Nearly half (43%) of financial services expect the cost-of-living crisis to increase the risk of financial crime and fraud over the next 12 months.
This research, compiled by LexisNexis Risk Solutions, also found that 30% of financial services organisations believe anti-fraud and financial crime systems aren’t developing fast enough to keep up with criminal techniques.
Similarly, 32% believe fraudsters are spending more time targeting victims.
To address this rising threat, 69% of finance organisations say they will invest more in technology over the next 12 months. Six-in-ten (59%) are prioritising the emerging concept of financial crime and fraud risk orchestration.
Another finding from the report was that, on average, financial services providers rely on five external vendors for data sources or solutions to prevent fraud and financial crime across their customer onboarding and lifecycle – with half of firms (49%) highlighting that having multiple solutions in place helps to increase protection.
Speaking on the findings, LexisNexis banking expert Eddie Vaughan said, “Banks and FinTechs are evolving from risk management to risk orchestration as they strive to better connect the systems and data sources used to combat fraudulent and criminal activities.
“Orchestration provides an end-to-end solution for customer onboarding and ongoing monitoring, incorporating anti-money laundering screening, transaction monitoring and case management, all within a single platform. It overcomes silos and manual processes to deliver more informed insights that enable quicker and increasingly accurate assessments of risk.”
Of those surveyed, 74% were already aware of risk orchestration platforms. Of these, 48% identified the ability to automatically track customer transactional behaviour over time and flag anomalies as one of the main benefits. Similarly, 46% said it was being able to bring all customer checks into a single, unified, digital platform.
A recent report from Lloyds Bank found that UK financial institutions are turning in increasing numbers to technology to combat the rising cost-of-living crisis. 72% of respondents believe that investing in technology will lessen the effect of cost increases.
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