Nasdaq Inc (NDAQ, Financial) has released its ninth Annual Global Compliance Survey, highlighting the evolving trends and challenges in compliance and surveillance within the financial services industry. The survey, conducted with 94 compliance professionals from various sectors, underscores the increasing influence of advanced technologies and AI on compliance processes. Released on December 3, 2024, the survey reveals a significant shift towards data-driven approaches and the growing importance of data scientists in compliance teams.
Positive Aspects
- 35% of respondents identified AI and advanced technologies as key drivers of compliance changes, up from 9% last year.
- Firms are investing in data quality, cloud integration, and cross-product surveillance tools.
- Compliance teams maintain a strong influence in business decisions, with over 75% of respondents affirming their strategic role.
Negative Aspects
- False positives remain a significant challenge, with 90% of compliance teams finding it difficult to reduce them.
- There is a need for cohesive data, analytics, and analysis strategies to effectively deploy AI and algorithmic processes.
Financial Analyst Perspective
From a financial analyst's viewpoint, Nasdaq Inc's survey highlights a strategic pivot towards leveraging AI and advanced technologies to enhance compliance processes. This shift is likely to drive increased investment in regulatory technology platforms and skilled personnel, potentially leading to improved efficiency and reduced operational risks. The focus on data quality and integration suggests a long-term commitment to building robust compliance frameworks, which could enhance Nasdaq's competitive edge in the financial services sector.
Market Research Analyst Perspective
As a market research analyst, the survey results indicate a broader industry trend towards digital transformation in compliance. The growing demand for data scientists and advanced analytics tools reflects a shift in how financial institutions approach regulatory challenges. This trend is expected to continue as firms seek to harness technology for strategic advantage, positioning Nasdaq as a key player in providing the necessary infrastructure and expertise to support these efforts.
FAQ
Q: What percentage of respondents identified AI as a key driver of compliance changes?
A: 35% of respondents identified AI and advanced technologies as key drivers of compliance changes.
Q: What are the main areas of investment for firms in the next 12 to 24 months?
A: Firms are focusing on improving data quality, integrating data sources and the cloud, and developing cross-product surveillance tools.
Q: How do compliance teams view their role in business decisions?
A: Over 75% of respondents agree that compliance teams have a significant influence in business decisions, maintaining a strategic role in risk management and corporate governance.
Read the original press release here.
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