Inside the Hidden Cost of Payment Chaos and Cyber Risk | Image Source: www.digit.fyi
LONDON, United Kingdom, 15 April 2025 – Yes
At a glance, the era of digital payments promises speed, security and seamless transactions. However, behind the curtain of financial innovation, a calmer crisis is developing. According to an in-depth study carried out by FIS in collaboration with Oxford Economics, companies around the world are losing nearly $100 million a year due to the intersection of cyber threats, fraud, regulatory stress and systemic inefficiencies, that the report erases the “chass of harmony”
What is this financial discord leading to?
The source of confusion? They are not only the usual suspects of outdated infrastructure or cybercriminals. This is the absence of synchronized strategies in all departments and an underestimation of what is needed to protect the entire life cycle of money, especially when money is on the move. According to the study, more than 51% of executives report the greatest tension during cash transfers. Whether through payment systems, card networks or credit accounts, this phase often becomes a field of delays and vulnerabilities.
Despite 79% of companies adopting automated payment technologies, 57% continue to experience transaction delays at least once a month. The result? Commitment, customer dissatisfaction and reduced liquidity. Add to this the increase in cyber threats – 37% of companies face them daily – and it becomes clear why managers feel outmoded.
What is the threat to cybersecurity?
It’s not hyperbole. Research shows that 74% of companies face monthly critical cyber threats. It’s not just a concern, it’s a crisis. Alarming, while 83% say fraud prevention is a top priority, only 47% provide regular training to employees and just over half (53%) are satisfied with their fraud response plans. The gap between intent and implementation is wide and, for many, financially devastating.
“Companies investing in construction or association with the Finnish experience are better placed to optimize their financial operations, mitigate risks and ultimately achieve the financial harmony that stimulates sustainable growth”
firdaus Bhathena, FIS Director of Technology.
What is the annual cost of businesses?
The toll is not only operational, it is financial and amazing. On average, businesses lose:
- $31.7 million to cyberthreats
- $21.6 million to fraud
- $14.9 million from regulatory hurdles
- $11 million due to inefficiencies
- $6.2 million from human errors
- $4.9 million tied to reputational damage
- $3.3 million from payment friction
- $2.9 million due to fintech talent gaps
- $2 million lost to liquidity shortfalls
Technology companies are the most affected, facing annual costs of disharmony for an average of $13.6 million. Insurance follows nearly $104.8 million, followed by financial services at $93.6 million. On the contrary, some fintech companies report relatively small but still large losses of $64.4 million per year.
How do geography affect?
Geographical location also plays a role in the way companies live and absorb these frictions. According to the report:
- U.S. firms lose an average of $108 million annually.
- Singapore-based firms face losses of $95.7 million.
- U.K. firms come in slightly lower at $89.6 million.
These regional differences highlight not only regulatory differences, but also the various levels of technological adoption and internal governance standards.
Is Fintech Investment the answer?
Maybe. Companies that have adopted specialized fintech teams have significant advantages. Approximately 85% of them feel well equipped to manage operational inefficiencies, cyber risks and compliance fees. The same organisations also report an average revenue increase of 8.5 per cent after the implementation of integrated financial solutions.
However, this progress is not universal. The insurance industry is delayed, with only 52% of companies reporting dedicated fintech equipment compared to an inter-industry average of 74%. This technological gap could be even more dangerous as digital threats become increasingly complex.
“We entrust this research to determine the sources of disruption and inefficiency within the financial ecosystems of the organisations, whether at rest, in movement or at work”
said Stephanie Ferris, CEO and President of FIS. “The results discover the consequences of disharmony in the life cycle of money.”
Why is employee training still too visible?
That’s what you mean. Even with growing cyber attacks, almost half of the companies surveyed do not provide regular training to employees on fraud or cyber-sensitization. It’s a blind spot that makes them vulnerable. It is interesting to note that the insurance sector outstrips others in this area: 75% of insurance companies use employee training as the primary method of defending against fraud, well above the interprofessional average of 48%.
But why this disparity? Small businesses often lack budget for frequent training sessions, while large companies can rely too much on technology, assuming it will serve as a shield. In fact, no system is infallible without human monitoring.
What can companies do to strengthen financial harmony?
The study offers some key elements:
- Invest in dedicated fintech teams. The data is clear: companies with these teams are more agile and better protected.
- Train employees regularly. Human error is still a significant source of loss. Awareness goes a long way.
- Embrace embedded finance solutions. These can increase operational efficiency and boost sales.
- Focus on the “money in motion” phase. It’s where most friction occurs—and where vigilance should be highest.
- Prioritize cross-functional coordination. Financial harmony demands that technology, compliance, operations, and finance teams work in sync—not silos.
Ultimately, financial harmony is not a single initiative, it is a continuous effort. While automation and IA are powerful instruments, they do not replace human experience, strategic investment and organizational commitment. As the threats become more sophisticated, they also need defenses – and this means combining technology with training, structure and foresight.
It is a call for action for businesses, especially as digital financing continues to evolve. Ignore the difference of harmony, and risk more than delays: you risk your reputation, your trust in the customer and the lower line.
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