Regulatory Compliance: The Benefits of GRC Banking Solutions

GRC banking technology can turn regulatory pressure into a strategic advantage by ensuring compliance with complex regulations like GDPR, SOX, and global ESG mandates. This minimizes the risk of fines or sanctions and also helps build brand credibility and investor confidence. 

Why GRC Banking Technology is Needed 

The banking industry is one of the most heavily regulated sectors because of the central role banks play in maintaining economic stability. History shows that when banks falter, serious consequences can follow. For example, a series of failures among mid-sized banks in 2023 triggered mass withdrawals, sparked a credit crunch, and fueled recession fears. In response to the 2023 crisis, regulators tightened standards covering governance, capital, liquidity, and credit.  

Regulators of the banking industry tend to focus on capital, risk management, consumer protection, data privacy, anti-money laundering, and governance.   

• Capital: Ensure banks maintain sufficient financial buffers to absorb losses and continue operating during economic downturns. This protects depositors, investors, and the broader financial system from collapse. 

• Risk Management: Require banks to identify, assess, and mitigate financial and operational risks. These rules safeguard customers, the institution itself, and the economy from systemic shocks. 

• Consumer Protection: Ensure fair treatment, transparency, and accountability. These laws protect citizens from fraud, predatory lending, and misleading practices.  

• Data Privacy: Mandate secure handling of personal and financial information. Protect customers from identity theft, unauthorized access, and misuse of sensitive information. 

• Anti-Money Laundering: Require banks to detect and report suspicious activities. These regulations protect society by preventing terrorism financing, organized crime, and corruption.  

• Governance: Promote ethical leadership, accountability, and transparency within banks. These standards protect shareholders, employees, and customers by ensuring decisions are made responsibly and in compliance with laws.  

How GRC Banking Technology Reduces Regulatory Risk and Costs 

GRC banking technology provides a framework to help institutions manage risk and monitor regulatory compliance requirements. Integrated platforms can map regulatory obligations to policies and controls. Automated workflows streamline efforts and reduce manual tasks, while also minimizing the risk of human errors.  

Dashboards provide a centralized view of risk exposure, allowing banks to manage regulatory compliance timelines, potential areas of non-compliance, and other red flags.  

GRC banking solutions that have integrated ethics and compliance training educate employees in the flow of work. Popular courses related to insider trading, money laundering, and code of conduct equip employees to safeguard their organization against financial crime.    

Who is Responsible for Regulating Banks 

Each country has its own network of agencies responsible for regulating banks. Here are just a few examples:  

Regulators in the U.S. 

• Federal Reserve: State member banks, large nonbank financial firms, and bank holding companies 

• Federal Deposit Insurance Corporation (FDIC): State non-member banks 

• Office of the Comptroller of the Currency (OCC): National banks and federal branches of foreign banks 

• Consumer Financial Protection Bureau (CFPF): Large banks, nonbank financial institutions  

Regulators in the UK 

• Prudential Regulation Authority (PRA): Banks, building societies, credit unions, insurers, major investment firms  

• Financial Conduct Authority (FCA): Financial services firms 

Regulators in Singapore 

• Monetary Authority of Singapore (MAS): All financial institutions 

Banks that fail to meet regulatory standards can face steep fines, legal penalties, and reputational damage. In 2024, a U.S. bank was fined $3.09 billion for compliance failures related to anti-money laundering. That same year, the UK’s Prudential Regulation Authority (PRA) penalized a bank $74.12 million for improper implementation of Depositor Protection rules.    

How SAI360 Can Help 

SAI360’s GRC banking solution is purpose-built for financial institutions navigating today’s complex risk and compliance landscape. Trusted by more than 300 financial services organizations globally, the SAI360 GRC Platform brings together ethics, governance, risk, and compliance within a single solution – eliminating silos and improving visibility.  

Leveraging technology, SAI360’s integrated modules and automated workflows streamline efforts for increased efficiency and robust analytics. AI-powered horizon scanning software flags emerging risk signals, including cyberattacks and vendor vulnerabilities, then maps threats to internal controls.  

Learn more about SAI360’s financial services capabilities by requesting a demo.