Loading...
The instrumentation of detective analytics for mitigating financial crimes in South African institutions
Author(s)
Mlambo, Nontobeko Nkosinomusa Bongangithini
Date Issued
2024
Type
Thesis
Publisher
Cape Peninsula University of Technology
Abstract
The occurrence of financial crimes in South Africa has been significantly high. This is because
many financial institutions conduct their operations through online, digital platforms. Digital
operations in financial institutions increasingly rely on digital platforms due to the high demand
for real-time quick services. This results in generating unprecedented data. Organisations use
the data to make informed decisions, which increases the significance. The reliance on data
has made financial institutions adopt and use tools such as detective analytics. However, the
implementation of detective analytics remains challenging to individuals and organisations at
large. The challenges are attributed to a lack of understanding of the factors that influence the
implementation of detective analytics. There are concerns that the current data analytics tools
being used by financial institutions have gaps and loopholes. Consequently, financial crimes
are often identified only after their occurrence.
This study aimed to develop a tool that can be used to implement detective analytics to mitigate
financial crimes. In achieving this aim, the researcher followed the case study approach using
a South African financial institution as a case. The organisation was selected with a set of
criteria. Qualitative research methods involving interpretive and semi-structured interview
techniques were used to gain an in-depth understanding of the factors influencing financial
crimes in South African financial institutions. The study employed the subjective approach from
the interpretive perspective to gain insights into how detective analytics can be applied to
mitigate financial crimes in financial institutions. Semi-structured interviews were conducted
with business and information technology (IT) specialists. Also, the participants were selected
using a set of criteria. The interviews stopped at a point of saturation, which means that no
new information was forthcoming. Additionally, existing documents were gathered and used to
complement the interview data. The university (CPUT) and the organisation’s ethics, including
participants’ consent, guided the data collection.
The data was analysed using the four moments of translation actor-network theory (ANT as a
lens to guide the data analysis. The theory was selected primarily for three reasons. Firstly, it
focuses on translation, required to understand how meanings are associated with events and
processes in mitigating financial crimes. Secondly, ANT enables an understanding of how actor
networks are consciously formed, which helps to determine the formation of groups
responsible for mitigating financial crimes in the organisation. Thirdly, ANT’s mantra “follow the
actors” was employed to follow the actors, from humans to non-humans, helping to gain a
deeper understanding of why things happened in the ways they did in mitigating financial
crimes in the organisation. From the analysis, seven factors were found to influence the use
of detective analytics to mitigate financial crimes in organisations. The factors are as follows; (1) Collaboration; (2) Corroboration; (3) Internalisation; (4) Externalisation; (5) Digitalisation;
(6) Organisational structure; and (7) Integrated analytics.
Activity theory (AT) was used as a lens to guide the interpretation of findings. The interpretation
revealed the links between the influencing factors (findings) including their attributes. Based
on the influencing factors, the links, and the attributes, a framework was developed, which can
be used to guide the adoption and implementation of detective analytics to trace, track, and
prevent financial crimes in financial institutions in South Africa.
The study contributes to both business and academic domains from theoretical, practical, and
methodological perspectives. Theoretically, the relationships between the influencing factors
are established. Practically, organisations can develop policy and governance frameworks to
prevent financial crimes, based on the influencing factors. Methodologically, the application of
ANT and AT advances the use of sociotechnical theories in detective analytics.
many financial institutions conduct their operations through online, digital platforms. Digital
operations in financial institutions increasingly rely on digital platforms due to the high demand
for real-time quick services. This results in generating unprecedented data. Organisations use
the data to make informed decisions, which increases the significance. The reliance on data
has made financial institutions adopt and use tools such as detective analytics. However, the
implementation of detective analytics remains challenging to individuals and organisations at
large. The challenges are attributed to a lack of understanding of the factors that influence the
implementation of detective analytics. There are concerns that the current data analytics tools
being used by financial institutions have gaps and loopholes. Consequently, financial crimes
are often identified only after their occurrence.
This study aimed to develop a tool that can be used to implement detective analytics to mitigate
financial crimes. In achieving this aim, the researcher followed the case study approach using
a South African financial institution as a case. The organisation was selected with a set of
criteria. Qualitative research methods involving interpretive and semi-structured interview
techniques were used to gain an in-depth understanding of the factors influencing financial
crimes in South African financial institutions. The study employed the subjective approach from
the interpretive perspective to gain insights into how detective analytics can be applied to
mitigate financial crimes in financial institutions. Semi-structured interviews were conducted
with business and information technology (IT) specialists. Also, the participants were selected
using a set of criteria. The interviews stopped at a point of saturation, which means that no
new information was forthcoming. Additionally, existing documents were gathered and used to
complement the interview data. The university (CPUT) and the organisation’s ethics, including
participants’ consent, guided the data collection.
The data was analysed using the four moments of translation actor-network theory (ANT as a
lens to guide the data analysis. The theory was selected primarily for three reasons. Firstly, it
focuses on translation, required to understand how meanings are associated with events and
processes in mitigating financial crimes. Secondly, ANT enables an understanding of how actor
networks are consciously formed, which helps to determine the formation of groups
responsible for mitigating financial crimes in the organisation. Thirdly, ANT’s mantra “follow the
actors” was employed to follow the actors, from humans to non-humans, helping to gain a
deeper understanding of why things happened in the ways they did in mitigating financial
crimes in the organisation. From the analysis, seven factors were found to influence the use
of detective analytics to mitigate financial crimes in organisations. The factors are as follows; (1) Collaboration; (2) Corroboration; (3) Internalisation; (4) Externalisation; (5) Digitalisation;
(6) Organisational structure; and (7) Integrated analytics.
Activity theory (AT) was used as a lens to guide the interpretation of findings. The interpretation
revealed the links between the influencing factors (findings) including their attributes. Based
on the influencing factors, the links, and the attributes, a framework was developed, which can
be used to guide the adoption and implementation of detective analytics to trace, track, and
prevent financial crimes in financial institutions in South Africa.
The study contributes to both business and academic domains from theoretical, practical, and
methodological perspectives. Theoretically, the relationships between the influencing factors
are established. Practically, organisations can develop policy and governance frameworks to
prevent financial crimes, based on the influencing factors. Methodologically, the application of
ANT and AT advances the use of sociotechnical theories in detective analytics.
Additional information
Thesis (DPhil (Informatics))--Cape Peninsula University of Technology, 2024
File(s)![Thumbnail Image]()
Loading...
Name
Mlambo_Nontobeko_219040400.pdf
Size
1.44 MB
Format
Adobe PDF
Checksum
(MD5):f8ec5b9769ad492ac7dff9ad5df7fa36