Day 9 - A Needed Shift Part 1: Building AFC as a Strategic Growth Driver for All

If we are to make true progress against financial crime, the way we approach Anti-Financial Crime (AFC) must fundamentally change. AFC must no longer be seen as a mere compliance checkbox, a “necessary evil” to avoid fines and mitigate risk. Instead, AFC should be treated as a powerful, strategic growth driver that strengthens public trust, institutional integrity, and even competitive differentiation. Every stakeholder, from financial institutions to regulators and policymakers, must shift their mindset to see AFC not as a drain on resources, but as an asset that benefits everyone.

For financial institutions, AFC should be a core function that enhances customer loyalty, confidence, and long-term value. For regulators, lawmakers, and law enforcement, AFC should be a collaborative and coordinated effort, ensuring robust frameworks that foster shared defense. Today, I’ll discuss what this shift could look like in action and how it can be implemented meaningfully across sectors.

1. AFC as a Shared Brand Value

Solution: Integrate AFC into Brand Identity

Today’s consumers are more informed, more cautious, and less willing to compromise on security. Customers want to know that their financial institutions prioritize security and that their money and personal data are safe. This is where AFC can be leveraged as a brand value—a way to build loyalty, trust, and even competitive advantage.

When financial institutions embrace AFC as part of their brand identity, they send a clear message: “We protect you because we prioritize your well-being.” Banks, insurers, and other financial entities have an opportunity to differentiate themselves by integrating strong AFC practices into their customer promise. They can proudly share stories of how their teams prevent fraud, protect accounts, and combat financial crime, making AFC visible as part of their customer-centric mission.

Impact: Enhanced Public Trust and Differentiation

Public trust is a financial institution’s greatest asset, and trust is won by doing what’s right—even if that doesn’t generate immediate profits. When institutions genuinely embrace AFC as a brand value, they naturally enhance their reputation and customer loyalty. Customers who trust their banks are more likely to keep their assets there, more willing to recommend them, and more open to engaging with additional products and services. According to Edelman’s Trust Barometer, 66% of people worldwide trust their financial institutions to act ethically. AFC practices, integrated into brand identity, can enhance this trust, particularly when institutions transparently communicate their efforts to combat crime.

2. Regulatory and Legislative Support: Unified Standards for a Coordinated Defense

Solution: Establish Global Standards for AFC

While financial crime is global, AFC practices remain fragmented, restricted by national borders and local regulations. This piecemeal approach benefits criminals, who exploit gaps in jurisdictional boundaries. To build AFC as a strategic growth driver, regulators and policymakers must shift toward unified, standardized frameworks that empower financial institutions to work collaboratively and effectively. Standardized AFC protocols and cross-border data-sharing mechanisms are essential for a globally coordinated effort.

Imagine if every financial institution worldwide used the same baseline protocols, the same data-sharing practices, and had access to the same regulatory support. Criminals would no longer find easy “escape routes” through gaps in regulations, and institutions would have the assurance and clarity needed to innovate confidently in AFC.

Impact: Enhanced Protection and Simplified Compliance

Unified standards would mean clearer guidelines, easier compliance, and enhanced protection for customers, investors, and communities. Regulatory agencies should recognize that by simplifying and standardizing AFC frameworks, they make it easier for financial institutions to comply while improving overall system security. Institutions wouldn’t need to juggle dozens of compliance requirements across jurisdictions but could instead allocate resources to genuinely preventive measures. Ultimately, this would enable institutions to invest more in proactive solutions rather than duplicating compliance efforts.

3. AFC as a Driver of Competitive Differentiation

Solution: Position AFC as a Core Service and Value Proposition

Financial institutions compete on many factors—rates, services, customer experience—but increasingly, security is a core differentiator. Consumers are more likely to choose banks that demonstrate strong protections against fraud and crime. Institutions that lead in AFC practices can position themselves as leaders in security, attracting customers who prioritize safety and ethics. This strategy requires proactive AFC practices, transparency, and visible commitments to security.

