MCO Research Reveals 93% of Compliance Leaders Expect Budget Hikes Amid Tech Fragmentation

MCO (MyComplianceOffice) has released new research revealing that financial services firms are struggling with an average of nearly 14 different compliance systems, creating significant operational friction and visibility gaps. For fintech leaders, this highlights a critical disconnect between rising compliance budgets and the fragmented reality of legacy infrastructure, even as 100% of firms report adopting AI.

What was announced

The research, titled "Global Compliance Outlook: Rising Ambition, Fragmented Reality," was conducted by The Harris Poll on behalf of MCO. The study surveyed 370 senior compliance professionals at the director and C-suite levels across the United States, Europe, and the Asia-Pacific region. All participating organizations were financial services companies with a minimum of 500 employees.

The findings indicate a significant shift in the Chief Compliance Officer (CCO) role. While 42% of respondents currently see the role centered on regulatory engagement and policy interpretation, there is a clear move toward a more strategic function. Specifically, 37% expect the role to expand into strategic advice, 36% into data-driven compliance, and 32% toward a greater reliance on technology. This transition is supported by a surge in funding; 93% of respondents expect compliance budgets to increase, while 89% anticipate higher investment in compliance technology. The primary areas for this capital allocation are KYC and AML (44%), AI tools (39%), and data management (35%).

However, the report identifies a "fragmentation tax" impacting these firms. Organizations are currently using an average of 13.8 compliance systems, utilizing a mix of vendor technology, in-house builds, and manual processes. This complexity is particularly evident in the digital asset space. While 96% of respondents acknowledge that managing digital asset compliance is important, only 64% have a formal process in place for monitoring employee personal trading in digital assets.

"Firms are not short on ambition or investment. The priority now is ensuring that capabilities connect across the compliance program so leaders can see risk clearly, act on reliable information and support the business more strategically."

Paul Giardina, Chief Marketing Officer at MCO.

The companies involved

MCO, also known as MyComplianceOffice, is a provider of integrated compliance technology designed to help financial services firms manage regulatory obligations. The company’s core offering is a single-platform approach that consolidates compliance processes, data, and evidence across employees, transactions, and third parties. By centralizing these functions, the firm aims to reduce the operational burden of managing multiple disparate systems, which the recent research identifies as a primary pain point for the industry.

The company operates in a highly regulated global market, serving firms that require robust oversight and risk visibility. MCO’s platform is positioned as a solution for firms looking to move away from manual processes and fragmented vendor landscapes. The firm has recently focused on scaling its operations and leadership to meet the growing demand for automated, data-driven compliance solutions. This includes a focus on AI-driven compliance and strengthening the ability of firms to demonstrate compliance across their entire organizational structure, particularly as regulatory scrutiny on employee activity and digital assets intensifies.

What FF News has reported before

FF News has closely followed MCO’s recent efforts to scale its global operations and enhance its technological capabilities. In September 2026, the publication reported that MCO Secures Strategic Growth Financing from Accel-KKR to Scale AI Compliance Solutions. This financing was specifically aimed at accelerating the development of AI-driven tools, a priority that aligns with the 100% AI adoption rate noted in MCO’s latest research. Shortly after the funding announcement, FF News covered a significant leadership change in the report MCO Appoints RegTech Pioneer John Schobel as President to Drive Global Growth. Schobel’s appointment was seen as a move to leverage his experience in the RegTech sector to expand MCO’s international footprint.

What this means

The industry is reaching a tipping point where throwing more money at compliance is no longer enough to mitigate risk. The revelation that firms are juggling nearly 14 different systems suggests that the "RegTech boom" of the last decade has created a secondary problem: a lack of interoperability. While the 100% adoption rate of AI is a remarkable milestone, its effectiveness is inherently limited if the underlying data is trapped in silos. The market is likely to see intense pressure on vendors to provide consolidated platforms rather than point solutions. Furthermore, the gap in digital asset monitoring suggests that many firms are currently flying blind in one of the most volatile areas of modern finance.