The financial services industry is grappling with an escalating regulatory environment, leading to significant operational strain and "compliance fatigue" among firms. This is according to a new report from Omega Systems, a leading managed IT and cybersecurity provider. The study, titled "Regulatory Pressure & Compliance Fatigue in Financial Services," surveyed over 300 U.S. executives and reveals that manual processes, legacy systems, and a lack of internal expertise are hindering the ability to meet new stringent requirements from bodies like the SEC, NYDFS, and FINRA.
A new Omega Systems report highlights mounting regulatory pressure and compliance fatigue in financial services.
42% of firms cite staying current with evolving regulations as their top compliance challenge.
Over half (54%) still rely on manual systems like spreadsheets to track security controls.
36% of respondents say they lack sufficient internal expertise to meet mandates.
Disconnects exist between CFOs (53% concerned) and CIOs (38% concerned) on regulatory issues.
Automation for data discovery and evidence collection is a top priority for improving audit readiness.
A primary finding of the report is the industry's heavy reliance on inefficient, manual methods for critical compliance tasks. The majority of firms (54%) still use spreadsheets or in-house systems to benchmark and track security controls. This level of manual oversight creates significant exposure to documentation errors and audit gaps. Compounding this issue, half of all firms (50%) continue to operate on outdated or on-premise infrastructure, which is ill-equipped to meet modern transparency and documentation requirements.
The research also uncovered a strategic disconnect within financial organizations. While evolving regulations are a top concern for 53% of CFOs, only 38% of CIOs share this level of concern, indicating a potential misalignment between financial and technical teams. This disconnect is exacerbated by a widespread skills gap, with more than a third (36%) of executives reporting they lack the sufficient internal expertise needed to comply with the latest regulatory mandates effectively.
The report identifies automation and technological modernization as the critical solution to reducing compliance fatigue. Firms are prioritizing investments in data discovery (51%), automated evidence collection (45%), and document management (45%) to improve audit readiness and control visibility. The study concludes that integrating managed compliance platforms, continuous monitoring, and automated processes is essential for firms to not only meet new regulatory standards but also to consistently demonstrate proof of their compliance.
Mike Fuhrman, CEO of Omega Systems, contextualized the findings by highlighting a shift in the definition of resilience. He stated, “Resilience used to mean protection. Today, it means proof. Regulators, investors, and clients want confidence that firms can defend their systems and demonstrate compliance with clarity and consistency – the kind of discipline that earns lasting trust in the financial services industry.”
About Omega Systems
As a multi-award-winning MSP and MSSP, Omega Systems is passionate about delivering the security and compliance expertise today’s businesses need alongside the responsive and reliable managed IT support they deserve. The company services highly regulated and security-conscious organizations across the U.S., including those in financial services, healthcare and professional services. Omega’s service-driven IT solutions portfolio includes 24×7 managed IT support, cybersecurity risk management, threat detection and response, backup and disaster recovery, multi-cloud connectivity, and much more.
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