By Anders Olson, Senior Manager of Data Science Product Engineering at NAVEX
The financial services industry operates in a high-stakes environment where trust, transparency, and compliance are paramount. As the sector continues to evolve, the benchmarks around reporting activity, allegations, substantiation rates, and case closure times provide critical insights into organisational health, employee engagement, and the effectiveness of compliance programs.
These metrics are not just numbers – they reflect an organisation’s culture, its ability to manage risk, and its resilience in navigating ethical challenges. This article will unpack key trends from NAVEX’s 2025 Regional Whistleblowing and Incident Management Benchmark Report data, compare them to industry-wide medians, and explore actionable strategies to improve risk and compliance outcomes.
Key Trends Over Time
• Reports per 100 employees in financial services increased from 1.50 in 2023 to 1.63 in 2024, outpacing the all-industry median, which remained flat at 1.57. This suggests heightened awareness or potential risk exposure in the sector.
• Allegations per 100 employees rose from 1.34 in 2023 to 1.40 in 2024; -allegations per 100 employees increased twice as much in the financial sector as they did in the all-industry median
• While financial services show a gap in allegations, the median is beginning to converge with the all-industry median, showing a trending improvement.
• Anonymous reporting dropped from 54% in 2023 to 50% in 2024, while the all-industry median remains higher at 54%. This could point to continued distrust in reporting mechanisms within financial services, when compared to the broader trend away from anonymity.
• Comparison with other industries:
o Similar to other industries, financial services have a significant proportion of cases related to workplace civility reports at 47.2% in 2024, indicating an area for potential focus.
o Reports related to business integrity, including concerns like bribery, fraud, and insider trading, were markedly higher for financial services than other sectors at 26.5% vs. 20.0%. Given the nature of financial services, these concerns may be top of mind and therefore highly reported on but should be paid attention to given the seriousness of these issues.
Why This Matters: Risks to Reputation, Compliance, and Bottom Line
Poor governance, risk, and compliance policies are detrimental to the success of the financial services industry as it is under greater scrutiny due to its role in global economies. Higher allegations and slower case closure times (median of 24 days vs. 21 days for all industries) could erode public trust. Despite substantiation rates for named reports in financial services improving from 44% in 2023 to 50% in 2024, aligning with the all-industry median, organisations still face regulatory and compliance risks. Anonymous substantiation remains stagnant at 33%, showing a missed opportunity to validate critical reports. Furthermore, there are still operational inefficiencies. Financial services are slower to close cases compared to other industries, with a mean closure time of 43 days vs. 42 days for all industries. This slower case closure time may be, in part, due to the significantly higher number of business integrity reports that by their very nature take longer to thoroughly investigate.
Building a Stronger Risk and Compliance Program
Step 1: Foster a Culture of Transparency
• Encourage Named Reporting: While anonymous reporting is valuable, the higher substantiation rate for named reports (50% vs. 33% for anonymous) highlights the importance of building trust so employees feel safe reporting openly.
• Promote Workplace Civility: Address the sector’s workplace civility reports through training programs and leadership accountability.
Step 2: Streamline Case Management
• Invest in Technology: Reduce case closure times by implementing advanced case management systems to improve efficiency and tracking.
• Prioritise High-Risk Areas: Focus resources on areas with higher report percentages, such as business integrity (26.5%) and accounting/auditing (8.0%).
Step 3: Leverage Reporting Channels
• Expand Web Reporting: Financial services saw an increase in web submissions from 55% in 2023 to 61% in 2024, suggesting a shift in employee preferences, as well as highlighting the impact of working from home post-COVID. Invest in user-friendly web platforms to further enhance accessibility.
• Diversify Channels: While hotline reports declined from 27% to 25%, other methods, such as reporting in person, increased from 23% to 26%. Ensure employees have multiple, effective ways to report concerns.
Step 4: Benchmark Against Industry Standards
• Industry Medians: Regularly compare performance metrics (e.g., substantiation rates, case closure times) with all-industry medians to identify gaps and areas for improvement.
Business Case for Improvement
The key drivers for change are financial impact, employee retention, and competitive advantage. Financial services providers can thrive on faster case resolution and enhanced operational efficiency, while higher substantiation rates can reduce legal costs and regulatory fines. By addressing workplace civility issues, business leaders can improve morale and reduce turnover, saving recruitment and training costs. Plus, companies with robust compliance programs and ethical cultures are better positioned to attract clients and investors who prioritise trust and integrity.
A New Normal
Financial services leaders must take a proactive approach to risk and compliance by leveraging data insights, investing in technology, and fostering a culture of transparency. The trends are clear – the industry has room for improvement, and those who act now will be better equipped to navigate the evolving regulatory and ethical landscape.
