In two global surveys of more than 1,000 C-suite business and technology leaders across six different industries, FIS has quantified the true impact of financial, operational and technological disharmony, defined as disruptions and inefficiencies across the money lifecycle, on firms in the US, the UK and Singapore.

“The Harmony Gap: Finding the Financial Upside in Uncertainty” study reveals that disharmony is costing UK businesses on average £70 million per year (equivalent to $89.6 million), with friction in financial systems and processes leading to operational bottlenecks, reputational damage and lost revenue opportunities. However, these costs are lower than those faced by their global counterparts, with disharmony in the money lifecycle costing Singapore businesses $95.7 million and US businesses $108.0 million, according to the study.

Tension when money is in motion

Nearly half (47%) of UK respondents to the surveys reported that their business experiences greater tension when money is in motion – that is, when funds are transferred between accounts and entities during transactions, treasury operations and risk management activities – than at other stages of the money lifecycle. For the banks and fintech firms surveyed, money movement can be particularly vulnerable due to cybersecurity threats, fraud and compliance challenges, which can contribute to rising costs.

Cyberthreats emerged from the study as a leading source of tension for 86% of UK respondents, with these businesses facing an average cost impact of £24.0 million ($31.5 million) annually due to security breaches. Fraud is also a significant concern, according to 80% of UK respondents, alongside regulatory and compliance issues.

Restoring harmony

Recognising the growing risks, UK respondents reported that their companies are accelerating the adoption of financial technology solutions to streamline operations, enhance security and improve cost efficiency. The study found that roughly six in 10 (63%) describe their organisation’s progress in implementing these technologies as “advanced” or “very advanced”. Solutions being adopted, according to UK respondents, include automated payment processing (76%) to reduce delays and errors, AI-powered fraud detection (57%) and blockchain for secure transactions (40%).

Alongside technology adoption, UK companies are prioritising employee training to fortify their defences against fraud and cybersecurity threats, according to the business leaders surveyed. Over half (57%) of UK respondents agree that regular training has helped to reduce disruptions to the money lifecycle, compared to 49% for US respondents. Additionally, 53% of survey participants in the UK reported that their business has optimised supply chain and operational processes to align with strategic priorities, indicating a proactive approach to mitigating disharmony.

Firdaus Bhathena, chief technology officer at FIS, commented: “As digital transformation accelerates, organisations must adapt swiftly to navigate the complexities of modern financial ecosystems. Beyond monetary losses, our research found that businesses are also facing erosion of trust, reputational damage and strategic setbacks when systems and processes are not aligned. However, there is a silver lining. By harnessing the power of technology, automating processes, and enhancing security measures, businesses can transition from financial disharmony to a more harmonious, secure, and cost-effective future. The shift towards financial harmony is not just a necessity: It’s an opportunity to drive resilience, innovation and long-term growth.”

“This groundbreaking research has quantified the impact of tensions within the money lifecycle,” Bianca Fisher, research manager at Oxford Economics, said. “This unique analysis has allowed us to identify the cost of financial disharmony and how it can hinder organizational growth and innovation. By working with FIS, we’ve delivered insights that will help businesses globally understand and address these challenges, leveraging emerging technology solutions like AI and automation to enhance efficiency, security, compliance and strategic decision-making.”

A preview of “The Harmony Gap” study findings can be found here. FIS plans to release the full survey results ahead of its annual Emerald conference in May.

About the Research

In partnership with FIS, Oxford Economics conducted two separate surveys, each involving 501 C-suite executives and business leaders at organizations directly involved in financial technology decision-making in the US, the UK and Singapore, spanning the financial services, technology, fintech, insurance, government and other sectors. A pulse survey was conducted in October and November 2024 to identify tensions – “disharmony” – stemming from issues such as fraud, cyberthreats, human errors, operational inefficiencies and regulatory complexities, while also exploring the potential growth opportunities these challenges might present. The second survey, conducted in November and December 2024, collected detailed insights into how organizations are implementing strategies to mitigate disharmony. Data for both surveys was collected using computer-assisted telephone interviewing (CATI) and online methodologies.