Latest Regulation & Compliance reports and research: Finextra Research

Impact Study

2024 Fraud Trends in Banking, Insurance, and Beyond

How generative AI is boosting fraud protection in an increasingly complex environment. As technology progresses, so do the capabilities of institutions to secure data and systems. Over 2024, the fraud landscape has been complex, and organisations must push the boundaries of innovation while maintaining a high security bar as the availability and democratisation of AI increases as we're going into 2025. The tidal wave of incoming regulation in the financial sector is an aspect that will help banking and insurance companies to safeguard their customers and data in the best way possible. Yet regulation alone does not address fraud – it’s up to individual organisations to leverage the potential of technology, and review their solutions, processes, and thus ensure compliance and safety. As fraud and regulation increase in the space, technology is one of the key factors that will help banks and insurance companies to address these increased fraud risks. Generative AI enables organisations to deliver hyper-personalised customer experiences, and combining these capabilities with carrier network insights can not only help them significantly reduce authentication fraud, but also ensure regulatory compliance. This impact study, produced in association with AWS and Vonage, examines the current fraud landscape across financial services, banking, and insurance, highlighting how generative AI and network APIs can help prevent fraud while enhancing the customer experience. Explore: Fraud trends in 2024 The impact of regulation Why data is the new gold How organisations can innovate with generative AI Best practices

31 October 2024 598 downloads

Event Report

Managing Fraud Risks with Synthetic Data

A Practical Approach for Businesses Services Industry The financial services sector is in a constant state of evolution, and so too are the challenges it faces, particularly in the realm of financial crime. This mounting issue has become a significant concern for institutions, customers and regulators alike. The key to addressing this lies in our approach to data - its quality, management, and applications. Harnessing the power of synthetic data and AI tools has become a pivotal factor in business transformation, particularly in addressing the issue of financial crime. The ability to streamline operations and enhance efficiency is a major challenge businesses face, but the introduction of synthetic data offers promising solutions. Synthetic data provides a comprehensive view of all types of crime, a feature that is crucial for global banks often grappling with segmented fraud activity. This broader perspective enhances the institutions’ capability to effectively fight financial crime. This report summarises the discussion had during a Finextra webinar, hosted in association with Red Hat, and explores: The role of synthetic data in combatting financial crime Implications of new regulation How synthetic data enhances crime detection A practical apprach for managing fraud risk

22 October 2024 278 downloads

Future of Report

The Future of Payments 2025 – Digital, Instant, Profitable?

A Sibos Special Edition The global payments landscape is in a period of rapid transition, with technologies and regulations making a serious impact. Yet looking to the future of the payments industry, how can we ensure that it is digital, instant, and profitable? While consumer behaviours continue to evolve in tandem with this. Artificial intelligence (AI), tokenised assets, Central Bank Digital Currencies (CBDC), Blockchain, and even more pioneering technologies are shaking up the payments systems all in their own way. Adding to this atmosphere of flux, is an developing regulatory framework which promises to alter this situation further. Regulators are facing an uphill battle attempting to legislate on emerging technologies while keeping consumers safe, and providing the best outcome for payment service providers (PSPs). As we move towards milestones like open finance and more rapid payments, there is a chance the payment ecosystem could look quite different within the next few years. Under these growing pressures, global payments organisations will need to ensure that they are able to bend and adapt to the circumstance, or risk snapping. Never has it been more important for PSPs to collaborate with each other, and regulators, to ensure the best outcomes. This Sibos 2024 special edition report, was produced with contributions from Accenture, Deloitte, EBA CLEARING, Finastra, FIS Global, Investec, J.P. Morgan, Oesterreichische Nationalbank, PPI AG, Swift, and Wise. It explores: The evolution of instant payments in 2025; The modernisation correspondent banking and cross border payments; Preparing the upcoming EU payments legislation; The key to successful digitalisation; The technology innovations reshaping the payments sector.

