The explosive growth of financial crime shows no sign of waning. In a recent survey of financial industry professionals, 2/3 of respondents reported that, in the past year, their organization experienced an increase in overall fraud rates 2, and 59% indicated they expect fraud levels to continue to rise.
The advancing sophistication and scope of financial crime – compounded by a lingering, pandemic-induced economic upheaval – has sent operational costs skyrocketing.
For U.S. financial institutions (FIs), the estimated price tag for financial crime compliance has reached close to $46 billion – almost doubling since 2019 ($26.4 billion), according to a recent report released by Zoot partner Lexis Nexus. 4
Banks’ estimated compliance spending costs have increased
by more than 60% compared to pre-financial crisis levels. 2