The market for risk management systems is expected to grow by 13%

The global market for financial crime risk management technology is predicted to grow by 13 % to $3.75bn by 2012, according to a report.

According to the authors of the report: ‘Recent high profile scandals involving internal and external fraud have highlighted the vulnerabilities of the financial services industry. Furthermore, the current global recession is expected to increase the frequency of internal fraud, security breaches and false accounting.’

The report concluded that despite the mission-critical nature of financial crime risk management systems, most financial institutions continue to have a silo-based point-solution approach.

The norm is to have multiple anti-fraud and anti-money laundering systems, across different business units, communication channels and using multiple databases. This creates extra expense, inefficiencies and data quality issues across enterprises, said Chartis, which analyses the risk technology market. It inhibits a firm's ability to create the links and intelligence required to combat the most sophisticated criminals, added Chartis.

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