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Outsmarting Tomorrow’s Risk: 8 Strategies for a Smarter Financial Ecosystem

Read | Sep 04, 2025

AUTHOR(s)

Shanmugaraj Rajamani

Director - Solutions, Financial Crime Compliance Practice

Key Points

  • Financial services companies are navigating heightened decentralization and volatility, with leaders adopting advanced financial risk management strategies that span data governance, AI-powered compliance and cloud transformation.
  • Generative AI and Agentic AI, combined with predictive analytics and perpetual KYC, are re-defining fraud detection and risk management, while collaborative Bank-FinTech partnerships are accelerating secure, customer-centric innovation.
  • This article examines how an integrated approach — blending technology, regulatory foresight and trust-centric design — can outsmart tomorrow’s risks and enable a smarter, more sustainable financial ecosystem.

The rapidly evolving business landscape is driving increasing decentralization across domains, fueled by geopolitical uncertainty, economic variability, environmental challenges and the rise of next-generation technologies. Looking ahead, research from the World Economic Forum indicates that more than half (52 percent) of experts anticipate an unsettled global outlook to continue through 2027, while almost one-third (31 percent) expect turbulence.1

In this context, it’s imperative for the financial services industry to safeguard its interests and ecosystem. As global markets and products become more complex, industry leaders, regulators and tech innovators are collaborating to enhance security and resilience. The emergence of Generative AI (Gen AI) in financial services is a case in point, with its transformative potential constrained by the security and privacy concerns around implementation. In the banking sector, this apprehension is even more acute: 80 percent of cybersecurity executives feel they cannot keep pace with AI-powered cybercriminals.2

Modernizing the banking and financial ecosystem requires more than incremental technological upgrades. It calls for strategies that seamlessly integrate advanced risk management, cutting-edge technologies and regulatory compliance to build an ecosystem that is both protective and enabling – safeguarding individuals, businesses and economies from threats while fostering trust, stability and growth.

With Edelman’s Trust Barometer showing that the financial services industry is now trusted by 64 percent of people globally – up two points from 2024 – there is a strong foundation from which to begin a journey of technological innovation, regulatory foresight, customer-centric design and collaborative intelligence.3

Below, we outline the most impactful strategies that are transforming the financial sector and bringing this future-ready ecosystem to life.

1. Data Quality and Governance

The foundation of a secure financial system starts with high-quality, well-governed data. Institutions today are more focused than ever on ensuring data integrity, with accurate and validated data critical to identifying suspicious activities and complying with regulatory frameworks.

According to research from WNS in partnership with Corinium, data quality is the single biggest challenge to building better data ecosystems, cited by 57 percent of C-suite leaders across industries. Promisingly, however, the same percentage are already deploying data integration tools to address fragmented data, while half have established unified data policies.

Data governance, meanwhile, has become a central concern for institutions as they seek to ensure the availability, usability, integrity and security of information across all enterprise systems. By establishing robust governance frameworks, organizations can ensure compliance with regulations and swiftly adapt to new compliance changes as they emerge.

A robust risk management framework is a top priority, with the ability to scale and adapt to evolving requirements set by local regulators. WNS addresses this by aligning with regional compliance needs and creating a digital ecosystem that brings together functional experts, platforms and alliance partners – reducing manual intervention and preparing clients for a future-ready compliance landscape.

2. AI and Advanced Analytics

Next-generation AI-powered platforms and advanced analytics are playing a pivotal role in transforming compliance and risk management in financial services. Financial institutions are increasingly leveraging machine learning and big data to proactively identify emerging risks and uncover anomalies that might previously have gone undetected. From real-time transaction monitoring to a wide range of other high-impact applications, AI is becoming integral to creating more resilient and responsive risk management frameworks.

Gen AI is also re-defining what’s possible, harnessed by future-facing organizations to identify deepfakes, synthetic identities or impersonation scams, marking a new frontier in fraud prevention. To realize this potential at speed, 62 percent of enterprises plan to collaborate with partners in building Gen AI solutions and enhancing technical capabilities, with 60 percent intending to leverage third-party support for the seamless integration of Gen AI solutions with existing technologies.

