A recent study by FIS and Oxford Economics has revealed that businesses are grappling with mounting costs due to cyber threats, fraud, regulatory hurdles, and operational inefficiencies—leading to annual losses averaging $98.5 million. The report highlights that one in three businesses experiences cyber threats and digital disruptions on a daily basis, while nearly three-quarters face serious or high-profile cyberattacks at least once a month.
According to the research, 88% of respondents identified cyber threats as the most significant disruption in their operations. Fraud (79%) and regulatory complexities (65%) followed closely as major concerns. Other contributors to this disharmony—defined as inefficiencies across the money lifecycle—include operational delays, payment system frictions, human error, liquidity issues, and gaps in financial technology expertise.
Despite the clear risks, 53% of companies admitted dissatisfaction with their current fraud response strategies. Similarly, 41% expressed concerns about the effectiveness of their software tools for detecting and preventing fraud. Notably, 47% of surveyed firms fail to provide regular employee training on cyber and fraud awareness, leaving them more exposed to threats.
Daily Cyber Threats as Firms Struggle with Digital Disruptions
Interestingly, the insurance sector emerged as an outlier in one key area—employee training. According to the study, 75% of insurance companies focus on staff education for fraud prevention, significantly above the 48% average across all sectors. However, the insurance industry was also found to lag in financial technology (fintech) adoption. Only 52% of investment firms in this sector reported having a dedicated fintech team, compared to 74% across other industries.
In contrast, firms that have invested in fintech strategies are seeing measurable gains. Approximately 85% of leaders from organizations with fintech teams stated they are well-prepared to handle disruptions, including cyber risks and compliance failures. Furthermore, 83% of such companies reported increased revenue after embedding fintech solutions into their operations.
Automation has become a cornerstone of Digital Disruptions transformation for many businesses, particularly in payment processing. While 79% of respondents said they use automated payment systems, more than half (57%) still face regular transaction delays. Additionally, 51% reported friction when moving funds through various financial systems—underscoring the need for more streamlined solutions.
The study also reveals a growing reliance on advanced technologies like generative AI (GenAI) and machine learning (ML). About 55% of companies surveyed are actively investing in AI tools to meet strategic goals. Despite this enthusiasm, firms cite significant obstacles: 73% mention the high cost of implementation, 64% struggle with a lack of internal expertise, and 58% find integration with legacy systems challenging.
Nevertheless, optimism persists. Over half (56%) of respondents believe AI can enhance organizational agility in responding to market changes, and 48% see it as a path to attracting new customers.
Firdaus Bhathena, Chief Technology Officer at FIS, emphasized that a strong, well-defined technology strategy is critical to achieving financial harmony. “Companies that invest in building or partnering with fintech expertise are better positioned to optimize financial operations, mitigate risk, and drive sustainable growth,” Bhathena stated.
As Digital Disruptions threats grow more frequent and complex, businesses are recognizing the urgent need for smarter, more integrated technological solutions to navigate today’s rapidly evolving economic landscape.
Also Read :- Safeguarding the Digital Realm: Understanding CyberAttacks and Their Vital Countermeasures
