As financial services industries evolve, so do the expectations when it comes to compliance monitoring. It is important to develop a risk-aware culture across business units that enables quick detection of any potential violations and keeps the organization up to date with regulatory changes.

In this blog we unpack insights into the trends shaping compliance management software, the benefits of investing in platforms.

Teams are using our guide to next-generation compliance monitoring to prepare for the complexities of risk management in 2026.

The Compliance Management Landscape

Compliance monitoring has become a top priority for all financial institutions and financial service providers. Previously there were fewer complex regulations with fewer overlaps, and manual oversight was the norm. However, AI-driven technology has changed all this.

Organizations are not only looking to spend fewer resources on compliance, but also to keep up with emerging risks (i.e. cybersecurity attacks), industry expectations (such as ESG), and other demands outlined by regulators. Read on to learn more about the current and future trends that have surfaced around compliance monitoring.

Current Trends

The past year has been more complex than ever for financial service providers when it comes to compliance monitoring. Regulators are stricter than ever before, and this is set to continue into 2026. Before we delve into the future of monitoring and managing compliance, we can look at what the current industry trends have shown us:

  • Adoption of AI-driven software
  • Workflow automation for compliance teams
  • Introduction of ESG as a hard requirement for organizations
  • Unified third-party risk management
  • Continuous control monitoring as a default

Future Trends

The future of compliance management is driven by an increasingly automated approach to monitoring regulations, storing data for use in audit trails, and collaborating across business units. Here are some of the main trends driving the future of compliance management and monitoring in the year to come:

  • Machine readable regulations (regulators publishing changes in this format)
  • ESG as a standalone metric of compliance within organizations
  • Stricter privacy laws that organizations must abide by

These are just some of the trends shaping the future of the industry. As the regulatory and compliance landscape continues to change in tandem with global pressures, so will these trends.

Continuous Monitoring

The days of periodic assessments and regulatory change monitoring are over. Financial service providers are now monitoring all their data and advisement from regulators using the latest in AI-driven software.

This decision on the part of compliance teams takes a step back from the manual approach to compliance management in favour of a technological approach. See some of the key differences below:

Aspect Continuous Monitoring Periodic Assessments
Frequency Ongoing / real-time Scheduled intervals (quarterly, annually)
Detection Early, near real-time After the fact
Method Automated data collection & alerts Manual reviews, sampling, interviews
Response Time Rapid remediation Slower, post-assessment
Cost Higher upfront (tooling), lower ongoing Lower upfront, resource-intensive per cycle
Best For Dynamic environments, modern frameworks Formal audits, certifications, stable environments
Evidence Machine-readable, continuous Documented reports per cycle

See our blog about continuous monitoring versus period assessments to learn more about the process involved in each one.

Benefits to Using GRC Software

There are certain key benefits to using GRC software that organizations cannot gain from manual processes when it comes to risk and compliance management. Some of the main benefits of integrating automated systems into your team’s workflow include:

  • Breaking down siloed workflows
  • Creating audit trails for compliance teams (reducing prep)
  • Saving on resources including time and labour
  • Cutting compliance costs by up to 30% (according to Steel Patriot Partners)
  • Predictive analytics and trend analysis
  • Faster response to regulatory non-compliance and changes
  • Better transparency for decision-making by leadership

Choosing the Right Platform

While your compliance team may have several different GRC platforms in their technology stack, we recommend an integrated approach. The right platform will allow your compliance team to liaise with relevant stakeholders, provide an audit trail to regulators and continuously monitor risk.

Predict360 vs. Competitors

The Predict360 platform is a leader in AI-driven risk management technology for both small and large financial service providers. Its automation and integrated workflow features allow your team to save time and stay ahead of any potential violations or regulatory changes.

See our table below for a quick overview of how Predict360 compares to other leading platforms in the risk management space:

Predict360 Most Other GRC Platforms
Designed for banks, mortgage lenders, and insurers (endorsed by the American Bankers Association (ABA). Built to serve multiple industries which often results in generic workflows that lack deep financial regulatory context.
Comes out-of-the-box with proprietary risk and control libraries, reducing the need to build content from scratch. Customers must manually upload or build their own risk registers, control frameworks, and regulatory libraries before the system provides value.
Uses AI to automatically map complex regulations to internal risks and controls, predicting where compliance gaps might occur. Rely primarily on manual data entry where compliance teams must read regulations and manually link them to specific internal controls and risks.
Cloud-native and modular design allows for deployment in days or weeks, enabling immediate ROI. Often requires 6-18 months implementation time, involving expensive consultants, custom coding, and heavy IT involvement.
Features built-in integration with standard BI tools like Power BI and Tableau for advanced visualization without leaving the platform. Often rely on rigid, proprietary reporting modules that are difficult to customize or require exporting data to Excel/external tools for deep analysis.

Compliance Monitoring

What’s the difference between continuous and periodic compliance monitoring?

Continuous Monitoring Periodic Monitoring
Real-time, ongoing surveillance with instant alerts Scheduled assessments at fixed intervals (monthly, quarterly, annually)
Automated systems detect deviations Manual reviews identify issues
Supports rapid remediation and proactive risk management Slower response times; more reactive approach
Better suited to dynamic, fast-changing environments More suitable for stable industries with infrequent regulatory changes

What should an effective compliance monitoring plan include?

A strong compliance monitoring plan should contain:

  • Defined methods for identifying compliance issues
  • Dedicated teams for compliance implementation and enforcement
  • Predetermined schedule for assessments and testing
  • Specific controls used to test systems and maintain audit trails
  • Measurable indicators to track the effectiveness of the compliance program
  • Periodic review and adjustment of the plan to align with regulatory changes

Next-generation compliance monitoring is all about choosing to take a proactive approach to risk and compliance management. Once you integrate the right technology through your chosen software, your organization will be able to monitor and keep track of regulatory changes as they happen.