Middle Eastern Banks Can Reduce Risk and Compliance Costs by More Than 20% with Strategic Technology Investments, Says Finastra
In the midst of growing regulatory complexities and global market uncertainties, banks in the Middle East have the opportunity to significantly reduce their risk and compliance costs by more than the often-cited 20% through strategic technology investments, according to Finastra, a global provider of financial software applications.
Recent market research indicates that 75% of banks worldwide are looking to accelerate their technology transformation to bolster their risk management capabilities. Olivier Morice, Principal Solutions Consultant at Finastra, emphasizes that Middle Eastern banks, facing unique market challenges, stand to benefit greatly from embracing advanced treasury and risk technologies.
Morice highlights the challenges faced by regional banks, such as fragmented legacy systems, manual processes, and increasing compliance burdens. He suggests that integrating modern, cloud-based platforms and leveraging technologies like generative AI can drive cost reductions beyond 20%, while enhancing operational agility.
By consolidating functions onto a unified platform and leveraging automation and generative AI, Middle Eastern banks can execute risk assessments and compliance checks in near-real-time. This technology also enables banks to quickly adapt to regulatory and market changes.
Generative AI is emphasized as a tool to fill internal knowledge gaps and provide context-sensitive information to improve decision-making and compliance processes. With the evolving regulatory landscape and economic pressures, investing in robust treasury and risk management technology is becoming essential for sustained competitive advantage in the region.
Finastra continues to collaborate with banks in the Middle East to enhance their risk management capabilities, reduce operational costs, and increase agility through cutting-edge financial technology.
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