17 October 2024 1059 downloads

Future of Report

The Future of Embedded Finance in Africa 2025

Embedded finance is changing the payment landscape in Africa. The question now is: what will it take for embedded finance to truly scale across Africa? The global embedded finance market is set to grow beyond $228 billion by 2028 according to Juniper Research. As this market matures and consumer confidence in the technology grows, this will likely prove to be a significant chunk of global financial services. In Africa, this emerging trend has the potential to unlock new economic opportunities. As a less mature market, it is not as hindered by legacy payments systems, making it ripe for payment innovation from embedded finance. It has the potential to reshape the continent’s current payments landscape, broaden innovation opportunities, and drive financial inclusion. As a market Africa is very adaptable to different technologies, and embracing of newer, more agile services. A lot of the population to the majority of their banking through their mobile phones, making embedded finance fit seamlessly into financial worlds of the populace. Yet there are many factors which will alter and develop the ability for embedded finance to take hold. This Finextra report, sponsored by Kora, received contributions from Binance, Indelible Inc., Mojaloop Foundation, and Nikulipe. It explores: Making embedded cross-border payments work in Africa; Unlocking the opportunities of embedded e-commerce in the African market; Embedded finance: Encouraging African financial inclusion; Why personalisation in embedded finance is the next step for African fintech; Regulating Africa to encourage embedded finance innovation.

10 October 2024 318 downloads

Impact Study

Adding GenAI To Your Fraud Prevention Strategy

We explore the numerous benefits of generative AI for fighting fraud. In an instant payment, cross-border world, fraud is more nefarious and prevalent than ever. Recent research shows that worldwide, APP (Authorised Push Payment) fraud now represents 75% of all digital banking fraud on a dollar-value basis. By 2026, losses are expected to reach $5.25 billion – revealing that APP fraud is one of the biggest threats to financial institutions (FIs) globally. The next pre-emptive step in the fight against fraud is generative AI (GenAI), which uses Large Language Models (LLMs) to generate new content like text, audio, video and even new computer code. While GenAI is still in the fledgling stages of adoption within fraud prevention, it will soon become a true differentiator. But how exactly are scammers deploying AI to their advantage? What are the best ways to incorporate GenAI into a fraud prevention strategy? How should consumer privacy be managed? This impact study answers these questions and casts an eye over the current fraud landscape, the regulatory implications, and the vital role of innovation. This Finextra impact study, produced in association with Outseer, explores: The evolution of scams; The role of AI; Technology and the impact of generative AI; How to embed AI in the best way possible; Addressing regulatory challenges and concerns; And more.

27 September 2024 427 downloads

Survey

The Global Fight Against Trade-Based Financial Crime

Broken inside, broken outside: Uncovering the internal weaknesses and external pressures fuelling a $1.6 trillion challenge. Trade-Based Financial Crime (TBFC) is a global issue, draining $1.6 trillion annually from economies—funds that could otherwise fuel development, build infrastructure, and stabilise financial systems. Instead, these resources are diverted into criminal networks that operate across borders, exploiting the very institutions meant to protect global finance. This is a crisis that goes beyond numbers; it strikes at the core of trust and stability in the financial world. This global survey, conducted in the summer of 2024, revealed the alarming extent to which financial institutions remain unprepared in the face of the growing threat of TBFC and sheds light on the significant challenges, technology gaps, and fragmented risk management strategies that enable significant financial crime. Input from leaders at ING and ITFA reinforces the critical role of technology in combating TBFC, while also acknowledging the operational challenges that remain. Implementing AI-driven solutions at scale is proving to be a significant obstacle for many institutions, with the timeline for action growing ever tighter. Download this Finextra survey, produced in association with Eastnets, to explore: Why TBFC is a growing global crisis What internal roadblocks institutions are facing An investigation into the external challenges of combatting TBFC Recommendations for what risk leaders should do next And more Click here to join us for the Finextra webinar, Global Trade Based Financial Crime: Where Trade and Payments Meet, and hear from our panel of industry experts discuss the finding from this survey and the current state of trade-based financial crime globally.

