Survey: 2025 Global Risk Decisioning Survey
Survey: 2025 Global Risk Decisioning Survey
The results highlight:
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Their risk decisioning and fraud challenges across the customer lifecycle
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Decisioning investment priorities
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AI opportunities
Join Provenir for an exclusive business lunch tailored to senior banking executives. This intimate event offers a unique opportunity to explore how AI-driven decisioning can help mitigate risks, elevate customer experiences, and navigate the complexities of today’s financial landscape.
28th January
Café Belge, DIFC, Dubai
1:45 PM – 3:45 PM (local time)
Kick off the afternoon with a warm welcome from Provenir and an opportunity to network with industry peers. Enjoy a specially curated menu while connecting with thought leaders and fellow executives.
Engage in an interactive session focused on shared experiences, challenges, and innovative solutions for the banking sector. This collaborative discussion will provide actionable insights to enhance your strategies.
Wrap up the event with closing insights and enjoy additional networking time to solidify connections and spark further conversations.
Spaces are limited for this exclusive gathering. Don’t miss your chance to gain invaluable insights and elevate your approach to AI-powered decisioning in banking.
According to a 2023 survey by MuleSoft and Deloitte, large enterprises now use an average of more than a thousand applications across their organization.
So what exactly is tech bloat, and how can you slim down your stack? Read on to find out more.
Referring to the excessive accumulation of outdated, redundant, or highly complex tech systems that weigh down an organization, tech bloat in financial services is becoming increasingly common. This phenomenon stems from a variety of causes, but the biggest tends to be an abundance of legacy systems that have been patched and repurposed over the years. Of course many financial services providers require very specific needs to be addressed (including everything from core banking systems and risk assessment models, to cybersecurity software, workflow automation, customer relationship management, financial planning and forecasting, data sources, fraud and identity management, loan origination software, and payment processing). As the list of needs (and related tech) grows with your organization, so does the bloat.
But many of the software solutions you have will overlap in functionality, leading to inefficiencies in both operation and cost. A survey by Freshworks shared that “54% of IT professionals say their organization pays for software” that never gets used. And often these systems are not integrated with each other very well, creating numerous silos of information, complicating workflows, and making data access tricky. Not to mention the fact that extensive customizations and add-ons over the years, while useful at first, can quickly turn into burdens, limiting flexibility and making maintenance and updates difficult. And of course those updates are critical, because with constant regulatory shifts, financial institutions do regularly need to update their systems, which can result in a quickly tangled web of temporary fixes that, you guessed it, add more bloat (not to mention leave you more vulnerable to everything from data breaches to lapses in compliance).
According to Freshworks, “the cost of trying to use unhelpful technology amounts to more than $84B annually in wasted time in the US alone, or $10M every hour of every day.”
Any of these consequences should be enough to address your tech bloat problem, but put them all together and you can see it’s not just about security or reducing operational costs – it’s fundamental to unlocking your potential for sustained innovation and sustainable growth. Streamlining your tech infrastructure allows you to overcome these challenges and position yourself for future success and customer loyalty.
Consider the case of Provenir customer NewDay. Some of their existing systems were proving costly in terms of release times and updates, and were due for decommissioning. By implementing more holistic risk decisioning software, they were able to significantly reduce processing time and improve quote response times.
second decisioning processing time
SLA for availability
improvement in speed of change
faster quote response
1. Conduct a Technology Audit: |
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2. Streamline and Consolidate: |
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3. Invest in Modern, Integrated Solutions: |
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4. Enhance Data Management and Governance: |
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5. Foster a Culture of Continuous Improvement: |
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6. Partner with the Right Tech Providers: |
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Part of fighting the bloat battle is selecting the right technology partner – one that can enable flexibility, scalability, and an end-to-end decisioning platform that you can build and grow your business on. Provenir’s AI-Powered Decisioning Platform brings together the key capabilities you need to turn decisioning into a differentiator, allowing you to deploy accurate, fully automated risk decisioning across the lifecycle, while also gaining actionable insights to optimize strategies and enhance performance across the entire organization. Featuring solutions for data, decisioning, case management, and decision intelligence, across onboarding, fraud & identity management, customer management and collections, Provenir’s platform is a one-stop solution that eliminates silos, brings teams together, and enables sustainable, customer-centric growth.
The connected vehicle payments market could reach $600 billion by 2030.
As we’re already witnessing, Generative AI will continue to have a massive impact. It is certainly making life easier in many ways (chat bots, personalized email and marketing campaigns, dynamic customer management, etc.), but it will also mean greater ease in testing products and models as new data sets are generated (which used to take an incredible amount of time when done manually). Generative AI could also help test different use cases for products and UAT testing (which is traditionally very difficult and time consuming). We can also use Generative AI to translate videos and documents in real-time, or even do live translations in meetings, increasing the serviceable markets of financial services providers who may have previously been limited by language or region.
