Tag: financial resilience

risk
Company News

How US banks are redefining reputational risk

Reputational risk has long played a prominent role in how U.S. financial institutions assess and manage threats to their business models, earnings, and operational...
risk
Company News

Why ESG risk monitoring is vital for financial stability

The growing link between ESG risk and financial performance is becoming impossible to ignore. A new white paper by Opoint argues that environmental, social...
FinTech Scotland awards five startups £50,000 each to drive consumer-focused innovation
FinTech News

FinTech Scotland awards five startups £50,000 each to drive consumer-focused innovation

Five FinTech startups have each been awarded £50,000 to advance innovations that enhance financial inclusion, strengthen financial resilience, and improve consumer engagement in financial services.
Moneyhub unveils Savings Goals API Recipe to revolutionise financial wellness
Company News

Moneyhub unveils Savings Goals API Recipe to revolutionise financial wellness

Moneyhub has introduced a new Savings Goals API Recipe, leveraging Open Banking technology to assist customers in visualising and achieving their financial aspirations.
ESG
Company News

The critical role of ESG data in modern insurance underwriting

Environmental, Social, and Governance (ESG) data is quickly becoming a pivotal element in boosting underwriting profitability.
Neem secures $4m credit to expand earned wage access across Pakistan
FinTech News

Neem secures $4m credit to expand earned wage access across Pakistan

Neem, a leading embedded finance platform based in Pakistan, has recently enhanced its financial capabilities through a new $4m credit facility provided by DNI Group, a global investment firm active in 32 countries and a continuing investor in Neem.
Financial Services Firms Lag in AI Governance and Compliance Readiness, Survey Reveals Limited Testing and Formal Governance Creates Compliance and InfoSec Risks for Firms Adopting AI Despite eagerness to leverage artificial intelligence, financial services firms lack formal artificial intelligence (AI) governance frameworks, testing protocols, and third-party oversight, according to the 2024 AI Benchmarking Survey, a joint project of ACA Group’s ACA Aponix and the National Society of Compliance Professionals (NSCP), released today at the NSCP National Conference. The joint survey, conducted online in June and July 2024, gathered data from over 200 compliance leaders in the financial services industry around their firm’s use of AI tools and technologies, as well as compliance practices used to manage the risks AI tools and technologies present. According to the survey, firms are missing opportunities to better manage AI risks. It found that only 32% of respondents have established an AI committee or governance group, only 12% of those using AI have adopted an AI risk management framework, and just 18% have established a formal testing program for AI tools. Furthermore, most respondents (92%) have yet to adopt policies and procedures to govern AI use by third parties or service providers, leaving firms vulnerable to cybersecurity, privacy, and operational risks across their third-party networks. “We’re seeing widespread interest in using AI across the financial sector, yet there’s a clear disconnect when it comes to establishing the necessary safeguards,” said Lisa Crossley, Executive Director, NSCP. “Our survey shows that while many firms recognize the potential of AI, they lack the frameworks to manage it responsibly. This gap not only exposes firms to regulatory scrutiny, but also underscores the importance of building robust AI governance protocols as usage continues to grow.” Other notable findings include: 75% of respondents are exploring AI or using it internally, with 37% of firms reporting already having adopted AI tools for internal use and 38% currently exploring AI use cases. The most common use cases for AI were research, marketing, compliance and risk management, and operations support. Among respondents already using AI, 52% indicated they use public enterprise generative AI tools (such as ChatGPT), 50% reported using private/enterprise generative AI, and 43% are using machine learning. Compliance professionals reported that their primary goal for AI use in the compliance program is to improve efficiency (67%). Yet, as 68% of compliance professionals at firms who have already adopted AI tools reported that AI tools have had “no impact” on their compliance program, this goal has gone unrealized. Cybersecurity or privacy concerns around AI tools were identified as the top concern when integrating AI tools into compliance programs (45%). This was followed by uncertainty around regulations or regulatory examinations (42%), lack of talent with AI expertise (28%), and lack of tools that meet compliance programs’ needs (20%) as challenges to AI adoption. “The survey’s most concerning finding is the lack of policies governing third-party AI use,” said Carlo di Florio, President at ACA Group. “Regulators are heavily emphasizing third-party risk management, as we saw with the SEC’s Reg S-P updates, the SEC Cyber Rule, and the EU’s Digital Operational Resilience Act. ACA is actively helping clients build robust AI governance frameworks that align with regulatory demands, ensuring compliance and improving program efficiency. Without these measures, leveraging AI’s potential while remaining compliant will be challenging.” The full results of the 2024 AI Benchmarking Survey will be released during ACA’s and NSCP’s webcast on November 7, 2024. For more information, click here. About the Survey Respondents Governance, compliance, and risk professionals, including chief compliance officers, chief legal officers, and chief information security officers, at over 215 financial services firms of various size and RAUM (regulatory assets under management) participated in the survey. 40% of respondents were from firms with between 11 – 50 employees, with 42% managing between $1 billion to $10 billion in RAUM. Asset managers accounted for 43% of total respondents, with private market firms, alternative investment advisors, the second and third most common types of firms respectively.
B2B Payments

Israeli FinTech Melio secures $150m led by US company Fiserv

Melio, an Israeli payments platform, has successfully raised $150m in a funding round spearheaded by the strategic US investor Fiserv. The financing, which values Melio...
FinTech News

i80 Group leads $150m financing round for FinTech leader ID Finance

ID Finance, a leading FinTech based in Spain and Mexico, has recently concluded a significant financial milestone by securing $150m in debt financing. This round...
Industry Research

UK InsurTech funding doubled in 2023 defying global trends

UK InsurTech investment stats in 2023: • UK InsurTech companies raised a combined $395m in 2023, a 43% increase from 2022 • UK InsurTech deal activity...
1-in-3-women-investors-anticipate-becoming-isa-millionaires
FinTech News

1 in 3 women investors anticipate becoming ISA millionaires

Plum, a smart money app, has conducted research showing that one in three women between the ages of 18 and 44 believe they have the potential to become a millionaire via astute investments in an ISA. Women investors

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