The opinions expressed here are those of the authors. They do not necessarily reflect the views or positions of UK Finance or its members.

For financial firms, the consequence of inadequate FCC looms large. A prime example is the recent penalties imposed on three prominent banks; these accounted for 33.2 per cent of the $176m FCA fines for misconduct in 2024.

To stay in line, over 81 per cent financial firms are actively prioritising transformation initiatives and critically analysing costs split between Technology and Headcount; a theme that was much discussed at the Financial Crime Summit and evident in industry surveys of FCC professionals and industry leaders.

Respondents showed a high inclination towards a split between human expertise and technology.* Source 1LoD

So, what’s changing? FCC professionals and majority financial firms we partner with explained that investments in transformation cannot focus only on technology or a one-size-fits-all approach. 

They are seeking ‘Productised Managed Services' and solutions that optimally blend technology, and human expertise, emphasising the need to making FCC costs more predictable and easier to budget as OpEx.

Survey results for FCC priorities and enablers in 2025. * Source 1LoD

It’s common knowledge that ‘Productised Managed Services’for FCC have been around for over a decade. However, while initially viewed as simple cost-cutting measures, these services have since matured as an effective strategy for financial firms, especially those who operate globally. 

There are compelling case studies across the industry today, where ‘Productised Managed Services’ have significantly enhanced FCC, potentially saving up to 60 per cent in operational costs. 

While some firms prefer to implement these in-house for control and customisation, many are engaging 3rd party service providers with expertise, global workforces, and advanced products/technologies like AI/ML to take advantage of the several advantages they offer, such as:

1. Avoiding significant CapEx investments for Compliance
2. Making FCC costs predictable and easier to budget as OpEx
3. Agility in scaling up or down to ensure peak periods or changing requirements are met
4. Providing ready access to evolving technology, AI/ML enhancements and expertise

Financial firms can rest assured that they are not alone in the fight against financial crime. Recent developments indicate a heightened sense of urgency amongst regulators and statutory PBSs/non-statutory PBSs to collaborate, share data, and gain a network view of economic crime, rising threats and hotspots for illicit financial activity.