The State of Financial Services Compliance

arrow_greenAnnual Compliance Health Check Report

SteelEye 2024 Annual Compliance Health Check Report


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financial services compliance

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Surveying 400+ senior compliance decision-makers


Executive Summary

SteelEye's annual compliance health check report provides comprehensive insights into the challenges and trends shaping the compliance landscape. 

The 2024 report underscores the escalating pressures facing compliance teams, driven by regulatory crackdowns and macroeconomic challenges. Despite the continued rise in regulatory expectations, expenditure on compliance operations has decreased compared to 2023, as has investment in RegTech. 

While financial firms express intentions to allocate more resources to compliance, the reality reflects scrapped projects, constrained budgets, and compliance burnout. This raises concerns about the effectiveness of current compliance measures and the ability of firms to adequately address regulatory demands.

Do you expect regulators to increase the value of fines for record keeping breaches in 2024?


The report highlights the
evolving nature of compliance challenges
and the need for firms to leverage technology to enhance compliance effectiveness

Key highlights:

Rising Compliance Pressures:

Persistent macroeconomic challenges, coupled with geopolitical tensions like the Middle East conflict, have impacted compliance operations and budgets.

Regulatory Scrutiny on Off-Channel Comms:

Regulators maintain intense scrutiny over off-channel communications, prompting firms to implement monitoring of new channels.

Compliance Budgets Under Pressure:

Compliance expenditure continues to rise but at a decelerated pace, constituting a smaller portion of firms' total expenditure, and firms have spent less on RegTech amidst heightened regulatory scrutiny and economic challenges.

Investment in RegTech:

While investment in RegTech is set to rise, there's a shift towards moderate budgets, indicating nuanced shifts in attitudes influenced by recent developments.

Adoption of AI in Compliance:

There's a significant increase in the adoption of AI capabilities in compliance processes, with firms experiencing improvements from implementing AI.

Future Focus on Compliance:

Despite challenges, there is optimism for the future, with firms intending to intensify efforts and allocate greater resources to compliance, particularly in communication surveillance.


of firms have streamlined compliance teams amidst the macroeconomic events of the past few years.


of firms have implemented more stringent compliance controls in response to the banking failures of 2023.


of firms predict the value of eComms record keeping fines to rise.


of firms have implemented monitoring of relevant eComms channels in response to increased fines related to communications record keeping.


of firms grapple with managing the record keeping, monitoring, and controls of electric communications, and struggle to keep up with regulatory change.


of respondents believe that technological advancements will play a crucial role in enabling financial firms to meet stricter regulations in the future.


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