The rise in demand for mobile financial services includes peer-to-peer (P2P) payments and transfers via mobile number, and e-wallet and mobile wallet services, according to the report by fraud technology specialist firm GBG.
“The ongoing shift to online and mobile banking and transactions, particularly among superannuation, financial planning and education enterprises, has been accelerated by the pandemic,” says Carol Chris, Regional General Manager Australia at GBG.
“The unpredictability of the current market and how it is evolving is driving a need among Australian FIs to increase readiness to be agile in how they future-proof themselves with fraud technology.
“The groundswell in online service delivery and use, combined with the ability to make instant payments over the NPP and the rise in fintechs, makes the opportunities for fraudsters and financial criminals more abundant and hazardous than ever, pushing FIs to ensure they have truly pre-emptive and end to end fraud management technology platforms in place for 2020 and onwards.”
The report also found that Australian financial institutions are prioritising spending on compliance technology as a means of strengthening customer trust and appeasing increasingly vigilant regulators, with the report showing that $104 million on average will be spent on purchasing new fraud prevention technology in 2020-2021.
According to the report, the “fraud technology readiness” of Australian financial institutions is lower compared to APAC, with significantly lower penetration of fraud management and endpoint threat systems.
The Australian spending on compliance technology contrasts with the average across APAC of A114.1 million, with the highest average estimated fraud budgets being in Thailand at A130.7 million, China at A125.2 million and Indonesia at A121.8 million.
According to the report more than a third (36%) of Australian financial institutions see compliance management as a key challenge - and 42% say managing the increasing costs of compliance is the biggest challenge inhibiting the introduction of new digital offerings.
Other findings by the report include:
- Millennials and GenZ will be key target segment for unique digital offerings for 33% of FIs in 2020-21
- End to end fraud management platform readiness is a key differentiation to driving digital product preference for 70% of Australian FIs. While only 20% have an existing implementation of an integrated end to end fraud and compliance platform solution, this is relatively higher than the 6% average of APAC FIs
- While the unification of data across cyber, fraud, and compliance functions can help negate repeat fraud attacks, 58% of respondents indicated their cyber security, fraud control and compliance functions are completely independent functions with no sharing of insights. This lack of alignment is much higher than APAC, where only 43% of respondents indicated the three functions are still operating in silos
- Social engineering attacks led by scams (44%) and stolen-IDs (40%) will dominate fraud prevention priorities of Australian FIs in 2020-21