UK banks are ahead of those in Canada and US for integrating their fraud and financial crime compliance systems and activities, according to new research from Ovum, on behalf of analytics software firm FICO.
The results found that only 25% of US banks have a common reporting line for both fraud and compliance, while 60% of Canadian banks do.
Additionally, the survey found that 72 per cent of US banks surveyed have strategic plans for further integration. This is slightly above the global average, which is set at 71 per cent of banks. The UK is leading the way, with 82 per cent of banks indicating they have integration strategies to either fully integrate functions of share resources where synergies exist.
FICO vice president of fraud solutions TJ Horan said, “Banks are asking a fundamental question: Is the current approach to tackling financial crime sustainable or should they seek a more integrated approach between fraud and anti-money laundering (AML) compliance?
“U.S. banks are all too familiar with the challenges presented by a disconnected approach, but struggle to manage high workload volumes and ensure detection rates are high.”
Another finding in the report was that 45% of US banks see ensuring detection rates are high as the top pain point in financial crime compliance objectives. This is compared to the rest of the world, of which 42% thought the biggest challenge was high levels of false positives.
The full report, which can be found on the FICO platform, compiled responses from more than 100 retail banks across 10 countries.
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