The Secret to Reducing Compliance Risk in Financial Services: Visibility

More than 60% of financial organizations have incurred costs due to noncompliance. Clearly, the consequences of poor visibility have become too significant to ignore. Many firms struggle to keep pace with regulatory requirements because they lack a full view of their infrastructure and user behavior, leaving critical areas of compliance unchecked. For instance, many financial services firms report limited visibility into whether their systems comply with current and upcoming regulations — a costly blind spot.

These transparency gaps can result in financial penalties, reputational damage, and a significant drain on resources. More important, they expose sensitive customer data to potential breaches, jeopardizing trust — a fundamental currency in financial services. 

In an industry where 52% of firms lack visibility across users, assets, and infrastructure, blind spots can become ticking time bombs. These lapses not only increase the risk of breaches and data leaks but also threaten the organization’s compliance posture, ultimately affecting business continuity.

A primary challenge for financial services lies in the complexity of maintaining consistent visibility across their digital landscape. Fragmented tools and organizational silos lead to inconsistent and incomplete views, making it difficult for firms to understand what is happening within their systems at any given time. 

Many institutions operate with disparate vendor solutions, adding layers of complexity that can hinder cohesive oversight. According to an industry survey, 69% of firms report staff shortages and limited expertise as significant barriers to achieving full visibility, while 61% point to fragmented tooling as a key factor.

The use of a variety of vendors and platforms to monitor different areas of infrastructure may seem practical but it often leads to operational fragmentation. Institutions that rely on multiple vendors frequently report higher instances of operational impacts, suggesting that piecemeal monitoring solutions may do more harm than good. 

The complexity of managing multiple tools, combined with a shortage of trained security personnel, leads to a higher risk of missed alerts or misconfigurations that can result in costly compliance breaches.

Managing regulatory compliance is already a demanding task, and fragmented visibility tools only compound the challenge. Financial services firms often struggle to keep pace with the various regulatory requirements they face, from local mandates to international regulations like the General Data Protection Regulation (GDPR) and the Payment Card Industry Data Security Standard (PCI DSS). Visibility gaps can prevent institutions that operate on a global scale from tracking how different compliance policies intersect across regions, exposing the organization to unnecessary risk.

One of the key pain points lies in monitoring and managing user access across disparate systems. Financial services firms are highly targeted by cybercriminals because of the sensitive data they hold, and any missteps in access management can open the door to attacks. 

Many firms lack visibility into who has access to specific resources, how they’re accessing them, and what they’re doing once they’re in the system. Without a clear, unified view of access across systems, organizations struggle to enforce and verify compliance, putting customer data and the firm’s reputation at risk.

Achieving holistic visibility is essential for financial services organizations that want to mitigate compliance risk and protect their reputations. End-to-end visibility enables institutions to detect vulnerabilities early, respond more effectively to emerging threats, and maintain consistent compliance with regulatory mandates. 

In fact,  90% of financial institutions recognize the need for a unified visibility strategy and are actively seeking single-solution providers to streamline their monitoring and compliance management. This approach not only strengthens compliance but also enhances operational resilience since a comprehensive view of users, assets, and infrastructure helps to maintain business continuity even in the face of evolving threats.

With an integrated visibility solution, financial institutions can monitor all their assets, user activities, and infrastructure in real time, significantly reducing the likelihood of compliance violations. By consolidating visibility tools, financial firms can detect potential issues before they escalate, ensuring a proactive (rather than reactive) approach to security and compliance. 

Holistic visibility enables institutions to manage compliance requirements with greater precision, which can improve their capacity to respond to regulatory audits, document their processes, and provide evidence of compliance when needed.

Visibility reduces the risk of noncompliance in three key areas:

1. Access management

2. Data privacy and protection

3. Incident detection and response

Visibility into access patterns is critical for financial institutions because employees, contractors, and partners frequently interact with sensitive data. Without consistent access monitoring, it’s challenging to enforce identity and access management policies that align with regulatory standards. 

Real-time insights into user activities enable firms to detect unauthorized access or unusual behavior, which can prevent potential data breaches. A unified visibility solution allows security teams to quickly identify and mitigate issues, reducing the risk of costly noncompliance.

Financial services firms handle vast amounts of sensitive data, making them prime targets for cyberattacks. Visibility is essential for understanding data flows, identifying vulnerabilities, and ensuring that all data-handling practices comply with relevant regulations. With end-to-end visibility, institutions can pinpoint and address gaps in data security before they lead to breaches. 

Compliance with data privacy laws such as the GDPR and the California Consumer Privacy Act (CCPA) requires financial firms to maintain transparency about data storage, access, and sharing practices — which are only possible with comprehensive visibility.

The ability to quickly detect and respond to incidents is a critical component of regulatory compliance. In a complex regulatory environment, institutions need to prove they can identify and mitigate incidents in real time to minimize their impact. 

A unified visibility solution provides the monitoring and alerting capabilities needed to detect incidents early and respond quickly, meeting regulatory requirements and safeguarding customer data. Faster incident response times not only reduce compliance risk but also demonstrate the firm’s commitment to protecting sensitive information.

In an industry in which data is currency and trust is paramount, visibility should be more than a compliance measure — it should be viewed as a critical element of resilience. Financial institutions that prioritize visibility are better equipped to manage compliance, protect their data, and build a reputation of reliability. Holistic visibility transforms compliance from a reactive check-the-box exercise into a proactive strategy for risk management, enabling financial services firms to remain agile in the face of regulatory changes.

In today’s competitive landscape, financial institutions that embrace visibility and compliance as part of their core business strategy gain a competitive edge. Customers are more likely to trust firms that can demonstrate a robust security posture, and regulatory bodies are more inclined to view them favorably. 

Improved visibility not only protects against cyberthreats and compliance fines but also positions the firm as a trusted, resilient institution in the eyes of both customers and regulators. A reputation for strong data protection practices can enhance customer loyalty, attract new business, and solidify the firm’s standing in the market.

The financial services sector cannot afford to operate in the dark, especially as regulatory demands and cyberthreats continue to grow in complexity. Enhanced visibility is essential for maintaining compliance, securing sensitive data, and fostering customer trust. With the right visibility solution, financial institutions can transform their compliance strategy into a powerful risk management tool, enabling them to navigate a dynamic regulatory landscape with confidence and resilience.

Achieving visibility across all users, assets, and infrastructure is not just about regulatory alignment; it’s also about building a secure, agile, and adaptable organization that is prepared for whatever comes next. By working with trusted partners and embracing holistic visibility, financial institutions can ensure that compliance is more than a regulatory checkbox — it’s a foundation for sustainable success.