A new Juniper Research study has found that global software spending on financial crime prevention tools will exceed $28,7billion by 2027, increasing from $22,1billion in 2023, according to a report in ITOnline.
The research predicted this growth of 30% will be driven by cybercriminals’ strategies of targeting the ever-growing transaction volume of payments over digital channels to maximise financial gain.
Financial crime prevention software enables financial institutions and merchants to automate fraud detection monitoring, KYC (Know Your Customer) and KYB (Know Your Business) procedures, and behavioral analytics to mitigate the risk of financial crime.
The research assessed leading financial crime prevention software platforms and evaluated them on a number of criteria, including depth and breadth of offerings, service innovation and future prospects; providing an extensive analysis of the competitive landscape in this dynamic market.
The Competitor Leaderboard ranked the three leading vendors as FICO, LexisNexis Risk Solutions and Verafin.
Research co-author Mélissa Amouny explains: “FICO demonstrates a broad set of capabilities, access to high-value data for crime mitigation and impressive AI-based analytical systems within its product portfolio. Competing vendors must prioritise frequent platform updates to keep pace with rapid cybercriminal innovations and maximise their market share.”
The research predicted that, by 2027, fraud detection and KYC systems will account for 88% of global financial crime prevention spending; enabling financial institutions to improve the mitigation of many common crime types, including account takeovers.
However, as digital payments increase in popularity and omnichannel experiences become commonplace, providing comprehensive financial crime prevention packages is becoming more complex, given the number of payment platforms and processes involved.
In response, the report urged financial crime prevention tool vendors to use AI for intelligent verification system orchestration, enabling enterprises to adapt to increasingly complex cyberattacks, choosing the right verification capability for each scenario.
However, many CEOs question whether critical preconditions for organisational empowerment and entrepreneurship – such as alignment to company values and leaders’ encouragement of dissent and debate – are present in their companies to tackle the increasingly complex risks organisations face. For example, only 23% of CEOs say leaders in their company often/usually make strategic decisions for their function without consulting the CEO.
Further, only 46% of CEOs say leaders in their company tolerate small-scale failures often/usually. However, more optimistically, nearly nine in 10 (85%) of respondents say the behaviours of employees are often or usually aligned with their companies’ values and direction.
Torn between the demands of short-termism and long-term transformation, CEOs say they are primarily consumed with driving current operating performance (53%), rather than evolving the business and its strategy to meet future demands (47%). If they could redesign their schedules, CEOs say they would spend more time on the latter (57%).
Moritz concludes: “The risks facing organisations and society today cannot be addressed alone and in isolation. CEOs must therefore continue to collaborate with a wide range of public and private sector stakeholders to effectively mitigate those risks, build trust and generate long-term value – for their businesses, society and the planet.”
