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Market Summary



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The global Anti Money Laundering Market is forecasted to grow at a rate of 21.7% from USD 1.24 Billion in 2019 to USD 5.70 Billion in 2027. The anti-money laundering market highlights the revenue generated by the vendors in the market by offering solutions for detecting suspicious activities by persons or organizations that are trying to generate income through illegal actions.

Increased adoption of digital payments, organizations need to comply with stringent regulatory compliance, and rising analytics applications for risk management are the main growth factors driving the anti-money laundering market. The challenge in the anti-money laundering market is the lack of skilled professionals required for operating these systems and the inability to detect fraudulent activities at the initial stages. The solutions in the anti-money laundering market use financial transaction data from multiple sources such as ERP systems, accounting software, and different financial software.

Against tax evasion, programming is utilized by organizations to recognize suspicious actions by people or associations who are attempting to create pay through illicit activities. The anti-money laundering solution is utilized by accountants to follow guidelines and compliances, for instance, the Bank Secrecy Act and with corporate arrangements in regards to budgetary extortion. Bookkeepers and chiefs from all divisions can earn profit by utilizing this sort of solution when assessing new clients and solution providers. Additionally, hostile to illegal tax avoidance programming is utilized by banks and financial institutions to identify suspicious and false exercises that may affect their productivity and harm their notoriety.

The anti-money laundering market is most favorable for the financial solution providers and the security and compliance vendors. FICO, NICE, and BAE Systems are some of the significant solution vendors in the anti-money laundering market. These providers offer anti-money laundering solutions for better user authentication to detect and manage digital bank fraud, payment fraud, fraud analytics, card and emerging payments, internal threads, and fraud management capabilities. The solutions enable fast regulatory reporting, proactive monitoring of end to end solutions, effective financial data management, and automation of the overall process. The key benefits offered by the anti-money laundering solutions is the seamless and simplified integration of solutions, robust data analysis, real-time updated customer information, improved risk protection, and improved efficiency along with faster processing of cases. The major end-users of the anti-money laundering systems are the banking and financial institutions, insurance providers, and private that organizations.

Anti-money laundering policy has become stricter with an increase in digitalization. The anti-money laundering laws have prevented the illegal activities. Several anti-money laundering acts have been issued for the prevention of these measures.

Technology Type Outlook:



Transaction monitoring is estimated to hold the largest market share during the forecast period in the anti-money laundering market due to the need for identifying fraudulent activities in the financial and customer transactions.

The KYC is estimated to have the fastest-growing segment due to the increasing use of KYC in every industry and regulations for the use of KYC for banking and financial transactions in developing countries such as India.

Deployment Type Outlook:



The Cloud segment is expected to register the highest CAGR of 23.7% owing to the increasing number of digital payments and the increased number of fraudulent activities and digitalization in the banking and the financial systems. The cloud deployment model offers low-cost installations due to the elimination of infrastructure costs along with benefits such as scalability, reliability, availability, and security.

Organization Size Outlook:



The large enterprises dominate the major share of the Anti-Money laundering market. However, the increased investment in SMEs and the startups and the venture funding have encouraged many small players to develop digitally advanced anti-money laundering solutions. Small and medium-sized enterprises cater to a large number of customers all across the globe. The constraints in financials limit these companies to install robust security solutions.

Regional Outlook:



The Asia Pacific has a huge potential in the market due to rapid urbanization and global digitization, and the KYC activities are growing rapidly that is expected to supplement the growth of the Anti-Money Laundering market. Asia Pacific region has become a focal point of attraction for many multinational companies previously concentrated in the North America and Europe region, trying to expand their business.

North America is expected to major revenue-generating a region of the market as the presence of well-established solution providers as well as the high density of key players in this region.

Market-O-Nomics

Extensive research and innovation are also expected to grow the market as the market is highly fragmented in nature, and companies are investing heavily in such activities to constantly roll out innovative products to capture the majority of the market.