AI in Banking market was worth $6794.27 million USD in 2023, and is expected to reach $36765.29 million USD by 2023 (CAGR of 32.5%)
Quantum computing promises to fundamentally change the capacity to process information by performing calculations at speeds unattainable by traditional computers, enabling the ability to execute complex risk simulations and fraud decisioning and detection algorithms. This speed enables quicker, and more informed risk decisoning for financial services providers. Quantum algorithms could simulate market reactions to economic events or stress test financial portfolios under a variety of conditions, providing insights at a speed and scale that just isn’t possible with today’s computation methods.
Globally, the financial services industry’s spending on quantum computing capabilities is expected to grow 233x from just US$80 million in 2022 to US$19 billion in 2032, growing at a 10-year CAGR of 72%
Offering a decentralized and secure platform that can transform traditional banking infrastructure, credit approvals, and monitoring systems, blockchain technology can make big waves in risk decisioning, with advancements in peer-to-peer lending, smart contracts, and fraud screening measures. With transparent and fixed record-keeping, the technology can streamline processes and reduce operational costs, automating credit decisioning and other transactional processes. And with blockhain’s inherent transparency, the reliability of financial data is improved, greatly enhancing fraud and identity management. When it comes to the increasingly important aspect of identity verification, blockchain can also be useful – enabling Self-Soverign Identity (SSI) and Decentralized Identifiers (DIDs). SSIs allow individuals to own and control their own digital identities, stored on a blockchain for maximum privacy and security, while DIDs use unique, blockchain-based identifiers that can be verified across different platforms without exposing personal data.
There is around $52 billion of value locked in DeFI, and global blockchain spending is expected to hit $19 billion this year
134 countries and currency unions, representing 98% of global GDP, are exploring a CBDC
The integration of the Internet of Things (IoT) in banking could provide continuous data streams to credit risk models, offering real-time insights into a potential borrower’s financial activities and habits, and ensuring more dynamic (and accurate) credit risk decisioning and lower default rates. For instance, data from smart home devices could inform lenders about a customer’s energy consumption patterns, which might correlate with financial stability or risk levels. This level of integration can lead to even more personalized risk assessments, potentially improving credit access and inclusion while mitigating risks for lenders.
IoT In Banking And Financial Services Market size is projected to reach USD $30925 Million by 2030, growing at a CAGR of 50.10% from 2023 to 2030.
Financial institutions are the second most impacted sector based on the number of reported data breaches; ransomware attacks on financial services increased from 55% in 2022 to 64% in 2023.
Global sustainable finance product issuance totalled $717 billion in the first half of 2023.
By the end of 2024, Gartner predicts 75% of the global population will have its personal data protected by modern privacy regulations.
Western Europe and Asia Pacific will potentially account for 50% of digital ID verification spend by 2028.
Technology has always had the power to drive significant change in all aspects of society, and future tech advancements will continue to alter how financial institutions operate and interact with their customers. A common theme running through all of these innovations is the ability to personalize products and offerings, highlighting the extreme importance of the customer experience. A prime example of this is dynamic, responsive onboarding – where financial services providers are tailoring the onboarding experience to individual customers by matching data checks (including identity verification, AML, KYC, and more) to the event risk and the responses of the customer. Depending on the consumer’s answers in an application, the actual application itself will change dynamically – populating additional responses required or minimizing friction with fewer questions if lower risk is determined.
Today’s consumers will no longer stand for long wait times, inadequate customer service, and mass-marketed products. Instead, a competitive edge requires rapid response times, omnichannel offerings, customized products, and frictionless experiences – all enabled by automated, real-time decisioning.
But the concept of ‘decisioning’ itself will also evolve. Currently financial services providers utilize specific triggers that result in a decision being made, whether that’s from the end-consumer applying for a product, or from a provider proactively analyzing data and making a decision to offer a new product. But with the increased availability of data, extremely fast processing speeds, and the enhanced use of AI to analyze data and behaviors, decisioning will become much more fluid. Rather than trigger points causing a decision, are we in for a future where decisions around customers and products/services are just continuous? Seamless? Always happening? This too will result in more hyper-personalization and a customer-centric approach in all aspects of financial services.
Done well, personalization at scale for banking customers can lead to annual revenue uplifts of 10%
As these technologies develop, Provenir continues to lead the charge, offering an advanced decision intelligence platform that is adaptable, efficient, and strategically forward-thinking. Discover why choosing Provenir is the best decision for managing risk in a technologically evolving landscape.
Unleash the power of Equifax alternative data and AI-powered credit risk decisioning from Provenir
There’s a lot of pressure for today’s financial services providers, as consumer debt (and delinquency rates) continue to rise. So how can you ensure easier access to credit for your creditworthy customers? In this blog from our Data Marketplace partner Equifax, they highlight how to boost operational efficiency with the one-two punch of Equifax data and Provenir’s AI-powered decisioning platform.
NEWS
The European Parliament has finalised a provisional agreement on groundbreaking artificial intelligence regulations paving the way for the world’s first legislation on AI, pending a vote by the legislative assembly in April.
Known as the AI Act, these new regulations aim to establish boundaries for a technology widely used across various industries, including banking, automotive, electronics, aviation, as well as for security and law enforcement purposes. Our own David Mirfield, VP of Product Management, shared his perspective on the impact the Act will have and the challenges organizations will still face.
What is a decision engine and how does it help your business processes?