In a groundbreaking study by FIS and Oxford Economics, businesses in the UK are losing approximately £70 million annually, translating to about $89.6 million, due to inefficiencies in the money lifecycle. This research highlights the impact of operational, financial, and technological disruptions, conducted through surveys of over 1,000 C-suite leaders across diverse industries in the US, UK, and Singapore.
The research reveals that tensions surrounding money movement cause significant stress within UK businesses, with 47% of respondents indicating heightened challenges during financial transactions. Cybersecurity threats, fraud, and regulatory complexities exacerbate these issues, leading to operational bottlenecks and significant financial losses. Cyberthreats alone result in an annual hit of £24.0 million ($31.5 million) for UK firms, underlining the pressing need for improved security measures.
In response, UK businesses are accelerating the integration of financial technology solutions to streamline operations. Approximately 63% of UK companies describe their implementation progress as advanced, with many adopting automated payment processing (76%) and AI-driven fraud detection (57%). Employee training has become a priority too, with over half of respondents acknowledging its effectiveness in reducing lifecycle disruptions.
Firdaus Bhathena, CTO at FIS, emphasizes the importance of adapting to the fast-paced digital transformation, noting that financial harmony represents an opportunity for businesses rather than just a necessity. Bianca Fisher of Oxford Economics further highlights the significance of this research in pinpointing how financial disharmony hinders growth and innovation, advocating for the adoption of solutions like AI and automation to enhance efficiency and security.
FIS and Oxford Economics reveal UK businesses lose £70 million annually due to financial inefficiencies. Cybersecurity threats and fraud are significant contributing factors, prompting firms to adopt advanced financial technologies and improve employee training to combat these challenges. The study highlights the importance of transitioning towards financial harmony to enhance efficiency and foster growth.
The research by FIS and Oxford Economics illuminates the substantial financial losses experienced by UK businesses due to inefficiencies in the money lifecycle, averaging £70 million annually. Cybersecurity threats and fraud are significant contributors to this disharmony, compelling companies to adopt advanced financial technologies and employee training measures. By embracing these solutions, businesses can mitigate risks and transition towards greater operational harmony, fostering resilience and long-term growth.
Original Source: ffnews.com
