Develop a strategy for financial crime management solutions that are losing their appeal among APAC financial institutions

SINGAPORE–(COMMERCIAL THREAD) – GBG (AIM: GBG), the global experts in digital identity, helping businesses prevent fraud and meet complex compliance requirements, today announced the release of the IDC InfoBrief “Build, Buy or Rent: Evaluating an Effective Strategy to Combat Rising Financial Crime and Fraud in Asia / Pacific. “APAC’s financial institutions (FIs) continue to grapple with financial crime management strategy and investment – to take full ownership and build internal systems, purchase a solution, or use the managed services of ‘a solution provider. This IDC InfoBrief, commissioned by GBG, is intended as an advisory guide to help financial institutions (FIs) perform due diligence in assessing critical parameters and making a decision for their anti -next generation fraud (next generation).

GBG recently commissioned IDC to conduct a market research study on “Next Generation Financial Crime Management: Finance, Banking and E-Commerce in APAC” with over 800 respondents across 8 key APAC markets, including Singapore, Malaysia, Indonesia, Vietnam, Thailand, Hong Kong, Australia and the Philippines. Research reveals that more than one in four FIs (26 percent) in APAC currently use a self-built origin / application fraud management system. However, the preference for in-house built anti-fraud solutions is expected to decline, where only 21% choose a build strategy to deploy their original next-generation fraud system.

This downward trend in favor of in-house integrated solutions is also observed for next-generation transactional fraud systems, end-to-end financial crime management platforms, anti-money laundering solutions (AML ) / compliance, Know Your Customer (KYC) / identity verification. machine learning / AI and orchestration solutions.

Dev Dhiman, Managing Director, APAC, GBG said: “Building, buying or renting is an age-old dilemma facing start-ups and established financial institutions. This conundrum has been the subject of even more debate with the pandemic accelerating digitization and transforming fraud risk management processes. We are now in an era of smart technology and hyperconnectivity, which allows fraud and financial crime to increase in complexity and sophistication. As access to technology democratizes and time spent on mobile devices increases, fraudsters can more easily exploit innovative and orchestrated tactics to compromise consumers and organizations.

“Financial institutions need to carefully consider their investment strategy in managing financial crime. Fundamentally, their approach must be sustainable in terms of IT resources, rapidly scalable to develop new channels and business models, have the longevity to handle the complexities of existing and emerging fraud typologies, and provide a balance for a better customer experience ” , continues Dhiman. .

Among FIs that have deployed solutions built in APAC, 85% indicated that they would replace the systems they built within three years, with one in four indicating a replacement every 12 months. Financial crime solutions typically take around three months to establish a fraud detection and prevention pace after deployment is complete. Organizations would generally continue to expand fraud prevention to more departments or channels, maximize the efficiency of fraud detection accuracy, and minimize friction with customers. For systems that use machine learning, there is a continuing need to train and retrain models to detect new types of fraud. Having to regularly restart the establishment of a central system would create gaps in the effective management of fraud.

Michael Araneta, Associate Vice President, IDC Financial Insights said: “Financial institutions are now operating in digitizing consumer markets and they face new risks of financial crime and fraud. Their response must be new, ultimately enabling them to react quickly and effectively to limit the negative impact on both the institution and the client. To achieve this speed and efficiency, they will need to pool a set of technological solutions, skills and intelligence, all from trusted technology partners. The choice to build, buy or lease these solutions is up to the bank depending on its business, but the effort should be more intense than ever, to effectively combat modern financial crimes.

GBG has been recognized as one of the World’s Top 100 FinTech Providers by IDC Financial Insights, a leader in the Corporate Fraud category in the Chartis RiskTech Quadrant® 2021 and the industry’s top machine learning / AI innovation. year by Asia Risk Awards this year.

To download the IDC InfoBrief “Build, Buy or Rent: Evaluating an Effective Strategy to Combat Rising Financial Crime and Fraud in Asia / Pacific” Click here.

To learn more about GBG’s end-to-end financial crime solution, click here.

About GBG: GBG (AIM: GBG) offers a range of solutions that help organizations quickly validate and verify the identity and location of their customers. Our cutting-edge technology, data and expertise help our customers improve digital access, deliver a seamless experience, and build trust so they can transact online quickly, securely and securely. Based in the UK and with over 1,000 team members in 16 countries, we work with 20,000 clients in over 70 countries. Some of the world’s best-known companies rely on GBG to deliver digital services and keep the economy moving, from US e-commerce giants to Asia’s biggest banks and European home brands. To learn more about how we help our clients build trust with their clients, visit www.gbgplc.com/apac, follow us on Twitter @gbgplc or LinkedIn.