Since 2007, Operational Risk, in collaboration with BAE Systems, has conducted a series of surveys covering key industry trends in financial crime.
This year’s research has once again provided valuable insight into the key trends and the state of the market. It serves as an invaluable tool for senior managers in Financial crime to compare their investment priorities with their peers.
The survey shows continued investment in anti-fraud and compliance solutions. However, the focus and priorities of financial institutions appear to reflect the uncertainty of global markets and the growing impact of money laundering and counter-regulatory measures.
A shift in priority
The survey asks financial institutions about the priorities of senior management within their organisation. Insider fraud has previously ranked as a top priority for respondents, however this year saw a shift in priority for industry executives; with a new focus on online fraud.
The survey revealed that investment in AML remains significant, with 51.5% of respondents expecting budgets to increase over the next three years.
Financial crime experts have also predicted benefits for financial institutions combining fraud and AML resources to create efficiencies and identify crossover – a notion supported by an indicated increase in consolidated fraud and compliance solutions.
The impact of Cyber attacks
With the increasing number of high-profile cyber attacks - and the increasingly documented connection with financial crime - this year’s survey questioned the perceived and likely impacts of a successful cyber attack on financial institutions.
The full Operational Risk & BAE Systems Financial Crime Survey 2016 reveals:
- How investment will change in the next 12 months
- Priorities for senior management in terms of risk
- In which areas FIs are using In-house solutions vs. third-party vendors
- Industry perception on the cost of a cyber attack