25 September 2024 300 downloads

Impact Study

Mastering the Transition to ISO 20022

Strategies for Compliance and Automated Testing in Financial Services With a regulatory storm incoming, the need for testing solutions – whether they be generic or tailored – is greater than ever before. As the financial services industry undergoes a vast amount change, particularly around the introduction of new rails on the ISO 20022 framework, these tests are proving vital for international banks and other institutions in the chain. Yet, for this sector change is not a binary phase; it is almost always underway. To tackle this challenge in a sustainable way, automation is key – giving institutions the confidence to weather the storm of regulation with ease. With the ISO 20022 standard now a prerequisite, organisations must convince their business leaders that the migration mandated for November is not just an IT project – it is fundamental to company-wide strategy. This impact study, produced in association with Unifits and featuring expert commentary from BearingPoint and Accenture, explores how institutions can master the transition to ISO 20022 and streamline compliance through automated testing. Discover: The impact and evolution of testing The benefits of testing automation The strategic role of technology and compliance Trends to watch: New rails and regulations Real-world case studies And more.

16 September 2024 503 downloads

White Paper

Beyond Tomorrow In The Capital Markets

Technology has long been transforming the capital markets industry, but the tides are changing for what is considered success. Now more than ever, firms need to prioritise operational resilience. Technological advances are indisputably reshaping how firms in the capital markets operate, however, as the reliance on technology grows, so does the impact of glitches and outages when they occur. Take the CrowdStrike global outage, for example, which caused an estimated $1.15BN and $140M in financial losses for the banking and financial sectors respectively. The consecutive outages expose the fragility of technical infrastructure and underscore a need for better operational resilience across the capital markets. It also reiterates the importance of preparing for the EU’s Digital Operational Resilience Act (DORA), implementing uniform operational resilience rules for financial entities throughout Europe, and its equivalents elsewhere. This Finextra whitepaper, produced in association with CJC, explores: The challenges in the capital markets industry; How institutions can address these challenges; Ensuring future resilience by bridging the skills gap; Real-world case studies; And more.

09 September 2024 219 downloads

White Paper

APIs, Automation, and AI

An Arsenal to Defend Against Card Transaction Fraud Fraudsters are no longer individuals who are looking to infiltrate gaps or weaknesses in how our businesses are set up. They are expert technologists and strategists that steal customer data, take over accounts and break into tough security measures. Between 2023 and 2027, merchants are expected to lose a total of $343 billion to online payment fraud, driving home the point that the time is now for technology to be leveraged to reduce card transaction fraud, which is growing in numbers and complexity. APIs, automation, and AI are all integral to an effective fraud mitigation strategy in 2024. This Finextra whitepaper, produced in association with Mastercard, discusses how these technologies – if used in the right way – can support financial institutions evolve to emerging threats with increased speed and accuracy.

12 August 2024 356 downloads

Impact Study

Payment Fraud in 2024: Who is Liable?

Fraud is a billion-dollar business in the Instant Payments era. Statistics show that ecommerce fraud is predicted to exceed $48 billion globally by the end of 2023 alone and could exceed $362 billion between 2023 and 2028. In 2024, banks will not only contend with the changing liability landscape, but the upcoming adoption of ISO 20022 as well. Both represent a historical shift in the financial services industry. To prepare for a higher degree of liability in a data-rich environment, banks need to address the holistic landscape of fraud mitigation. This Finextra impact study, produced in association with NICE Actimize, addresses the changing liability landscape and what banks need to do to prepare for regulatory changes and increased fraud protection. We cover: Shifting liability and the impact of new PSR regulation ISO 20022’s impact on the financial industry Financial industry priorities in 2024 And more.

