We often describe the financial services industry as being in the midst of a technological revolution, i.e. Open and Embedded Banking, AI, blockchain, stablecoins, CBDCs, you name it. But stepping back, one might wonder: has the sector truly transformed? Despite the buzz, the fundamentals of financial services remain largely unchanged. Incumbent banks still dominate most markets (with exceptions like Nubank in Brazil or Revolut in select countries), and the mechanics of many financial products and transactions would look familiar to someone from 20 years ago. Digitalization has undeniably changed the industry: Branches gave way to online portals, then mobile apps. Cash and chip cards were replaced by contactless and mobile wallets. Customer onboarding and credit origination moved from paper-based to digital workflows, increasingly embedded in journeys led by other industries. Yet, many of these shifts were reactionary, not proactive . Take Covid-19: it accelerated digital ...
At financial institutions, insider threats and internal fraud are serious issues. Globally, the Association of Certified Fraud Examiners estimates that fraud costs organizations about 5% of their annual revenue , amounting to a staggering $5 trillion per year . Insider fraud is believed to account for up to 40% of these costs around $2 trillion annually . The average cost per incident is $412,000 , making this type of fraud not only widespread but also extremely damaging. Insider fraud is defined as " the deliberate misuse or misappropriation of the employing organization’s resources or assets for personal benefit. " It’s committed by a malicious insider, such as a current or former employee, contractor, or partner, who uses their authorized access to compromise sensitive systems or data. These actions pose serious risks to confidentiality, integrity, and trust. Financial institutions are especially vulnerable due to ...