As banks spend more on preventing financial crime, they also face new and competing priorities for their budget and resources. In our digital world, customers demand better, technology-led experiences, while growing sector convergence ushers in new non-traditional competitors that threaten banks’ market share.
If financial institutions are to compete with the world’s tech giants, can they afford to continue to focus their technology initiatives, best talent and investment on compliance? More banks realize it’s time for a new approach.
Seeking a smarter, tech-enabled financial crime strategy
As COOs expend more effort and resources tackling financial crime without making significant progress, more are recognizing the need for an increasingly strategic approach. But building the capabilities, systems and tools to go beyond compliance to proactively target criminal activity is not easy and most financial institutions struggle to free up the necessary capabilities, technology and staff.
No wonder that so many banks are seeking a more collaborative approach through managed services models – outsourcing specific elements of financial crime compliance or the entire function to third-party provider.