NASHVILLE, Tenn. —A new survey of compliance officers has found financial institutions are shifting compliance from “regulatory obligation to a strategic advantage,” even as compliance teams face mounting pressure from limited staffing, flat budgets and expanding regulatory demands.
The report, from Ncontracts, “The Future of Compliance: Benchmarking the People, Processes, and Pressures Shaping Compliance in 2026,” draws on responses from 183 institutions of varying sizes and charters. It finds broad support for compliance at the leadership level, with 82% of respondents reporting satisfaction with board and management backing and 74% satisfied with their institution’s compliance culture. More than half said compliance is now more integrated into policies, procedures and training than it was in 2021.
Evolution Taking Place
“What we’re seeing is compliance evolving into a strategic function that influences everything from risk culture to boardroom decision-making,” said Michael Berman, founder and CEO of Ncontracts. “Yet compliance teams are being asked to do more with the same resources, creating both challenges and opportunities for institutions willing to invest in modernization and talent development.”
Other Key Findings
According to nContracts, other key findings include:
Lean Teams Managing Expanding Mandates
- 38%) operate with just one or two compliance professionals
- 25% of institutions in the $1–10 billion range still operate with only one to two compliance staff
- 64% of teams expect their budgets to stay the same or decrease over the next 12–18 months
Widening Knowledge Gap
- 64% of compliance professionals have eight or more years of experience
- 24% of institutions say up to a quarter of their compliance staff will be eligible for retirement within five years
- 9% could lose more than half their compliance workforce to retirement
Regulatory Uncertainty Tops Risk Concerns
- Regulatory uncertainty (38%) leads compliance risks in 2025
- Fair lending (33%), limited resources (30%), and staff training (30%) follow as top concerns
- Traditional risks like BSA/AML (25%) and cybersecurity (16%) have fallen from their 2021 peaks of 57% and 50%
Technology Creates Compliance Divide
- Institutions using manual processes report seven times more examiner questions and concerns
- Manual processes result in four times lower satisfaction with staffing and strategic involvement
- Only 32% of institutions report no AI use in compliance, with 26% exploring or piloting AI solutions
Reliance on Spreadsheets
nContracts said the survey also found reliance on spreadsheets and email correlates with significantly higher regulatory challenges. Among institutions exploring AI, data quality (36%) and regulatory uncertainty (21%) remain major barriers.
The report urges financial institutions to prioritize automated compliance systems, succession planning for an aging workforce, stronger collaboration between compliance and risk teams, and adaptive frameworks that can respond to fast-changing regulatory expectations. Technology investments, it argues, should be seen not as costs but as strategic tools that turn compliance obligations into operational advantages.
