Banks have traditionally considered financial crime and fraud as two distinct categories of risk. But as these crimes become increasingly sophisticated, the traditional boundaries between them are becoming blurred, meaning that banks need to align their approach to dealing with them.
Many banks are now moving towards a more integrated approach to tackling these risks, taking a more holistic perspective to their processes. This streamlining of their business and technology architecture also support improved customer experience, better risk decision-making and cost efficiencies.
Taking a customer centric view of fraud by focusing on the customer journey will allow banks to predict where threats will appear along that journey, enabling them to develop controls around processes, rather than a traditional point controls approach to cybercrime. An integrated cross-function approach to tackling criminal activity will lead to efficiencies of scale, realizing the anti-fraud potential of the bank’s automated processes, data and analytics, and optimize their customers’ experience through fostering greater digital trust.
This article was originally published on McKinsey.com on October 1, 2019, and is reprinted here by permission.