Enterprise Fraud Solutions, 2023: Market Update and Vendor Landscape
In a solutions market still largely driven by the large, complex frauds occurring in investment banking, financial institutions and vendors are developing their technological capabilities to address an ever-evolving landscape of fraud. As regulators focus in on the importance of model risk management, firms and vendors are having to integrate, test and explain more complex models, and deal with challenges around the vast quantities of data they must now analyze and interpret.
The increasing ‘commodification’ of AI, in the form of consumer-friendly apps such as ChatGPT, could trigger a new wave of fraud, while the increasing speed with which companies and individuals can carry out payments is creating more opportunities for criminals to act faster than some fraud systems can handle. Finally, many firms are beginning to see past the hype surrounding the all-pervasive cloud, realizing that its undoubted benefits – scalability, flexibility and security – must be balanced with their own specific requirements, many of which may not align with what the cloud has to offer.
These dynamics are generating several themes in the vendor landscape, as technology providers lean into the dynamics of specificity, scale and connectivity, while also focusing more attention on model agility, analytics and multi-channel capabilities.
