retention Rates
Creating the right customer experience brings people back to your business. However, the majority of finance products require multiple touch points and usually falls short of customer expectations. This is especially challenging whilst trying to stay within regulatory requirements.
35% of banks have lost customers due to poor customer experience in compliance
$10 Billion in lost revenue for institutions from poor customer experience
With all of these challenges, it’s no wonder that finance organizations are looking to intelligent automation to reduce costs.
Download our latest Ebook below to learn more about how Intelligent Automation can help you
KYC and AML: Your essential guide to Intelligent Automation in Finance Compliance