The changing world of technology in financial services

The past decade or so has seen a strong focus on risk and compliance technologies that make use of analytics in financial services. These technologies, which might be called "defense" technologies--in contrast to "offense" technologies that involve marketing and revenue growth--include applications and infrastructure for risk management, fraud prevention, regulatory, and anti-money laundering (AML) compliance. They bring the power of analytical insights--initially used for identifying marketing opportunities in many companies--to risk mitigation in banking. While these distinctions are somewhat blurred by integrating risk-based insights into "offense" activities, they are a useful shorthand. The Great Recession of the late 2000s drove both a greater focus on risk management and substantial new regulation for financial firms.