International Markets
June 25, 2025
Survey reveals global firms lose nearly $100 million annually to financial process inefficiencies, driving investment in AI, cybersecurity, and embedded finance.
In today’s rapidly evolving marketplace, organisations face unprecedented challenges in managing their financial operations. These challenges seem to revel in their speed and frequency, often arriving in a “gang” at the door. From navigating geopolitical fragility and global trade wars to dealing with interest rate and currency volatility, the financial landscape is fraught with tension points. Add to this the ever-growing sophistication of cyber threats and fraud, as well as the relentless march of regulatory change, and these factors can significantly impact an organisation’s bottom line and overall success.
The stakes have never been higher, and the need for proactive, strategic responses has never been more critical.
The global money lifecycle lends itself (as many things–the power of three) to be divided into three distinct stages: Money at Rest, Money in Motion, and Money at Work. In an ideal world (wouldn’t we all like to see more of this…), money should move seamlessly across these stages, resulting in cost efficiencies for businesses and a smooth experience for customers (yey) or harmony. However, as we’re all too aware, the reality is often far from the ideal. Numerous impediments and obstructions, including fraud, cyber threats, human errors, operational inefficiencies, and regulatory complexities, combine to create disharmony in the financial lifecycle, resulting in significant financial losses and other issues.
The so what – we’re all used to battling adversity and challenges, we just see them as opportunities that we need to overcome, problems that need to be solved, well, this one presents itself as the Gordian knot of the financial industry, just one that also includes a Rubik’s cube with 12 sides (go look this up, it’s not for the light hearted). But they are just that, problems that want to be solved, and we are, after all, very good at solving problems. I mean, we sent a man to the moon in the 1960s. So, how hard can this be, then?
In a recent survey (The Harmony Gap Report from FIS & Oxford Economics) of 1,000 senior business and technology leaders from large organisations in the U.S., the U.K., and Singapore, it was revealed that organisations lose an average of $98.5 million annually due to disharmony in their money lifecycle. Cyber threats and fraud are (unsurprisingly) identified as the top sources of tension, with cyber threats alone causing an average annual loss of $31.7 million.
That’s a lot of money—think what we could do with that as reinvestment into ageing technology stacks, modernisation, innovation, change, that’s a far more exciting place to spend this money.
To address these challenges, organisations are prioritising investments in financial technology. Improving cybersecurity defences and enhancing operational efficiency are identified as top priorities (this should come as no surprise). Investments in emerging technologies, such as AI and machine learning, are being made to address vulnerabilities and drive innovation. Nearly one in four executives surveyed said that improving their cybersecurity defences was their top technology priority over the coming year. The investment in AI, to remain at the forefront, should seek to be bold, but with the investment into these new and emerging (although not new, AI is constantly evolving and emerging, Agentic AI being the most recent of changes, advancing on from GenAI) means investment into those resources who know how to push the envelope and boundaries. Without the use cases, is AI anything more than smart automation? And that, indeed, is not new. To the victor will go the spoils of war – and the war on AI will not go quietly into the good night.
While it is true that AI investments have led to enhanced fraud detection, risk management, and the hyper-personalisation of customer offerings. They are not without their challenges and pitfalls; high implementation costs, lack of in-house expertise, and integration challenges are significant obstacles. Despite these challenges, organisations remain optimistic about leveraging AI and automation to achieve their business objectives. Embedded finance solutions are also gaining traction, as consumers demand more, and their desire not to break the journey or have what they see as unnecessary friction in the journey, organisations are reporting improved customer retention and loyalty through these investments, which again seek to keep the customer at the heart of what we do.
Organisations can experience tangible benefits from their fintech investments and collaborations. Enhanced collaboration, accelerated digital transformation, and new customer acquisition are some of the key benefits. The key to cooperation with fintechs is competitive collaboration; the advances that can be achieved are numerous, and the competition that can stem from this collaboration moves us to the next innovation paradigm. Improved employee productivity, market expansion, and a culture that supports innovation can be unintended outcomes and benefits that are waiting to be harvested.
For those that can see some of their own challenges laid bare with “disharmony”, there are ways to see a clear path, and find your way along the yellow brick road, to the emerald city; and for organisations to address disharmony in their money lifecycle:
By strategically investing in technology to address sources of losses in their financial lifecycle, organisations can significantly reduce risk, enhance operational efficiency, and drive sustainable growth. This approach underscores the vital importance of proactive measures in navigating the complexities of the financial landscape and identifying opportunities for financial upside amid uncertainty.
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