19 June 2025, London/New York – Global financial institutions have increased their spend on compliance ahead of an anticipated rise in regulatory fines, according to the 2025 Annual Compliance Health Check Report from SteelEye – the firm behind the pioneering integrated communications and trade surveillance solution.
The survey of 300 senior compliance decision makers across the US, UK, APAC, and Europe found that a vast majority (77%) of firms have raised their expenditure over the last year. This could be linked to the finding that globally, 67% predict the number of fines for electronic communications record breaches will rise this year, with 71% anticipating the value of these fines to also surge. Reputational damage was cited as the greatest deterrent against non-compliance.
Half of the firms that raised compliance spending have directed the majority of their funds towards new technology to support compliance processes, while just over a quarter (27%) have allocated the bulk of their budget to hiring and retaining talent. More than two-thirds (68%) have already implemented artificial intelligence (AI) into their surveillance process, and an overwhelming 96% of these reported measurable improvements in their compliance outcomes.
Microsoft Teams (53%) and email (48%) continue to be the two most monitored channels, while WhatsApp (42%) has moved above Zoom to join them on the podium. This was partially driven by a significant rise in UK firms monitoring WhatsApp, jumping by 15% to 53% in a single year.
Mobile voice coverage remains at a worryingly low level, with just 16% of firms surveilling this channel. Another significant blind spot was language coverage. 20% of firms admitted they only monitor communications in a single language, and none of the firms were able to monitor across more than three languages. In a global financial marketplace, this presents a real risk.
You said that your firm’s compliance expenditure has increased in the
last year, in your opinion, what do you think is the main factor
driving up these compliance costs?
Commenting on the findings, Matt Smith, CEO of SteelEye said, “We saw financial institutions prioritise compliance investment in 2024, driven by a desire to implement AI into surveillance processes. AI is no longer an aspiration for compliance teams; it’s a competitive necessity. Firms that fail to adopt intelligent surveillance tools will struggle to keep pace with increasingly complex communication channels and regulatory scrutiny.
“We are surprised that monitoring of mobile voice communications remains so low, especially considering the prevalence of asset classes that are predominantly traded over-the-counter (OTC) and therefore require telephone negotiation. Multilingual surveillance is another clear area where current systems are falling short, and regulators are unlikely to accept ‘lost in translation’ as a defence.”
About the research
The research was conducted by Censuswide on behalf of SteelEye, with 300 Senior Compliance Decision Makers within Financial Services firms across Australia, Singapore, Hong Kong, France, Germany, Netherlands, UK and USA.
About SteelEye
SteelEye is the pioneering integrated trade and communications surveillance solution. We empower financial firms with the data-driven tools and complete insights they need to focus on what matters, all from a single platform.
State-of-the-art algorithms and intelligent alerts proactively detect market manipulation and compliance breaches, while our holistic data model – which combines communications, trades, orders, news, and market data – provides intelligent insights and deep analytics. Founded in 2017, SteelEye has offices in the UK, North America, Portugal, and India, and is also incorporated in Singapore.
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