MCO’s Global Compliance Outlook, conducted by the Harris Poll on behalf of MCO, surveyed senior compliance professionals at financial services firms to understand the priorities, risks and technology decisions shaping compliance today. The findings provide a view into where firms are investing, how compliance operations are changing and the challenges that remain as firms plan for 2027.
Key Highlights
- MCO’s Global Compliance Outlook survey shows financial services firms preparing for increased regulatory expectations and continued compliance technology investment. Nine in ten respondents expect regulatory expectations to increase over the next 12 months.
- Compliance budgets and technology investment are expected to rise. 93% expect compliance budgets to increase, while 89% expect compliance technology investment to increase.
- KYC/AML and transaction monitoring lead compliance investment priorities at 44%, followed by AI tools at 39% and data management, analytics and reporting at 35%.
- Financial services firms use an average of 13.8 distinct compliance systems, creating challenges around integration, data, workflows and risk visibility.
- AI is already being used for core compliance activities. 44% use AI for analytics or risk scoring and 40% for surveillance or alerting.
What Are the Top Priorities for Compliance Leaders in 2027?
Financial services firms are preparing for another year of heightened regulatory pressure. Nine in ten respondents expect regulatory expectations to increase over the next 12 months, adding to the demands already placed on compliance teams managing financial crime, employee compliance, communications surveillance and other areas of risk.
The survey also shows how the risks themselves are evolving. Regulatory change ranks among the top risks for 38% of respondents, while the expanding use of AI introduces new areas of risk for compliance teams to manage.
There is no single issue defining the current compliance landscape. Financial services firms are managing multiple areas of risk at once, increasing the need to apply consistent controls where information, behavior and risk intersect.
Download the full Global Compliance Outlook survey.
Where Compliance Investment Is Going
Investment plans reflect the range of demands facing compliance teams. Global Outlook respondents put KYC/AML and transaction monitoring at the top of the investment agenda at 44%, followed by AI tools at 39% and data management, analytics and reporting at 35%. Financial services firms are balancing investment in established compliance responsibilities with technology and data capabilities that support how those responsibilities are managed.
There is also budget available to support those priorities, with 93% of respondents expecting compliance budgets to increase over the next 12 months. The combination of higher budgets and investment across compliance, AI and data puts technology firmly on the agenda for the year ahead.
Read about taking a connected, risk-based approach to KYC compliance.
Multiple Compliance Systems Affect Risk Visibility
The survey also provides a look at the technology environments supporting today’s compliance programs. The average organization uses 13.8 distinct compliance systems. A technology environment of that size can reflect the breadth of a mature compliance program, but it can also create challenges around integration, data and workflows.
The number of systems is not necessarily the issue. What matters is whether those systems allow compliance teams to connect information and gain a comprehensive view of risk across the firm. Respondents noted functionality gaps, overlapping systems, data-extraction fees and operating costs that can create a “fragmentation tax”, consuming resources, duplicating effort and making compliance evidence harder to access when it is needed.
Read about the benefits of consolidating compliance technology.
How Compliance Teams Are Using AI Today
The Global Outlook findings show that AI is already being used for core compliance activities, with 44% of respondents using AI for analytics or risk scoring and 40% using it for surveillance or alerting. Respondents also identified some of the most valuable applications in other data-intensive areas of compliance, including KYC/AML, communications surveillance, policy management and data normalization.
As AI moves into production across these areas, governance becomes part of its use. Financial services firms need to establish accountability, explainability, auditability and human oversight around AI as it becomes more embedded in compliance processes.
Read a guide to responsible AI for compliance officers.
The Compliance Function Is Becoming More Strategic
The survey also points to changing expectations for compliance leadership. Strategic adviser is the role compliance leaders most often select for the future CCO, cited by 37% of respondents, compared with the current emphasis on regulatory engagement and policy interpretation. Data-driven compliance and embedding technology into compliance processes also become more prominent when respondents consider the future role of the function.
The regulatory foundation remains essential as the role develops. It provides the base from which compliance leaders can offer risk-based advice, support business decisions and help the firm grow with appropriate controls.
Read the top ten reasons why we love compliance officers.
Building a More Integrated Compliance Operating Model for 2027
Technology will remain a significant part of the compliance agenda in the year ahead, with compliance technology investment expected to increase at 89% of organizations. For financial services firms making those investments, the central decision is how to strengthen the overall compliance operating model without adding further fragmentation.
That means considering new capabilities within the wider technology environment, including integration, data access, reporting and user experience. The direction is toward more integrated compliance, connecting technology, data and workflows so firms can improve risk visibility, respond to regulatory change and support a more strategic compliance function.
Read a story about just-right compliance technology.
How MCO Helps Firms Manage an Increasingly Complex Compliance Environment
The Global Outlook highlights challenges that compliance teams are dealing with every day: increasing regulatory expectations, fragmented technology, expanding use of AI and the need for better visibility across risk. MCO’s integrated compliance platform brings processes, data, workflows and reporting together so financial services firms can manage that complexity without adding more disconnected systems.
MCO enables firms to manage the core areas of compliance on a single platform, including KYC/AML and transaction monitoring, employee compliance, communications surveillance and third-party risk. Connecting data and workflows across these areas gives compliance teams a clearer view of risk, reduces duplication and makes information and evidence easier to access when needed.
Ready to learn how MCO provides firms with a foundation for stronger compliance as as regulatory requirements, technology and business needs continue to evolve? Contact us for a demo today.
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