Ncontracts has announced the release of “The Future of Compliance: Benchmarking the People, Processes, and Pressures Shaping Compliance in 2026,” a comprehensive survey examining how financial institutions are navigating evolving compliance expectations and regulatory complexity.
The survey, which drew responses from 183 financial institutions across various asset sizes, charters, and geographies, reveals that compliance has evolved from a regulatory necessity to a strategic differentiator. However, the data also shows compliance departments operating under significant pressure, with lean staffing, static budgets, and expanding regulatory scope.
One notable finding is that compliance is gaining prominence at the leadership level. According to the survey, 82% of respondents say they are satisfied with board and management support, and 74% are satisfied with their institution’s compliance culture. More than half (56%) report stronger integration of compliance into policies, procedures, and training since 2021.
“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 include:
Lean Teams Managing Expanding Mandates
- Nearly 4 in 10 institutions (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 7x more examiner questions and concerns
- Manual processes result in 4x lower satisfaction with staffing and strategic involvement
- Only 32% of institutions report no AI use in compliance, with 26% exploring or piloting AI solutions
The survey also found that institutions relying on spreadsheets and email for compliance management experience significantly more regulatory challenges than their automated counterparts. Among institutions exploring artificial intelligence, data quality (36%) and regulatory uncertainty (21%) represent the primary implementation barriers.
Financial institutions navigating today’s compliance landscape should prioritize several critical areas. Investing in automated compliance management systems to reduce manual processes and examiner concerns represents an immediate opportunity for improvement. Developing comprehensive succession planning and knowledge transfer programs to address the impending retirement wave among experienced compliance professionals is equally essential. Institutions should also focus on strengthening cross-functional collaboration between compliance and risk management teams while building adaptive frameworks that can respond to evolving regulatory uncertainty. Most importantly, organizations must view compliance technology investments not as costs but as strategic enablers that transform regulatory requirements into operational strengths.