Businesses and technology firms across the UK are losing an average of £70m each year due to inefficiencies and disruption within the money lifecycle, according to new research by global FinTech leader FIS, in partnership with Oxford Economics.
According to Finextra, the study, titled “The Harmony Gap: Finding the Financial Upside in Uncertainty,” surveyed over 1,000 C-suite executives from six industries across the UK, US and Singapore. It reveals the scale of operational, financial and technological disharmony — defined as breakdowns or inefficiencies in the movement and management of money — and the mounting costs it brings to organisations.
The report highlights that UK businesses are slightly better positioned than their global counterparts, with average losses from disharmony reaching $95.7m in Singapore and $108m in the US. Nevertheless, UK firms still face significant financial damage, reputational risks and missed revenue opportunities.
One of the most vulnerable moments in the money lifecycle, according to the study, is when funds are in motion — whether during transactions, treasury operations or risk management. Nearly half (47%) of UK respondents said their business faces heightened tension during these processes, with banks and FinTech firms particularly exposed to cybersecurity threats, fraud and compliance issues.
Cybersecurity breaches were flagged as the most expensive threat, with 86% of UK respondents estimating an average annual cost impact of £24m from security incidents. Fraud followed closely behind, cited by 80% of respondents, while regulatory complexity also added to the challenges.
In response, UK businesses are ramping up their adoption of FinTech solutions to tackle these issues. The research found 63% of UK firms consider their progress in implementing financial technology as “advanced” or “very advanced”. The most commonly adopted solutions include automated payment processing (76%), AI-powered fraud detection (57%), and blockchain technology (40%) to secure transactions and reduce errors.
Companies are also investing heavily in their workforce, with 57% of UK businesses noting that regular employee training has helped minimise disruptions to financial operations — a higher proportion than their US counterparts (49%). Meanwhile, 53% reported optimising their supply chain and operational processes to reduce disharmony and align with broader strategic goals.
FIS chief technology officer Firdaus Bhathena said, “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.”
Oxford Economics research manager Bianca Fisher said, “This groundbreaking research has quantified the impact of tensions within the money lifecycle. 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.”
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