IoT
Software // Information Management
News
2/17/2004
04:24 PM
50%
50%

Fraud Spurs European Analytic Spending

Compliance, risk management fuel investment, Datamonitor forecasts.

Driven by regulatory compliance and risk management needs, European financial services institutions will spend $4.8 billion on business intelligence and analytic technologies by 2006, according to a new report from Datamonitor, Business Intelligence and Analytics in European Financial Services. As with their U.S. counterparts, European FSI spending will be catalyzed specifically by anti-money laundering efforts, reports Daniel Lessner, associate analyst in London- based Datamonitor's financial services technology practice.

"Part of the reason why these areas will experience growth in the next few years is due to the recent issuance of regulatory requirements," says Lessner. "The deadline for putting the EU's anti-money laundering directive into national law has passed. Also, FSIs are facing domestic national regulations."

The study-which divided business intelligence and analytics into six solution areas, including customer intelligence, risk management, fraud, performance management, financial analysis and compliance-found that fraud will be the third-strongest catalyst of growth in spending. Tools purchased for fraud detection are expected to have a CAGR of 7.5 percent between 2003 and 2006.

Insurers will contribute to this trend despite the fact that "insurance carriers are still a little behind (other FSIs) when it comes to their use of analytics," relates Lessner. Their investment is driven by the fact that European insurers "are losing a lot of money because of fraudulent claims.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
The Agile Archive
The Agile Archive
When it comes to managing data, donít look at backup and archiving systems as burdens and cost centers. A well-designed archive can enhance data protection and restores, ease search and e-discovery efforts, and save money by intelligently moving data from expensive primary storage systems.
Register for InformationWeek Newsletters
White Papers
Current Issue
Top IT Trends to Watch in Financial Services
IT pros at banks, investment houses, insurance companies, and other financial services organizations are focused on a range of issues, from peer-to-peer lending to cybersecurity to performance, agility, and compliance. It all matters.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of July 17, 2016. We'll be talking with the InformationWeek.com editors and correspondents who brought you the top stories of the week to get the "story behind the story."
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.