Financial Crime World

Financial Crime Data Spending Expected to Increase, Survey Reveals

A recent survey of financial institutions has revealed that spending on financial crime data initiatives is expected to increase in the next financial year. According to the findings, 34% of respondents plan to increase their spend by more than 25%, while 28% expect to see an increase between 26-50%.

Priorities for Financial Institutions

The survey found that data quality and lineage, as well as data control and governance, are the top two priorities for financial institutions when it comes to investing in data initiatives. Data science and analytics came in third, with 62% of respondents citing it as a high-priority area.

Technology Investments

When it comes to specific technologies, advanced analytics and robotic process automation (RPA) are expected to see significant investment, with 83% of respondents planning to invest in one or both of these areas. This is likely driven by the need for cost reduction and optimization, as well as the desire to drive insights and reduce operational inefficiencies.

Drivers of Investment

The survey also found that cost is the primary trigger for investment in data initiatives, with 57% of respondents citing it as the number one driver. Regulatory requirements and risk management costs are also significant factors, with 31% of respondents citing compliance as a major source of funding.

Data Maturity

In terms of data maturity, the survey revealed that most financial institutions feel they are on the path to standardizing their data management capabilities, but more needs to be done to leverage the full potential of data across all financial crime domains. Organizations at higher levels of data maturity are looking to invest in intelligent technologies such as RPA, while those at lower levels are focusing on analytics to drive insights and improve operational efficiencies.

Key Takeaways

  • 34% of respondents expect to increase their spend on financial crime data initiatives by more than 25%.
  • Data quality and lineage, and data control and governance are the top two priorities for financial institutions.
  • Advanced analytics and RPA are expected to see significant investment, with 83% of respondents planning to invest in one or both areas.
  • Cost is the primary trigger for investment in data initiatives, cited by 57% of respondents.
  • Compliance is a major source of funding, cited by 31% of respondents.

Industry Insights

“The findings of this survey suggest that financial institutions are increasingly recognizing the importance of high-quality data in their fight against financial crime,” said [Name], a partner at EY. “By investing in advanced analytics and RPA, they can better monitor financial crime and drive business success.”