08 July 2024 640 downloads

Future of Report

The Future of UK Fintech - 2015-2035

An IFGS Special Edition UK Fintech Week 2024 With UK Fintech Week's flagship event - Innovate Finance Global Summit (IFGS) - returning for its 10th anniversary, Finextra and Innovate Finance have partnered to publish this report, which acts as your go-to-guide to everything you need to know about financial services and technology in the UK. ‘The Future of UK Fintech: 2015 – 2035: An IFGS Special Edition’ includes commentary from the brightest and best across the fintech ecosystem, discussing and debating the crucial issues facing the sector now and in years to come. This includes key insights from industry experts from Cogo, EY, Konsentus, Marqeta, Standard Chartered Ventures, and Zopa Bank. Scoping out the next decade to come, this report explores the agenda topics below and more: The Next Decade of FS and Innovation: What Lies Ahead Fintech Beyond FS Borders: How Fintech is Impacting other Industries and Sectors UK and the World: Keeping our Crown while Learning from Others Transformative Technologies: Opportunities and Risks Users of Tomorrow: The Next Generation of Consumers The Shifting Ecosystem: Who Will Lead?

15 April 2024 715 downloads

Survey

Definitive Differentiators - Forging a future-proof payments model

Over the last few decades, banks have been forced to reconsider their business model for transaction services. During the era of low-interest rates, the focus shifted to transaction revenues, and while the pendulum is now pivoting back to utilising the balance sheet for revenue growth, the amount of new regulations impacting the industry is ever-increasing. New technology and market regulation have fostered innovation and new market entrants. This “perfect storm” is exposing a number of potential threats for banks, but also new opportunities to expand the share of customer wallet and time to market, and drive cost efficiency through standardization. This Finextra survey report, produced in collaboration with Tietoevry, explores the key factors driving changes to payment models for different financial institutions and how they can wield continued or differentiated success in the evolving landscape.

18 March 2024 600 downloads

Impact Study

APP Fraud Liability: A Guide for Banks

Fraud is running rampant. The UK Government's 2023 'Fraud Strategy' report highlighted that fraud now accounts for over 40% of crime, yet receives less than 1% of police resources. More needs to be done to ensure that the consumer is protected. This is why, as per the Financial Services and Markets Bill, all PSPs will now be required to reimburse fraud victims from October 2024. In light of these upcoming changes, banks need to reassess how they manage liability associated with APP fraud and develop new methodologies in order to investigate and mitigate fraud more effectively. This Finextra impact study, produced in collaboration with Form3, gives banks a guide to tackling the new APP fraud liability landscape. It highlights: Risk scoring payments Implementing the right intelligence Considering false positives Ensuring explainability And more.

06 March 2024 563 downloads

Event Report

Mastering DORA: A Strategic Guide to Operational Resilience

In the rapidly evolving fintech world, robust, reliable, and resilient systems are more crucial than ever. The industry must grapple not just with the challenges of instant payments and external cyber threats, but also with the advent of new players, running on varied infrastructures and offering unprecedented uptime levels. DORA, introduced by the European Union, provides a dedicated framework for the EU financial sector, aimed at protecting digital operational resilience—a vital aspect of contemporary business operations. This Finextra webinar report, hosted in association with NTT DATA, offers a strategic guide to mastering DORA. It covers: Understanding DORA and its impact on the financial services industry Why operational resilience is key to business continuity Key aspects of implementation And more. Download our webinar report now to learn more. Click here to watch the webinar on-demand now - DORA: The drive towards better operational resilience.

28 February 2024 594 downloads

Impact Study

AI and Cloud: The Proving Ground for Regulatory Resilience in 2024

The current macroeconomic landscape is marked by exceptional volatility and uncertainty, posing challenges to traditional models in the financial services sector. Despite this new challenging market context, some financial institutions continue to hit pause on using AI and cloud technology, falling behind the curve. Leveraging new technologies can no longer be a zero-sum game. This impact study explores: How can AI and cloud be leveraged to improve back-end processes, rather than just front-end experiences; How migrating to the cloud can fuel new use cases; The regulatory impact of PSD3, DORA and more; The benefits of data sovereignty and data governance; And more. Download this Finextra impact study, produced in association with Microsoft Azure, to learn more.

22 December 2023 658 downloads