Enterprise Fraud Management: From Silo Integration to BPO

Report Summary

Enterprise Fraud Management: From Silo Integration to BPO

Financial institutions across the globe will spend over US$254 million on third-party vendors of fraud detection software by 2008, up from US$174 million in 2005. With over 40% to be spent in the U.S., enterprise software platforms and business process ou

Gwenn Bézard
Co-Founder and Research Director

Boston, MA, May 25, 2005 – In a new report, Enterprise Fraud Management: From Silo Integration to BPO, Aite Group asserts that U.S. financial institutions are facing pressure to eliminate their silo-ed approach to fraud prevention and detection. In the coming three to five years, the research firm anticipates that large institutions will gradually roll out both homegrown and off-the-shelf enterprise fraud management platforms across their silos. In the meantime, business process outsourcing of enterprise fraud management will emerge as a viable option.

Over the past decade, banks have invested in both technology and human resources to control fraud. These methods have brought some success, but as the race continues against fraudsters, banks - small to mid-size institutions in particular - will find it increasingly unappealing to replicate investments on a matter in which they do not compete with other institutions. As vendors begin to introduce comprehensive and affordable BPO offerings to the market, banks will gradually embrace that model. 

"Enterprise-wide BPO offerings are likely to materialize first with ID verification. It will be critical to secure a solid position in the ID verification space for those vendors who want to gear up for the upcoming BPO opportunity," comments Gwenn Bézard, a Research Director with Aite Group and author of the report.

Profiled technology vendors include ACI Worldwide, Carreker, Fair Isaac, Retail Decisions, and Searchspace.

This is a 41-page Impact Report. Clients of Aite Group's Fraud & AML service can download the report.

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