According to a recent study by AutoRek, a fintech company that is spearheading the automation of financial data, most financial companies believe their internal systems are not sufficiently advanced to handle any future regulatory changes.


A great majority (71%) of the 500 banks surveyed in the US and the UK concur that their financial oversight procedures are not strong or adaptable enough to handle increased regulatory change or inspection.

The results are concerning for financial institutions at this moment since a number of important regulations, including EMIR Refit and modifications to MiFID II, are set to take impact in the upcoming months.

Institutions have serious concerns about the quality of their data in addition to the problems that corporations have reported with their financial control procedures. This is particularly valid when it comes to fulfilling regulatory reporting obligations.

Significantly, 70% of those surveyed concur that their data is not transparent or flexible enough to be used for regulatory reporting. Furthermore, 73% of businesses report that it is difficult to obtain all the information needed to finish internal and external audits.

Despite the apparent lack of versatility in data and financial control processes, the findings also demonstrate that the majority of businesses continue to use out-of-date methods for their financial operations.

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By GlobalData

Moreover, 78% of respondents say their business relies excessively on manual chores and spreadsheets to carry out the reconciliation control procedure.

However, the main obstacle that corporations reported while delivering on digitisation plans is integration hurdles, which relate to the issues that develop when companies try to integrate different data systems and processes.

In conclusion, it is not a surprise that many businesses are presumably planning to invest in cloud infrastructure (29%), process automation (30%), and reporting solutions (26%), to streamline their back-office operations during the next 12 to 18 months.

Murray Campbell, regulatory consultant at AutoRek, commented: “Our latest banking industry survey shows that firms are working hard to modernise and adapt to growing competition and cost pressures, but many are still beset by inefficiencies. Optimising core back and middle-office functions must be a top priority for banks to streamline operations, get in control of their data and achieve regulatory compliance. We look forward to completing the survey in 2025 to see how respondents have progressed.”