Fraud dangers prompt rise in security spending
The growing danger of fraud is driving up investment in compliance, risk management projects, analytics and business intelligence software in the finance sector, according to a new report.
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Analyst Datamonitor predicts that overall spend on business intelligence and analytics will grow at a compound annual growth rate (CAGR) of almost 7% between 2002 and 2006, driven by a boom in anti money-laundering initiatives.
The study – Business intelligence and analytics in European Financial services – predicts that, for compliance and risk management technologies combined, investment will amount to $1.7bn in 2006. Investment in business intelligence and analytics will hit $4.8bn by 2006, it said.
Spend on fraud detection technologies are expected to experience a CAGR of 7.5% over the next three years, reaching $420m in 2006.
Daniel Lessner, Datamonitor financial services technology analyst said in a statement: ‘The business intelligence and analytics industry, as most of the IT space, has seen some slower years recently.
‘The financial services sector – traditionally the largest market for business intelligence and analytics – is going to play a pivotal part in fuelling this recovery in the coming years as banks and insurance companies are pressed to satisfy regulatory requirements and meet pressure from shareholders to provide a more complete picture of risk exposure, compliance and profitability.’