Half of Financial Institutions Identify Regulatory Compliance as a Serious Barrier to Digital Transformation, OneSpan Research Reveals

OneSpan’s Second Annual Global Financial Regulation Report Reveals Upcoming Regulations Targeting Digital Currencies and Securing Digital Economies

CHICAGO, November 16, 2021–(BUSINESS WIRE)–OneSpan™ (NASDAQ: OSPN), the global leader in digital banking security and e-signatures, today released its second annual report Global Financial Regulation Report. Along with in-depth research into the impact of the changing regulatory landscape on the banking community, this year’s report also reveals how financial institutions are responding to new challenges presented by increasingly innovative hacking attacks, security sensitive data and ever stricter regulations. 48% of financial institutions say regulatory compliance has slowed digital transformation.

The research, conducted in partnership with market intelligence firm Arizent, interviewed more than 150 banking executives representing global financial institutions with assets of $100 billion. Despite major security and regulatory challenges faced by institutions in 2021, 84% of bank executives are taking steps to prepare for cutting-edge initiatives such as central bank digital currency (CBDC) over the course of 2021. of the coming year. In addition, half of the banks plan to set up mobile app shielding technologies to secure mobile applications in anticipation of upcoming CBDC initiatives.

Full research results are presented in OneSpan’s second annual report Global Financial Regulation Reportwhich provides guidance on the unique regulatory requirements affecting financial institutions globally, as well as key takeaways for industry leaders as they navigate the evolving digital economy.

Additional findings in the report:

  • Top compliance challenges for banks include: reducing or preventing cyberattacks (53%); protect sensitive data (47%), keep pace with changes in consumer privacy laws and industry regulations (41%);

  • Nearly half of banks are implementing remote digital identity verification and biometrics to comply with industry regulations. Another 41% prioritize emerging technologies such as Remote Online Notarization (RON).

  • Bank executives are generally optimistic about crypto regulation. 67% of financial services leaders agree that crypto regulations make it more attractive for banks to participate in the market.

“Catalyzed by the pandemic, the new era of digital banking has left regulators with an almost impossible task: to create an expansive and secure regulatory framework without stifling innovation,” said Steven Worth, interim president and CEO of OneSpan. “However, our research revealed that half of the world’s top banking executives have encountered obstacles due to regulatory compliance. OneSpan’s Global Financial Regulation Report will provide banks and financial institutions with the information they need to conform and maintain their competitive position.”

In addition to research, the second annual Global Financial Regulation Report outlines major developments in the regulatory landscape in 54 jurisdictions around the world, delving deeper into country-by-country analysis of CBDCs, open banking, intelligence artificial intelligence, digital identity frameworks, electronic signatures and remote online notarization and data privacy. The full report is available here.

Join OneSpan and experts from the Digital Identity and Authentication Council of Canada (DIACC) and the Better Identity Coalition to learn about policies and regulations related to protecting digital identities in Canada and the United States , register here.

About OneSpan

OneSpan helps protect the world against digital fraud by building trust in who people are, the devices they use, and the transactions they perform. OneSpan’s security solutions dramatically reduce digital transaction fraud and enable regulatory compliance for more than half of the top 100 global banks and thousands of financial institutions worldwide. Whether it’s automating agreements with identity verification and electronic signatures, reducing fraud using advanced analytics, or seamlessly securing financial transactions, OneSpan helps reduce costs and accelerate customer acquisition while improving the user experience. Learn more about onespan.com.

Copyright© 2021 OneSpan North America Inc., all rights reserved. OneSpan™ is a registered or unregistered trademark of OneSpan North America Inc. or its subsidiaries in the United States and other countries.

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