Imagine if your financial institution didn’t just keep accounts secure but also offered education on how to spot scams, alerts on current fraud trends, and support for victims. Such AFC-driven differentiation tells customers that their safety is not just a service but a core value, inspiring confidence and encouraging long-term loyalty.

Impact: Attraction of Security-Conscious Customers

Customers increasingly choose financial institutions based on their security reputation. According to a recent PYMNTS survey, 69% of Consumers Prioritize Fraud Protection When Picking a Bank. AFC-focused institutions stand to benefit from this trend, as strong AFC practices appeal directly to security-conscious consumers. By building AFC into customer-facing services, institutions foster loyalty among clients who value protection, which in turn enhances growth potential and competitive positioning.

4. Leveraging Advanced Technology for Proactive Detection and Prevention

Solution: Invest in Advanced AI and Data Analytics

The financial services industry has an abundance of data, yet without advanced tools, institutions cannot leverage this data effectively. Modern AFC efforts need AI-driven analytics, machine learning algorithms, and privacy-preserving technologies to detect patterns, predict risks, and flag genuine threats. Investments in AI and data analytics can help AFC teams differentiate real risks from false positives, improve efficiency, and shift resources toward proactive crime prevention.

The difference between a rule-based AFC system and an AI-powered one is like the difference between a traditional security guard and an intelligent surveillance system that predicts and alerts for risks before they occur. AI can analyze customer transaction data, detect anomalies, and alert AFC teams to patterns that indicate fraud or laundering. These capabilities go far beyond compliance checks; they represent a proactive, sophisticated approach to financial crime prevention.

Impact: Reduced Operational Costs and Enhanced Precision

AI-powered AFC programs not only improve crime detection accuracy but also reduce the volume of false positives, freeing resources and reducing compliance costs. Financial institutions spend billions on compliance costs, a significant portion of which goes to managing false positives. By investing in technology, institutions can streamline compliance, reduce waste, and focus resources on meaningful crime prevention, driving down costs and improving protection simultaneously.

5. Embedding AFC in Organizational Culture

Solution: Foster a Culture of Responsibility and Integrity

Effective AFC programs require more than just technology—they need a culture that prioritizes integrity, responsibility, and transparency. Embedding AFC into organizational culture begins with leadership, setting the tone for all levels of the institution. Employees need to understand that AFC isn’t just a department or a policy—it’s a shared responsibility. This mindset can be fostered through training programs, awareness campaigns, and reward systems that incentivize ethical behavior.

Think of this as building a “corporate immune system” against crime. Just as a healthy immune system protects the body from external threats, a strong ethical culture protects the institution from internal and external risks. When every employee, from the C-suite to customer service, sees themselves as a line of defense, AFC efforts become part of the organization’s DNA.

Impact: Greater Alignment and Internal Accountability

A culture that values AFC encourages employees to report suspicious activity, uphold ethical standards, and act with a sense of mission. Such an environment fosters accountability, aligning the organization toward a shared goal of integrity and security. Institutions with strong AFC cultures are better equipped to detect and respond to threats, making them resilient and trustworthy in the eyes of customers, regulators, and the public.

Moving Forward: Making AFC a Strategic Growth Driver

To transform AFC into a strategic growth driver, we need a mindset shift that values security, integrity, and collaboration over cost-cutting and box-ticking. AFC should not be a burden—it should be a foundation of trust, a competitive advantage, and a mission that inspires employees and reassures customers.

As this series continues, we’ll dive deeper into specific, actionable steps for making this vision a reality. AFC isn’t just a defensive measure; it’s an opportunity for growth, reputation-building, and industry leadership. When we embrace AFC as an investment in our institutions and our communities, we build a future where financial crime doesn’t just drain resources—it meets a united front, a shared purpose, and a commitment to protection that benefits everyone.

Let’s shift our perspective and lead the way to an AFC approach that empowers growth, trust, and security across the industry.

Tomorrow: Day 10 - Investing in Advanced, Preventative Technology Solutions