By Rohin Tagra, Founder & CEO of Azimuth
Since the financial crisis, compliance costs have increased by over 60% for retail and corporate banks, according to Deloitte, and nine out of 10 compliance executives believe costs will continue to rise.
Meanwhile, the cost of non-compliance has never been higher. As examples, the DOJ recently announced a $31 million redlining settlement with City National Bank – the largest settlement in department history. Last year, Trident Mortgage Company was ordered to pay over $22 million and Lakeland Bank paid $13 million, also both for redlining.
These settlements are a result of the Justice Department’s 2021 Combating Redlining Initiative, which promised increased oversight. But this is only part of regulators’ commitment to increased scrutiny.
To manage rising compliance expectations, most financial institutions expect the cost of compliance to increase as much as 30% over the next two years, yet only six out of ten expect an increase in operational funding.
In this Bank Business News article, Rohin Tagra discusses a solution that won’t break the bank: full-population testing.
Read the full article here!