UK Firms Reaping Rewards of Tech Investment in Fighting Financial Crime

Rising Compliance Costs: Compliance costs for UK financial services firms rose by 12% in 2023, totaling £38.3 billion annually.
Tech-Driven Investment: Investments in technology have driven compliance costs up by 33% since 2021, focusing on advanced analytics and AI.
Efficiency Gains: Automation in KYC and identity verification has significantly reduced costs, benefiting firms despite increased customer volumes.

Enhanced Financial Crime Controls: Increased investment in technology has led to more thorough financial crime controls, improving the overall security of financial transactions.
Cost Efficiency through Automation: Automation has resulted in cost reductions in key areas such as KYC and AML screening, showcasing the benefits of tech adoption.
Continued Tech Investment: Firms are prioritizing further investment in AI and machine learning, anticipating continued efficiency and effectiveness in financial crime detection and prevention.
Regulatory Collaboration: The sector’s collaboration with regulators is essential to ensure the successful integration of AI into compliance processes, promising long-term cost benefits.

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