Fraud Spurs European Analytic Spending - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Software // Information Management

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.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

News
How CIO Roles Will Change: The Future of Work
Jessica Davis, Senior Editor, Enterprise Apps,  7/1/2021
Commentary
A Strategy to Aid Underserved Communities and Fill Tech Jobs
Joao-Pierre S. Ruth, Senior Writer,  7/9/2021
Slideshows
10 Ways AI and ML Are Evolving
Lisa Morgan, Freelance Writer,  6/28/2021
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
Slideshows
Flash Poll