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UK banks take an accelerated approach to merge fraud, financial crime operations

Thursday 12 September 2019 10:40 CET | News

Most UK banks plan to integrate their fraud and financial crime compliance systems and activities, in response to new criminal threats and punishing fines, according to Ovum.

The survey, conducted on behalf of FICO, found that 60% of banks across the regions surveyed have strategic plans for further integration, either to fully integrate functions or share resources where synergies exist. A further 20% are actively seeking to obtain synergies even if they are only taking a tactical approach.

While the majority of banks across all regions have strategic plans for convergence, nearly half of UK banks reported a strategic plan to fully integrate fraud and AML compliance functions, compared to 26% of all other banks. 

FICO’s survey found for UK banks top pain points in meeting financial crime compliance objectives such as:

  • Managing high workload volumes due to defensive approach (e.g. SAR filings) – 47%

  • High levels of false positives – 47%

  • Ensuring detection rates are high – 35% High levels of false positives – 35%

Among main technology-related challenges for anti-financial crime, British banks experience:

  • Performance of technology platforms – 53%

  • Use of multiple systems across operational processes – 35%

  • Speed to change technology systems – 35%

Current level of integration between fraud and financial crime compliance functions for UK banks:

  • Investigation systems – 53% very integrated

  • Detection systems – 35% very integrated

  • Controls – 25% very integrated

Ovum surveyed over 100 retail banks on their priorities, challenges, and plans for financial crime, looking to assess the maturity of the sector in tackling financial crime, and ambitions towards integration. Respondents came from the UK, the US, Canada, South Africa, the Nordics, Germany and Austria.


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Keywords: FICO, Ovum, research, financial crime, study, AML, technology, banksing, retail banks, UK
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