[ad_1]
As recession anxiety and geopolitical tensions cloud the global economic outlook, some of the analytics and artificial intelligence leaders and SAS’ foremost industry experts predict what consumers, financial firms and those who protect them can expect.
predictable returns
“2023 will not be the year of chaos. In fact, 2023 will mark the return of some degree of predictability. The economic impact of this once-in-a-lifetime pandemic is predictable: pent-up demand, strained Labor market and supply chain struggles. The combination of these factors is bound to fuel inflation, prompting rate hikes as the obvious policy response. As the world continues to grapple with the aftermath, delinquencies are expected to increase across retail and business portfolios, and market volatility will increase. Powerful situational analysis, near real-time monitoring and general organizational agility will dominate,” said Anthony Mancuso, Director of Risk Solutions Consulting.
Differentiated Customer Engagement
“The ability to make decisions across the entire customer lifecycle will become an important competitive advantage in winning and retaining customers. Considering holistic decision making across risk, fraud and marketing, all on a single architecture, creates a unique Customer experience, what sets one apart from the competition. I predict that rising fraud losses and the push for automation will drive centralization of disparate solutions and integration of decision-making capabilities across onboarding and the entire customer journey,” Fraud and Security said Stu Bradley, senior vice president for intelligence.
‘Zombie firms’, flash crashes force economic reckoning
“In the face of historically high sovereign debt and ongoing geopolitical instability, rising interest rates and a stronger dollar portend trouble. A series of sovereign defaults could occur in 2023, while liquidity challenges in government bond markets could trigger a flash crash, exacerbating the market vulnerability.
“Together, these factors will force an economic reckoning, especially among so-called ‘zombies’ – companies that do not make enough profits to service their debts – as borrowing becomes more expensive and less abundant. Lack of strong balance sheets Companies with the ability to generate and cash flow will face a high risk of default, and those that survive tend to prioritize earnings quality and cash flow sustainability over growth rates,” said Stas Melnikov, Head of Venture Capital Portfolio.
Banks double down on ESG progress
“Amid ongoing economic turmoil, one might expect financial institutions to pull back on environmental, social and governance (ESG) initiatives – but there are signs that most banks are staying the course or doubling down. A recent survey of 500 banking executives showed that Three quarters (76%) believe financial services have an obligation to address social issues, but 64% of executives believe banking is lagging other industries in advancing ESG goals.
“It is clear that financial services leaders recognize the opportunity to strengthen long-term resilience even as they weather the coming storm. With ESG as a North Star, banks may emerge from this recession more fiscally decisive – and those leading Banks that embrace the ESG revolution will undoubtedly reap the additional rewards as they further increase customer trust and loyalty in the process,” Global Financial Services.
Cryptocurrencies Fuel Searches for Criminals
“While recent events will certainly drive heightened regulatory scrutiny, cryptocurrencies are not dead. Crooks will continue to use cryptocurrencies to conceal their nefarious activities and launder their ill-gotten gains. In turn, law enforcement and regulators will Better honing their ability to understand illicit financial flows and exchanges, improving the industry’s ability to quickly and accurately triangulate human trafficking, drug dealing, money laundering and other criminal activity,” said Dan Barta, Chief Corporate Fraud and Financial Crime consultant.
The Rise of APIs and Cloud Computing
“As the changing relationships between risk factors expose the limitations and weaknesses of traditional risk management systems, financial institutions will turn to APIs and other tools to patch or replace identified weaknesses. Speed to market for cloud computing and targeted solutions will become even more important as agencies first seek to ‘plug the holes in the dam’ before tackling large-scale replacement of legacy systems,” said Martin Zorn, managing director of risk research and risk research. Quantitative solution.
Consumers at risk from climate change
“As people better understand the financial risks posed by climate change, banks will start to price them into mortgages and business loans. Be prepared to pay higher prices if you live in an active hurricane, flood and fire zone, said Naeem Siddiqi, Senior Consultant, Risk Research and Quantitative Solutions.
Anti-Money Laundering Modernization Wave
“Financial intelligence units (FIUs) have been in operation for a full year. Criminals and tax evaders have become one of the greatest “innovators” of the cryptocurrency boom, and there is a huge gap in the effectiveness of suspicious activity reports. With Global conflicts continue to dramatically increase sanctions on bad actors, and FIUs will rethink how they operate – from their legal authority to the IT systems that support their mission. My focus is on Singapore, Germany and Canada, which may be A pioneer in sparking the first wave of modernization that will spur broader AML innovation focused on artificial intelligence and real-time capabilities,” said Shaun Barry, Global Director, Fraud and Security Intelligence.
Exit globalization presents opportunities for fintech upstarts
“Amid continued contraction of supply chains and mounting political and social pressure, we will see a massive rollback of the globalization that has driven the world for the past 30 years. As business ecosystems shift to more regional operations , global financial services firms will adapt their strategies and operations to develop quickly and pragmatically. This may present new opportunities for geographically aligned fintechs and insurtechs to integrate with traditional industry players, increasing agility for all and the ability to innovate. As the business environment becomes less hospitable, such partnerships will be an invaluable lifeline for the tech upstarts. Those who go it alone will struggle to survive,” said Norman Black, Director of Insurance Solutions EMEA Say.
Financial services sees renaissance in scenario analysis
“Uncertainty around climate change, geopolitical instability, energy crises, and other factors will spark a renaissance in scenario management and analysis. Far from being a static output, scenarios are the dynamic output of dedicated risk models. Scenario creation, scenario perturbation, and Topics such as risk analysis relevant to a given scenario and reverse engineering of scenarios will be able to answer questions left unanswered by traditional approaches,” said Christian Macaro, Principal Risk Solutions Consultant. — trade arab news agency
[ad_2]
Source link