The rapid evolution of financial crime has led to Financial Crime 4.0, a term coined by GBG to reflect the impact of technology combined with the growing sophistication of financial crime syndicates and how this is influencing the ways financial institutions (FIs) interact with, protect, and build trust with their customers.
In a recent podcast interview with FutureCIO, Dev Dhiman, Managing Director of Asia Pacific at GBG, outlined how a completely new phase of financial crime has been driven by sophisticated and organised crime rings, the rise of social engineering attacks that target vulnerable and innocent individuals, and disruption to the banking and consumer lending sectors exacerbated by the pandemic and the rapid shift to digital financial services. Rather than this sphere becoming incrementally more complicated and damaging, the last year has seen financial crime take a leap that is forcing FIs to quickly and holistically reconsider their fraud, compliance, and identity verification approaches.
For CIOs, Dev explains, they would already be experiencing the dramatic shift this has had on their roles and extent of responsibilities. As well as historical remits related to minimising financial loss through technology and overseeing overall IT processes, CIOs are now involved in mitigating loss of consumer trust.
Furthermore, as the potential benefits and impacts of effective data management and analysis become increasingly apparent to business executives, CIOs are being tasked with driving ways for data to deliver faster, smarter, and more futureproofing decisions and solutions. This includes freeing data from internal silos, enabling it to enrich decisions across the business.
These needs have led to the design and delivery of the GBG Intelligence Center, which was recently launched to enable FIs to plug into different microservices to enhance their decision-making processes. Dev highlights that “many of our clients tell us we are helping them deliver multiple times in returns on investment they have made with us” by leveraging this platform which was purposely designed to ensure FIs are getting iteratively improved services and products as we continuously learn how financial criminals and fraudsters are adjusting their tools and techniques.
Dev concludes the conversation with FutureCIO by emphasizing the substantial size of the financial crime industry. As a multi-trillion dollar industry that reaches every corner of the world and is growing in sophistication each day, FIs cannot afford to become complacent in any aspect of their approach to tackling financial crime. Dev shares the example of when bots were commonly used for fraud and measures may have been in place to combat those attacks, however, criminals soon turned to human farms to more realistically emulate human behaviours, meaning previous prevention and protection approaches became instantly ineffective.
With this rapid pace of change, FIs need to take preventative and truly end-to-end approaches to developing, building, and sustaining digital trust with customers through secure and reliable service delivery.
To listen to the full interview, click the link: futurecio.tech/podchats-for-futurecio-financial-crime-from-the-perspective-of-the-cio/