Nearly half (44 percent) of financial services executives in the Asia Pacific (APAC) region said their companies plan to invest more on risk and regulatory compliance solutions this year.
This is fuelled by their increased concerns over their organisation's ability to comply with upcoming regulations (69 percent).
These findings were the highlight of the recent survey conducted by data management and reporting technology provider, AxiomSL, on 132 risk and regulatory executives from the financial services sector in APAC and North America.
Respondents also said the biggest regulatory challenges they expect in the next three years are allocating the necessary resources and capital (66 percent), improving data aggregation and reporting (59 percent), and adapting to upcoming regulatory changes (57 percent).
"It's difficult to predict with complete accuracy which new regulations will take effect, and when," said Peter Tierney, CEO of AxiomSL's in APAC. "What is clear is that firms need to be more forward-looking and strategic, not only preparing for regulatory changes on the immediate horizon, but also investing in technology that can be leveraged and optimised to operate in a range of different regulatory climates."
To prepare for these, APAC respondents said they are planning to invest in data management (61 percent) and reporting (67 percent) solutions.
The study also found that more than half of the polled executives in APAC (53 percent) doubt the accuracy of data in their organisation, which may be caused by inadequate data lineage and process governance (31 percent). "Firms thus need to adopt a strategic posture and be able to reuse and leverage data and processes to transition their business into future success," said Alexander Tsigutkin, CEO of AxiomSL.
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