Compliance, despite having a seemingly inconspicuous effect, has and will continue to have an enormous impact on finance. All over the world, institutions end up spending more than 200 billion dollars each year just so they can keep up with regulations. Because of the worldwide importance of compliance, the numbers keep climbing and the scope of this concept keeps expanding. It has become very important for financial institutions to keep updated with compliance regulations to avoid repercussions.
These days, ESG reporting is no longer a side note. In fact, it now directly influences credit risk and investment ratings. With all this, it’s safe to say that compliance is not just something that financial institutions need to tick off a list. Instead, it is a core part of how markets gauge the health and stability of any firm regardless of the niche.
However, one pressing issue is that a lot of banks and financial institutions still rely on outdated and manual processes. Instead of pushing for growth, they are hindering their progress significantly. With spreadsheets, long email chains, and paper-heavy audits eating up resources and slowing everything down, there is almost no room for innovation and growth.
Because of this, mistakes become all too common. But it’s a good thing that platforms like HSE software give leaders one place to see it all, from compliance tracking to ESG performance. As Ewan Cohen has pointed out, the winners will be those who see compliance as an engine for efficiency and resilience rather than an endless cost burden.
The Growing Compliance Burden
If you take a closer look at the landscape, you will be able to see why antiquated processes are such a big challenge.The Financial Conduct Authority in the United Kingdom has always imposed strict rules about transparency.
GDPR is widely known to govern data privacy across Europe. Add global standards such as ISO 14001 for environmental management and ISO 45001 for health and safety to the mix, and suddenly every institution is juggling overlapping frameworks that rarely line up neatly.
Because of this, there is pressure from all sides. Compliance officers spend a lot of their time running after data across departments that barely communicate. Audit season is considered a nightmare. Plus, with ESG reports running late, investors see red flags almost everywhere. The burden is not only financial. It is cultural, and it weighs heavily on the teams responsible for keeping the firm safe.
How Digital Platforms Change the Picture
Digital compliance platforms flip that picture. Instead of scattered systems, they bring everything into one place. Leaders can log into a single dashboard and see where risks lie. Automated reporting means regulators can be shown complete, accurate data instantly rather than after months of preparation. Proactive alerts highlight issues before they become scandals.
And then there is ESG. With digital tools, sustainability reporting is built into the compliance process instead of being bolted on at the end. That matters because investors are increasingly treating ESG data as part of financial health. The integration turns compliance into something more than protection. It becomes a tool for building trust.
A Roadmap for Leaders
For finance executives wondering where to start, the steps are straightforward. Begin by mapping every regulatory obligation. Once the landscape is clear, focus attention on the riskiest areas, particularly data security, audit readiness, and ESG disclosures. Then automate what can be automated. Every repetitive task that is digitized saves time and cuts down on human error. Finally, make ESG part of the compliance strategy rather than an afterthought. Transparency at this level is exactly what investors want to see.
Insight from the Industry
People inside the sector know what is at stake. Ewan Cohen has said that compliance should be seen as a driver of efficiency and resilience. His words reflect a shift in how financial institutions are thinking. Compliance is not just about checking boxes anymore. It is about showing strength in the face of constant scrutiny.
What Success Looks Like
The impact of this shift is already visible. A mid-sized financial firm recently introduced a digital compliance platform based on HSE principles. Before the change, the compliance team spent thousands of hours on manual audit preparation. After adoption, preparation time fell by 40 percent. ESG disclosures were delivered on schedule, and accuracy improved significantly. Investors responded positively, and the firm’s exposure to regulatory fines dropped. That is what measurable return on investment looks like in this space.
Conclusion
The direction of travel is clear. Regulations are not shrinking, and ESG expectations are only becoming sharper. Manual methods cannot keep up with the pace. Digital compliance tools such as HSE software give institutions the clarity and efficiency they need to stay competitive. With guidance from leaders like Ewan Cohen, the industry is learning that compliance is more than a defensive shield. It is a way to prove resilience, build trust, and secure growth in a market that rewards
