How much money does financial disharmony cost your company?

The same tools that allow companies to digitize and grow their businesses rapidly are costing them real money—an average of $100 million every year per organization surveyed in our new study with FIS, a leading fintech firm. The good news: These losses can be reduced with better training and operational controls.

What does it cost businesses when financial operations aren’t running smoothly?

To answer this, we examined the complete money lifecycle—money at rest (e.g., in savings accounts), money in motion (e.g., payment and transfers), and money at work (e.g., investments)—from the perspective of more than 1,000 senior executives surveyed from financial and non-financial services firms in the U.S., the U.K., and Singapore.

The survey findings tell an alarming story. Cyberthreats, fraud, and regulatory complexity are major contributors to misalignment and friction, together accounting for over two-thirds of the average $100 million annual cost of financial disharmony. And while the sources of financial tension vary by industry, a consistent theme emerged—the money in motion phase is the epicenter of inefficiency. For fintech and financial services companies, this stage represents the single greatest source of tension within their organizations’ financial lifecycle.

Smart organizations are not standing still

Many current fintech solutions fall short. Executives cite inadequate security, high operating costs, and challenges integrating new technologies into legacy systems. These gaps slow progress toward the seamless financial operations that increasingly define market leaders. Despite these headwinds, the adoption of advanced technologies—particularly AI and embedded finance (i.e., digital banking services offered within non-banks)—is already delivering measurable value. Surveyed organizations cite increased agility, improved collaboration, market expansion, and enhanced customer experience as key benefits. Early adopters of embedded finance, for example, report notable sales growth and increased customer loyalty. But significant hurdles remain. The cost and complexity of AI implementation, as well as shortages in specialized skills, are slowing the rate at which organizations can reap the full rewards of innovation.

Tackling disharmony demands a well-planned, multi-faceted approach. We recommend organizations start by identifying the most acute pain points in their money lifecycle and prioritizing technology investments, employee training, and strategic partnerships in those areas. Importantly, every investment should be viewed through the lens of customer experience to maximize efficiency and security for clients and stakeholders. As digital transformation accelerates organizations that harmonize their money lifecycles will be best positioned for sustainable growth in an increasingly uncertain world.

About the Research: Oxford Economics, in partnership with FIS, conducted two separate surveys of 501 C-level executives and business leaders each, across the U.S., U.K., and Singapore in late 2024. The research utilized a mixture of computer-assisted telephone interviews and online surveys to uncover how organizations are addressing friction in their global financial processes.

For additional insights, read this Fortune article and see the FIS CEO, Stephanie Ferris, share perspectives in this CNBC video.