20 September 2017
Visit http://response.ncr.com

Legacy tech will become barrier to fighting financial crime - survey

30 May 2017  |  10550 views  |  0 Risk on chalkboard

More than 90% of senior financial crime professionals working in the UK banking industry are worried that their firms' legacy technology will become a barrier to fighting crooks over the next couple of years.

Of 168 financial crime and AML compliance professionals quizzed by LexisNexis Risk Solutions, 44% say evolving criminal methodologies are the biggest single emerging risk they face.

In the midst of Brexit, geo-political change is seen as the biggest single future financial crime risk by 37% of respondents in the retail banking arena and 34% of investment bankers. Half of those questioned agree that Brexit will have both positive and negative impacts on the ability of UK financial institutions to fight financial crime. 30% believe Brexit will have a positive impact, 14% say it will have a negative impact, while the rest remained unsure.

Whatever the threats, respondents are lacking confidence in their technology's ability to combat them: 92% have concerns that their organisation’s legacy technology will become a barrier to fighting financial crime over the next one to two years. In addition, 87% cite disparate technology systems that don’t interoperate or process data properly as a significant challenge, whilst 87% also say their business isn’t able to enhance their technology fast enough to counter evolving criminal methods.

This problem is compounded by evolving regulatory environments, with increased regulations requiring investment in new technologies; 60% of respondents cite this as a root cause of cost increases.

Dean Curtis, UK MD, LexisNexis, says: "For those tasked with combatting financial crime it can feel as if they are fighting twenty first century criminals with twentieth century tools. Our report shows financial crime professionals do not believe the industry is doing enough to leverage the advantages of technology to fight financial crime.

"Whilst the FCA is assisting the acceleration and adoption of technology to fight financial crime through its regulatory Sandbox, more needs to be done. Practitioners must adopt a more strategic view of technology to enhance operational effectiveness as regulation has rapidly evolved in the last 15 years and simply increasing staff numbers is not a sustainable approach."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Big Data and distributed ledgers key to beating financial crime - FCA chief

Big Data and distributed ledgers key to beating financial crime - FCA chief

16 November 2016  |  11452 views  |  0 comments | 11 tweets | 20 linkedin
Banks reach tipping point in fight against financial crime - research

Banks reach tipping point in fight against financial crime - research

03 December 2015  |  11231 views  |  2 comments | 10 tweets | 14 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.temenos.comvisit www.sibos.comvisit www.capgemini.com

Top topics

Most viewed Most shared
JPMorgan Chase chief says he would fire traders dealing in bitcoin for stupidityJPMorgan Chase chief says he would fire tr...
10553 views comments | 16 tweets | 29 linkedin
Equifax hack: Visa and Mastercard flag 200k compromised credit cardsEquifax hack: Visa and Mastercard flag 200...
10144 views comments | 6 tweets | 17 linkedin
HSBC switches on selfie payments in ChinaHSBC switches on selfie payments in China
9699 views comments | 21 tweets | 39 linkedin
Dutch bank sentences teenage DDoS culprit to community serviceDutch bank sentences teenage DDoS culprit...
9039 views comments | 6 tweets | 3 linkedin
UAE banks pool cyber security dataUAE banks pool cyber security data
7496 views comments | 5 tweets | 4 linkedin

Featured job

Find your next job