The clear majority of surveillance leaders at 20 of the world’s leading financial institutions expect the mandate of the front office controls function to continue to expand. That’s one of the findings taken from the largest and most comprehensive surveys of front office controls organizations, conducted by 1LoD and co-sponsored by Digital Reasoning
The full report will be published in mid-July. However, we’re delighted to be able to share a preview with those receiving the content that forms part of our Wisdom & Wine series. Below are the results to the first of 30 questions covered the survey, with commentary provided by 1LoD.
“Looking into the next 12 months, 90% of respondents expect the mandate of their front office controls function to continue to expand. Yet it is no secret that recruitment in banks is not happening with the same intensity as it was historically. Therefore, we see this as a clear indicator that whilst banks may not have the appetite to keep adding headcount, the desire to take ownership of risks into the first line continues unabated. Indeed 95% of respondents to our survey expect to make further investment in e-comms surveillance technology over the next 24 months, with 38% describing their investment as significant.
“Of the 90% who expect the mandate of their front office controls function to continue to expand, we find 75% expect a “small expansion of the mandate”. Digging deeper into that 75%, it is interesting to note that 20% are tier 1 banks and 55% are tier 2 banks. This is a clear illustration of the build-out phase that most of the smaller banks have embarked on both geographically and internally across businesses and divisions.”
The 1LoD Global Benchmarking Survey & Annual Report 2018 is a seminal study of the front office control sector. It offers detailed insights based on the results of a 30-question survey answered by twenty of the world’s largest financial institutions, with in-depth commentary contributed by regulators, industry practitioners, business heads, an non-executive director, technology experts, a military leader, and consultants.
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