There is a strategic shift emerging in how financial firms handle changing regulatory requirements. That’s according to CUBE’s 2025 Cost of Compliance Report, which surveyed over 2,000 senior leaders from global financial institutions to explore compliance concerns, insights and trends.
The results show that rising costs, limited resources, geopolitical tensions, and evolving technology are making compliance more complicated (and more important) than ever.
Here are the key takeaways from the report:
- 33% of firms expect major changes to their compliance strategy because of global political risks
- 74% of firms take over a year to fully apply new regulations. That delay can lead to a serious risk of non-compliance
- 60% of firms expect regulatory change management costs to go up, and 21% say their current approach to change management isn’t working well
- Data governance is the #1 challenge for 2026. It’s also a big opportunity
- 98% of firms use automation, but only 38% have automated more than half of their processes
Compliance Costs Are Increasing
Most firms expect to spend more on regulatory change management (RCM) this year. In fact, 63% already spend more than two-thirds of their compliance budget on it. But even with all that money, 21% say their approach is somewhat or highly ineffective.
Bottom line: Spending more doesn’t always mean better results. Firms need smarter tools and better planning.
Global Risks Are Changing the Rules
Political tensions around the world (like trade wars and new environmental laws) are making compliance more complex. Issues like AI governance, climate risk, and crypto regulations are now key parts of compliance planning. One in four firms say they’ll need to make big changes to how they manage compliance with 8% expecting fundamental business model implications.
Automation Is a Must – But It’s Not Enough
Almost all firms (98%) use some automation in their compliance work. But only 38% have automated more than half of their processes. That leaves big gaps in speed, accuracy, and risk control.
AI already helps with tasks like horizon scanning and change management, but bad technology setups are a major risk. Clearly, choosing the right technology and the right teams are key to automated success.
Data Governance Is a Top Challenge
Data governance means managing how data is collected, stored, protected, and used. It’s now the biggest challenge for compliance teams. With AI, privacy laws, and cybersecurity rules growing fast, firms need strong systems to handle their data. The good news is that smart data governance can help firms treat data as an asset rather than a liability.
Compliance Is a Leadership Issue
Regulators are watching senior managers more closely. 16% of firms are getting their executives more involved in compliance decisions. Many are using tools like decision registers and implementing extra training to reduce personal risk.
What Should Your Organisation Do Next?
The Cost of Compliance Report 2025 gives a clear plan for the next two years:
- Next 6 months: Improve data governance and use AI to speed up risk assessments
- 6–18 months: Build systems that connect risk and regulation, and apply the strictest standards across regions
- 12–24 months: Prepare for AI and quantum computing, and build tools for real-time risk tracking
Future-Proof Your Compliance Strategy
The Cost of Compliance Report 2025 shows that firms must move from reacting to alerts, to managing risk proactively. Automation, data governance, and leadership support are key.
If your firm is still relying on manual processes, siloed systems, or outdated frameworks, now is the time to evolve. The cost of doing nothing is rising – and so is the regulatory scrutiny.
Download the full report or learn how CUBE’s RegPlatform can help your team stay ahead of change.