Is it time for risk orchestration?

According to UK Finance’s Half Year Fraud Update, UK banks and financial services providers helped prevent just under £584 million from being stolen from their customers in the first six months of 2022 – in a large part thanks to the application of advanced, technology-led data and risk management systems.

A new study by LexisNexis Risk Solutions revealed that, on average, financial services providers rely on five external vendors for data sources or solutions in their efforts to prevent fraud and financial crime across their customer onboarding and lifecycle – with half of these firms (49%) highlighting that having multiple solutions in place helps to increase protection.

These technologies deliver invaluable insights and intelligence that allow organisations to reduce risk across the entire customer lifecycle – from onboarding, ongoing monitoring and offboarding.

In many legacy tech stacks, complex and multitudinous checks are carried out in isolation, using separate systems that often don’t speak to each other. Interpreting and knitting together these results into a unified view of risk can be difficult and time-consuming and usually requires the combined effort of teams of individuals.

Enter risk orchestration: by integrating and automating the customer onboarding process, these checks are conducted in the context of a single end-to-end journey, producing a unified risk score that is much simpler to interpret and act upon. This means quicker decisions and faster onboarding, leading ultimately to happier customers and a competitive edge over rivals.

With this multitude of checks and often complex compliance requirements, alongside the ongoing challenge of minimising fraud, many banks and the wider finance sector are starting to see risk orchestration as a way to achieve a competitive advantage in their operations.

Download this free eBook to learn more about risk orchestration and its application in practice.