Recent research from FIS and Oxford Economics reveals that businesses suffer an astounding loss of approximately $98.5 million annually due to cyberthreats, fraud, regulatory complexities, and financial inefficiencies. Surveying over 1,000 executives across six industries, the study identified nine key sources of disharmony within the money lifecycle, highlighting cyberthreats (88%), fraud (79%), and regulatory challenges (65%) as the most detrimental. While many firms grapple with these issues, those adopting modern technologies like embedded finance see a tangible return on investment and improved sales growth.
The findings further illustrate that when money moves, friction is palpable. A significant 51% of respondents acknowledged heightened tension during financial transactions, with many, despite adopting automated systems, experiencing monthly transaction delays. Concerns over cybersecurity loom large, as 37% report daily cyberattacks and over half feel inadequately equipped in fraud detection, pointing to a dangerous gap in financial security training.
Having dedicated fintech teams appears crucial for addressing these disruptive challenges. 85% of leaders from such firms felt well-prepared to tackle various frictions and acknowledged increased revenue post-fintech solution integration. In stark contrast, the insurance sector lags in this area, with only 52% of surveyed leaders indicating they have a fintech team.
A notable enthusiasm for AI and automation emerge from the survey, with 55% of leaders investing in these innovative technologies despite facing hurdles such as cost and integration complexities. Optimism shines through as many foresee these tools enhancing agility and opening new customer acquisition pathways.
The “Harmony Gap” study offers valuable insights into the monetary consequences of financial disharmony, underscoring the necessity for companies to harness emerging technologies. With a proactive approach, businesses can navigate economic uncertainties, create value, and unlock their potential for growth ahead of the upcoming Emerald conference in May.
A new study reveals that businesses lose approximately $98.5 million annually due to cyberthreats, fraud, and regulatory complexities. Key findings include the identification of major issues such as payment friction and operational inefficiencies, as well as the benefits of adopting technologies like embedded finance. Companies with dedicated fintech teams are better equipped to overcome these challenges, leading to increased sales and growth opportunities.
In conclusion, the FIS and Oxford Economics study illuminates the significant financial burdens faced by businesses due to cyberthreats, fraud, and other operational inefficiencies. Addressing these challenges through modern financial technologies and dedicated fintech teams can not only mitigate losses but also foster growth and innovation. As organisations embrace AI and automation, they stand poised to enhance efficiency and navigate the complexities of today’s financial landscape effectively.
Original Source: www.businesswire.com