Looking ahead, Agentic AI will soon accelerate these capabilities further. Deloitte predicts that 25 percent of enterprises using Gen AI will launch Agentic AI pilots in 2025, with the number rising to 50 percent by 2027.4 These autonomous AI systems will shift the focus from optimizing processes to achieving business goals, enabling AI to proactively solve challenges across complex workflows industry-wide. Wells Fargo is one case in point, recently announcing plans to roll out Agentic AI tools to its entire workforce.5 AI agents will soon be capable of handling high-risk tasks like enhanced due diligence, increasing capacity and transforming compliance into a competitive advantage.

3. Cloud and Open-Source Transformation

An industry-wide shift toward cloud-based platforms is well underway, offering organizations enhanced security, cost reductions, agility and scalability. Cloud and edge-based computing was the top tech focus for 84 percent of financial services firms in 2024, while 87 percent of firms have increased cloud spending in the past two years, primarily on strategic outcomes such as scalability, revenue growth and AI enablement.6,7

Cloud solutions not only provide improved operational efficiency but also enhance collaboration across departments, breaking down silos and accelerating the speed at which institutions can respond to market changes and customer demands. It’s why 54 percent of companies are executing phased integration of systems to bridge the gap between legacy and cloud systems, with 37 percent engaging third-party expertise for a smoother transition.

Similarly, open-source technologies, such as Linux-based platforms, are gaining traction in the financial ecosystem due to their flexibility, security and cost efficiency. The growing influence of the Fintech Open-Source Foundation (FINOS), which now includes over 100 members spanning major financial institutions and technology providers, underscores this trend. Notably, 84 percent of organizations believe open-source initiatives deliver business value, while 88 percent say they enhance software quality.8

4. Risk-based Approaches

With financial institutions facing a fast-evolving array of challenges – ranging from complex regulatory demands to the escalating threat of cyberattacks – managing risk has shifted from a protective measure to a critical competitive advantage. In this high-stakes climate, strong risk management strategies are not just essential for ensuring a secure financial ecosystem but also for seizing growth opportunities, with risks extending far beyond traditional concerns.

The rise of digital banking has triggered new cybersecurity and data privacy threats, while environmental risks and geopolitical uncertainties are complicating the landscape further. Technology itself is bringing new threats too, with 60 percent of enterprises expressing significant concerns around data security and the use of Gen AI.

In response, institutions are integrating advanced technologies to combat the risks that they represent, leveraging tools like predictive analytics and machine learning to identify emerging risks early and adjust strategies at speed. The shift toward perpetual KYC (Know Your Customer) processes – a real-time, dynamic approach that continuously updates customer risk assessments based on new data – is one such example, enabling institutions to address emerging threats before they escalate.

5. A Compliance-centric Culture

As regulatory environments grow more complex, institutions are responding by strengthening their compliance programs – essential to combat rising risks such as fraud, money laundering and other financial crimes. With regulations constantly evolving, compliance frameworks are becoming more dynamic, as proactive approaches enable organizations to stay ahead of potential risks, safeguarding their operations and reputation.

By adopting compliance-by-design principles, banks ensure that compliance practices are incorporated into both front-end and back-end processes. AI offers a transformative means to streamline compliance by tracking regulatory changes, assessing their impact on operations and delivering real-time updates. This enables banks to implement compliance measures more quickly, accurately and cost-effectively.

However, compliance today goes far beyond meeting regulatory requirements. It has become a central organizational value, deeply integrated into the very culture of financial institutions. Continuous employee training on data privacy, ethical conduct and risk management ensures that compliance is ingrained throughout the organization. With over half (57 percent) of Chief Risk Officers (CROs) identifying talent shortages as one of the banking industry’s most significant long-term risks, banks must upskill their employees to ensure that a culture of compliance permeates every aspect of operations.9

6. Bank-FinTech Collaboration

Bank-FinTech partnerships are becoming increasingly critical pillars of the financial services landscape, with the banks engaging with an average of 9.4 FinTech partners.10 This partnership is creating an active environment for new ideas where banks use the quick digital changes, groundbreaking innovations and focus on customers from FinTechs to keep up in a fast-changing world, while FinTechs gain from the reliability, knowledge of regulations and trust that banks offer to grow safely.

