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Thursday, January 19, 2023

Nigerian firms, others to spend $22.1 billion on financial crime prevention software in 2023: Report

The figure is expected to further grow by 30 per cent, surpassing $28 billion by 2027.

• January 18, 2023
Financial software
Financial software [Credit: Software Advice]

A recent research predicts that Nigerian firms and their global counterparts will this year spend $22.1 billion on crime prevention software.

The figure is expected to further grow by 30 per cent, surpassing $28 billion by 2027. 

According to a Juniper Research Study, hackers’ techniques of focusing on the steadily increasing volume of payments made through digital channels in order to maximize financial benefit will be what drives this growth of 30 per cent. 

Financial institutions and businesses can automate fraud detection monitoring, KYC (Know Your Customer) and KYB (Know Your Business) protocols, and behavioral analytics to reduce the risk of financial crime by using financial crime prevention software.

The study further explained that by 2027, fraud detection and KYC systems will be responsible for 88 per cent of the money spent on preventing financial crime globally.

This will allow financial institutions to better mitigate many common crime types, such as account takeovers.

However, given the variety of payment systems and procedures involved, offering complete financial crime prevention packages is getting increasingly difficult as digital payments gain popularity and omnichannel experiences become the norm. 

In response, the report urged manufacturers of financial crime prevention tools to implement intelligent verification system orchestration using Artificial Intelligence.

This would allow businesses to adapt to increasingly sophisticated cyberattacks by selecting the appropriate verification capability for each situation.

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