MINNEAPOLIS — Concern among U.S. banks about managing regulatory compliance and risk obligations fell for a third straight year in 2025, reflecting a pullback in enforcement activity and a slowdown in new regulations, according to a survey released by Wolters Kluwer.
The company said its Regulatory & Risk Management Indicator dropped to an index score of 88 in 2025, down from 99 in 2024 and 117 in 2023, marking a significant decline in perceived compliance risk across the banking industry.
Wolters Kluwer said the lower reading was driven largely by sharp reductions in regulatory pressure compared with a year earlier, including a 61-point drop in the dollar amount of fines imposed on banks, a 48-point decrease in the number of new major regulations introduced, and a 26-point decline in enforcement actions. Those declines outweighed increases in risk management concerns, the firm said.
“The current pullback of regulatory actions undoubtedly impacts respondents’ concerns as to measuring their ability to comply with regulatory obligations and risk management challenges,” Jason Keller, director of market strategy for compliance analytics at Wolters Kluwer Financial & Corporate Compliance, said in a statement.
‘Rising Anxiety’ in Some Areas
Despite the overall decline in concern, the survey found rising anxiety in several risk areas. Worries about ransomware attacks increased by nine points, concerns about operational resiliency rose by seven points, and fears of loan defaults climbed by six points. Looking ahead, respondents said cybersecurity and credit risk are likely to receive heightened attention over the next year, while concern about managing compliance risk fell sharply.
The survey also found that manual compliance processes remain a major challenge, with 88% of respondents reporting frequent or occasional reliance on spreadsheets and other manual tools. Planned technology investments include digitizing lending processes, automating regulatory change management, and expanding the use of artificial intelligence and machine learning.
Top Compliance Challenge
Tracking regulatory changes remains the top compliance challenge, the report said. Implementation of the Small Business Data Collection Rule, known as Section 1071, ranked as the highest concern, followed by fair lending requirements and Bank Secrecy Act and anti-money laundering rules.
Wolters Kluwer noted the survey was completed before regulators proposed changes to delay and revise Section 1071 implementation, a development that could influence future responses.
