Publication

This paper discusses the findings from interviews with global financial institution executives on the impact on financial organizations of regulations introduced by countries on how corporations can transmit customer data across borders. The interviews reveal that the increasing complexity brought about these regulations is decreasing the operational efficiency of financial organizations. This is partly because banks are now devoting resources to interpret and accommodate these regulations. Those interviewed also suggested these developments could slow the expansion of financial services in developing countries. Finally, the authors provide recommendations on how financial institutions can adapt to the complexity of the regulatory environment.