23 May More compliance experts needed, says new industry report
Wednesday, 30th January 2019. Sydney, Australia. Opportunities for experts in Australia’s compliance and risk sector has risen sharply, according to findings from the latest Compliance Index, an industry initiative conducted by TAS, a leading technology partner for Australia’s financial services sector.
More than 60 per cent of executives surveyed in the annual Index said they are committing at least up to 5 additional resources to focus purely on compliance management in the year ahead. An increase of almost 39 per cent in the last 12 months.
These findings are validated by research conducted by SEEK, which found the number of job advertisements for risk and compliance workers have jumped by nearly 50% over the past year. Currently 13.5% of Banking and Finance roles on SEEK are in the areas of compliance and risk¹.
Shane Baker, CEO of TAS, said “This increased focus on compliance experts is not surprising and is more than likely due to the findings of Australia’s Banking Royal Commission.
The Royal Commission has highlighted the sector’s lack of transparency and non-compliance. There is increased scrutiny on financial institutions, and companies have been forced to prioritise compliance and risk.
This creates demand for highly skilled compliance experts who bring a fresh perspective and innovative ideas to organisations”.
However, despite the increased focus on compliance and risk, there are still close to 40 per cent of companies who are not recruiting internal resources to assist with improving company processes.
Mr Baker says, “While at first glance this was a concerning finding, it suggests that organisations are also considering alternative innovative options for bolstering capability other than simply hiring.
This equally opens up opportunities for other compliance, governance and regulatory experts and specialists as organisations look at engaging third parties to support their compliance efforts.”
Additionally, the rise in commitment to resource allocation shows executive-level ownership and commitment to meeting the organisation’s compliance and regulatory requirements. This has increased in the last 12 months and shows an understanding of the importance of a top down approach to create change.
Additional opportunities for growth lie in the partnership with RegTech’s; a booming industry which is attracting some of the country’s most skilled and talented.
Yet, despite Australia being a hot bed for RegTech globally, it appears that this is still an untapped resource with only 23 per cent of leaders reporting that their organisation is currently engaging RegTechs; a mere three percent are actively pursuing RegTechs; while 32 per cent are considering it.
“Given what the sector has been through, there is nervousness around relatively new and untested technology, and it appears that organisations are hesitant to partner with RegTechs.
However, as the demand for skilled experts continues to grow and vacancies remain unfilled, organisations will need to look at alternative resources to meet their regulatory and compliance requirements,” concludes Shane.
The full report is available at http://www.tas.business/work/the-compliance-index-2/
TAS initiated the Compliance Index in 2017 to canvass the challenges and opportunities Australian companies are facing in the areas of compliance, regulation, technology and talent. The Index findings are drawn from responses gathered from C-level executives employed across banking, finance, insurance, superannuation and IT, with the aim of providing a timely and relevant snapshot of the latest compliance trends and strategies.
About TAS (www.tas.business): Founded in 1989, TAS is an Australian-owned and operated provider of technology services to the Australian financial services market. With extensive experience servicing one of the most highly regulated industries – Banking and Finance – TAS delivers the highest levels of availability, compliance and quality of service to over 60 clients.
¹SEEK Employment Report, November 2018, https://www.seek.com.au/about/news/seek-employment-reports/