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Using Technology to Combat Financial Crime in Retail Banking (Strategic Focus)

Datamonitor
January 8, 2009
7 Pages - SKU: DFMN2090505

Abstract Table of Contents Search inside this report Related Reports

Introduction

The increasing amount of overlap and duplication of data, tasks and processes in their anti-fraud and anti-money laundering divisions is driving banks to seek synergies between compliance, risk management and security

Scope

The report looks at the regulatory requirements and growing exposure to risk that drive the adoption of anti-financial crime application and strategies
It provides insight into potentially emerging threats, and the increasing cost pressures that affect the anti-financial crime area
The technology and vendor landscape section offers an in-depth insight into the overall AML and anti-fraud architecture
The go-to-market section provides the necessary intelligence for vendors to formulate their marketing strategy

Highlights

The ongoing development of the digital economy brings with it unwanted side effects. The lack of counter-measures to unintended uses of new payment methods, customer data theft and a growing cyber-crime community is resulting in an increased number of financial crime events

In order to enhance their marketing messages, vendors should focus on addressing the most important customer paint points. For many banks, the top priorities when investing in anti-financial crime solutions are effective monitoring and detection capabilities, as well as strong workflow capabilities to support effective investigations

Reasons to Purchase

Gain insight into the challenges faced by retail banks seeking to develop their anti-financial crime practice.
Understand the technological evolution of anti-financial crime solutions and vendor offering landscape
Gauge how market conditions are shaping the development trajectory of the anti-financial crime discipline

Overview: Catalyst; Summary; Key Messages; Compliance remains high on banks' agendas, but banks need to focus on a risk-based approach; The evolving digital economy creates new money laundering and fraud threats; Banks need to focus on automation to increase the speed of processing, accuracy of detection and understanding of data; Growing costs are driving increased standardization of business processes; Vendors should align the positioning of their solutions with their clients' main hot-spots; Table of Contents; Table of figures; Table of tables; Market Opportunity; Introduction; Banks need to exploit the synergies between anti-fraud and anti-money laundering; Banks needs to address three major areas to combat financial crime; Banks need to comply with the growing amount of regulatory requirements; Banks need to focus on balancing rules- and risk-based approaches; The increasing burden of operational risk management; Banks are moving from a reactive to an intelligence-based, proactive approach; Evolution of the Anti-Financial Crime Discipline; The evolving digital economy creates new money laundering and fraud threats; Unregulated 'virtual world' transactions are an emerging challenge to combating financial crime; Customer data theft is an increasingly painful issue, due to the potential implications of ID theft; New windows of opportunity are opening for fraudsters during the current financial turmoil; Central and Eastern Europe and Central Africa have become epicenters of cyber-crime; Banks need to focus on automation to reduce error and increase deviation detection levels; Banks need to improve the accuracy of identifying financial crime events; Real time detection is an increasingly urgent requirement; Banks need to focus on data management to improve their ability to detect anomalies; Banks need to understand customer data to successfully implement their compliance and risk strategies; Growing costs are driving increased standardization of business processes; Banks need to balance accountability for risk and low-cost sourcing alternatives; Technology and Vendor Landscape; The sophistication of back and middle office technology is growing; Front office monitoring solutions have proliferated in response to demand; The market is still fragmented due to its immaturity; User-friendly AML and anti-fraud management tools increase workflow efficiency; Real-time detection capability enhances successful prevention; An increasingly cost-driven market drives adoption of a hosted delivery model; Go to Market; Vendors should align the positioning of their solutions with their clients' main hot-spots; Banks are seeking end-to-end solutions across financial crime types and investigation chains; MISs are forecast as one of the fastest growing areas of technology expenditure
APPENDIX: Definitions; Methodology; Further reading; Ask the analyst; Datamonitor consulting; Disclaimer
List of Tables: Table 1: Regulatory driversmajor implications; Table 2: Major industry associations or government agencies; Table 3: New payment methodsmoney laundering and terrorist financing risks
List of Figures: Figure 1: Which three financial crimes do you consider the highest priority to address?; Figure 2: Rules-based approach vs. risk-based approach; Figure 3: Evolution of financial crime detection and prevention management; Figure 4: Which areas of regulatory compliance will be driving IT project spending in 2009?; Figure 5: Worldwide monitoring and management of risk and compliance key figures; Figure 6: Overall AML and anti-fraud technology architecture; Figure 7: Analysis of payment flows; Figure 8: The anti-financial crime vendor offering landscape; Figure 9: Graphical user interfaceexample of a fraud analyst dashboard; Figure 10: Please rate the importance of the following objectives to your IT investment strategy in 2009; Figure 11: What are your organization's top three priorities when investing in anti-money laundering (AML) and anti-fraud solutions? (Rank top three in order of priority); Figure 12: Retail banking technology spending by business function globally

Using Technology to Combat Financial Crime in Retail Banking (Strategic Focus)

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