This symbiotic relationship is paving the way for a more agile, transparent and future-ready financial ecosystem. The integration of FinTech solutions, for example, enables banks to offer more personalized and secure services – think advanced fraud detection systems or enhanced cybersecurity measures – which are business-critical in today’s digital-first world. Riyad Bank’s recent collaboration with Mastercard on its Cyber Resilience Center is one case in point, working together to boost cybersecurity collaboration and safeguard the regional digital payments ecosystem.11

7. Intelligent Cost and Risk Management

Open banking and digital wallet solutions are also re-shaping how banks manage both cost and risk. By enabling third-party providers to access consumer data securely through application programming interfaces, open banking is enabling the rapid scaling of digital innovation without the need to overhaul core infrastructure and re-introduce onboarding procedures. It’s already delivering tangible impact at scale, with one in five UK consumers and businesses now using the financial innovation.12

Agile ecosystems that enable faster settlements, lower transaction costs and greater transparency for users by meeting regulatory expectations and mitigating fraud are being built as a result. Such use cases will only grow in importance as the introduction of developments like instant payments heightens the need for robust and real-time fraud prevention. Similarly, advanced lending solutions powered by FinTech collaborations enable banks to more effectively assess risk and manage their loan portfolios, ensuring better loan origination and management.

8. Embedded Customer-centricity

Trust and loyalty are central to a safer financial ecosystem. To meet these expectations, institutions are moving away from product-centric models toward customer-centric approaches, often by leveraging FinTech’s digital capabilities. In this enhanced ecosystem, the focus is on holistic, personalized offerings that address the unique needs of each customer, fostering deeper loyalty and engagement in an increasingly competitive market.

According to Forrester, customer-obsessed enterprises report 41 percent faster revenue growth and 49 percent accelerated profit growth.13 This demonstrates how customer-centricity – or a CX focus – is not only a tool for trust, but a strategic differentiator, with leaders outperforming laggards in terms of higher returns, accelerated growth and lower costs. The banking and financial services industry is creating a personalized experience to delight customers’ association and journey.

Unlocking a Future-ready Financial Ecosystem

By embracing these modern strategies and integrating advanced analytics, regulatory compliance and cutting-edge technology, the financial services industry is not only outsmarting emerging risks but creating a more secure and resilient financial ecosystem. Collaboration between banks, FinTech firms, regulators and international organizations will continue to be crucial in building a trustworthy financial landscape.

To realize this future at speed, many leading organizations are embracing partnerships that unlock seamless access to emerging technologies, accelerate deployment and embed best practices shaped by industry-wide experience. These collaborations are laying the groundwork for a safer, more sustainable financial ecosystem, one powered by intelligent collaboration, technological advancement and an unwavering commitment to security and resilience.

Ready to outsmart tomorrow’s risks and shape a smarter financial ecosystem with confidence? Connect with our experts to explore how you can harness innovation, drive customer-centric growth and stay ahead in 2025 and beyond.

References

  1. Global Risks Report 2025 | World Economic Forum

  2. Wall Street is Worried It Can’t Keep Up with Cybercriminals | Business Insider

  3. 2025 Edelman Trust Barometer | Edelman

  4. Autonomous Generative AI Agents: Under Development | Deloitte

  5. Wells Fargo is Rolling Out Company Wide AI | Fast Company & Inc

  6. Financial Institutions Are Shifting Their Workload to the Cloud in 2024 | FinTech Global

  7. Survey Suggests Boom in Banks’ Cloud Adoption | Finextra

  8. How Open Source Is Transforming Finance | Forbes

  9. Future forward: How digital transformation drives upskilling in the banking industry | SGV

  10. United We Thrive: The Untapped Power of Bank-Fintech Partnerships | Bain & Company

  11. Mastercard Launches Cyber Resilience Center in Saudi Arabia | Mastercard

  12. OBL Impact Report 7: open banking delivers real-world impact as adoption accelerates year-on-year | Open Banking

  13. Forrester’s 2024 US Customer Experience Index: Brands’ CX Quality Is At An All-Time Low | Forrester