Financial firms keen to use AI but their data isn't ready
A new study into AI readiness shows that while financial services firms are ready to adopt AI, they still have work to do in terms of improving data quality and modernizing systems.
The study from Indicum finds many financial services firms are hindered by legacy data systems and outdated IT infrastructure, which often lack the real-time processing and data quality capabilities required for effective AI deployment.
Over half of UK financial institutions suffer third-party supply chain attacks
New research from Orange Cyberdefense shows that 58 percent of large UK financial services firms suffered at least one third-party supply chain attack in 2024, with 23 percent being targeted three or more times.
The research suggests that firms must re-evaluate how they assess third-party risk. 44 percent of FS institutions only assess third-party risk during the initial supplier onboarding stage, while a similar proportion (41 percent) perform periodic risk assessments. Crucially, just 14 percent follow the gold standard of continuously assessing risk and using dedicated third-party risk management tools.
The AI arms race: How machine learning is disrupting financial crime
The financial services industry is in the midst of an unprecedented AI arms race. Criminal organizations are getting smarter, using cutting-edge tech to launch elaborate attacks on financial systems. In response, financial institutions (FIs) are turning to AI and machine learning (ML) to level the playing field. That’s right -- FIs are keeping pace with their criminal counterparts, thwarting malicious activity much more reliably and efficiently.
Having spent my career at the intersection of finance and technology, I've seen the constant race to stay ahead of evolving criminal operations. Rules-based systems, while foundational, simply can't match the speed and adaptability of modern financial crime. But now, through advanced pattern detection, adaptive defense mechanisms, and dramatically improved accuracy in identifying suspicious activity, AI is fundamentally reshaping how we fight financial crime -- and winning.