Financial technology (FinTech) has propelled the speed at which payments are made, increased the reach of digital payments across borders, and expanded the accessibility of financial services to users worldwide. In 2022, the global digital payment market size was valued atUSD 81.03 billion, with global digital payments valued at over USD 8 trillion, and the market size is only expected to continue, at an annualgrowth rate of around 20% in the next seven (7) years1. There is no doubt that digital payment services are becoming more attractive than traditional financial services. Digital payments occur in real-time and payment services are generally free to use, whereas traditional banking channels can take days to complete, may require a fee to process a transaction, and may involve bank intermediaries. In efforts to remain competitive, improve customer satisfaction, and drive business, companies are focusing more and more on digital payment innovations.
Behind the scenes, bad actors or criminals are keeping up with the pace and advances in FinTech, often actively developing new strategies to exploit digital payment products and services to hide the origins of their criminal activities and take advantage of vulnerabilities and weaknesses in organizations’ compliance frameworks. The rise of digital payments has increased the potential for financial crime risks (namely fraud, money laundering, terrorist financing, and sanctions risks). As such, FinTech companies are constantly focused on balancing between the need to maintain user satisfaction and prioritizing the identification and management of increased financial crime risks to meet the demands of evolving regulatory focus.
