For small and mid-sized banks in MENA and Africa, regulatory compliance has become one of the largest recurring costs. But few institutions have the systems—or scale—to manage it efficiently.
The Hard Numbers Behind Regulatory Pressure
- The global cost of financial crime compliance in 2023 was $206 billion, with EMEA alone accounting for $50 billion. (LexisNexis Risk Solutions, True Cost of Financial Crime Compliance Report, 2023)
- Small and mid-sized financial institutions spend 3x more per dollar of revenue on compliance than large banks. (Deloitte Center for Financial Services, 2022)
- In a 2023 PwC Middle East Risk and Regulatory Survey, 58% of banks in the region cited compliance costs as a major barrier to innovation and expansion.
These costs aren’t just about fines—they’re hidden in day-to-day operations: fragmented data, duplicated manual tasks, delayed approvals, and unclear audit trails.
A Regional Breakdown: MENA and Africa
Financial institutions in MENA and Sub-Saharan Africa face a unique regulatory landscape shaped by:
- Shifting AML and KYC rules (especially in response to FATF updates)
- Increasing pressure from central banks to digitize reporting
- Dual regulatory obligations (e.g., local compliance + GDPR or FATCA for international services)
Yet according to the International Finance Corporation, less than 25% of banks in Africa and 30% in MENA have invested in fully integrated regulatory reporting systems.
What’s the Solution?
Institutions need more than compliance tools—they need compliance platforms.
That’s where Cubic Systems comes in. We help banks implement RegTech solutions using Microsoft Dynamics 365 to:
- Automate KYC/AML workflows
- Centralize compliance data for fast audit readiness
- Digitize internal controls and reporting
- Integrate with local regulatory bodies (e.g., central bank portals, tax authorities)
This isn’t a theory—it’s working. In one deployment in North Africa, a mid-sized bank reduced audit prep time by 45% and decreased compliance overhead by 22% within the first year.
Final Thought
Compliance doesn’t have to drain your resources. With the right platform and processes, it can become a driver of resilience and growth.
Let’s explore how to build an efficient, cost-effective compliance engine for your institution.
Contact Cubic Systems today