Implementation of several anti-money regulations has also helped in reducing the risk associated with the activity.

Expanding the spectrum of solutions and services being offered by organizations is expected to elevate the need solution as companies are equally focusing on enhancing their compliance management and regulation management activities.

Global modernization and the dawn of technologies like the blockchain, has increased the number of digital financial transactions using numerous smart electronic devices like smartphones, tablets, and laptops, which is expected to increase the use of anti-money laundering and expand its market size.

Governments are investing in the digitalization of the financial and the banking industry to help modernize the state-run services, which are availed by people for digital payments, online banking, and UPI payments. These services critically contribute to the revenue generated by countries. It is expected this factor would help the anti-money laundering market grow.

Companies considered and profiled in this market study

FICO, ACI Worldwide, BAE Systems, Oracle, Experian, Nice, Lexisnexis Risk Solutions, Fiserv, FIS, Transunion, Napier, Caseware, Nelito Systems, Finacus Solutions, and Workfusion.

The players operating in the market have undertaken a number of strategies related to the market in the period 2017-2020. The key highlight is:

In January 2019, NICE Actimize introduced the IFM-X Integrated Fraud Management (IFM) platform that leverages automation and machine learning technologies for minimizing fraud and money-laundering attacks along with reducing the total cost of system implementation.

In December 2019, RDC and Monzo Expand Anti-money Laundering Partnership.

Start-up Traction

The industry offers numerous growth opportunities. Thus, a number of startups providing innovative products and technologies have been entering the market. Some of them include Bitwala, Alloy, Sumsub, Signzy, Coinfirm, SETL, and KYC360 Technologies, among others.

Deals Landscape

Mergers and Acquisitions are an integral part of the Anti-Money Laundering Market industry. Along with the companies operating in the market, other key market players have also been entering the industry.

In September 2019, FICO partnered with Visma Connect, provider of payment services, information portals, and middleware solutions; to deliver Anti-Financial Crime solutions for Know Your Customer service, anti-money laundering and real-time sanctions selection for banks, Financial Techs, payment institutions, and third-party corporations.

In July 2019, FIS acquired Worldpay, a leading global eCommerce and payment technology company; owing to the acquisition, FIS aims to improve its financial product portfolio and expand its geographical footprint in the market.

Expert Insights:

Reports and Data forecast promising developments for increased adoption of Anti Money Laundering Market. According to industry experts, solutions relating to Anti Money Laundering Market will usher in the market and are soon to be seen in the industry. Moreover, new manufacturers are expected to enter the market, which is likely to provide platform-centric solutions for production applications. New companies entering the industry would focus on innovating and providing through advanced technologies, thereby reducing complexity and lowering the overall total cost of operation. Experts also believe that increase in the adoption of advanced technologies for research in emerging nations would be a key development area for the industry.

Segments Covered in the report

This report forecasts revenue growth at a global, regional & country level, and provides an analysis of the market trends in each of the sub-segments from 2017 to 2027. The scope of the report can be defined as:

For the purpose of this report, Reports and Data have segmented the global Anti Money Laundering Market on the basis of component type, technology, deployment type, organization size, and region:

Component Type Outlook (Revenue, USD Billion; 2017-2027)

Solution

Services Consulting Services Risk Assessment System Integration and deployment Technical Support Managed



Technology Outlook (Revenue, USD Billion; 2017-2027)

Know Your Customer (KYC) Systems

Transaction Monitoring

Case Management

Compliance Management

Auditing and Reporting

Deployment Type Outlook (Revenue, USD Billion; 2017-2027)

On-Premises

Cloud

Organization Size Type Outlook (Revenue, USD Billion; 2017-2027)

Large Enterprises

Small and Medium Scale Enterprises

Regional Outlook (Revenue, USD Billion; 2017-2027)

North America U.S Canada

Europe Germany U.K France BENELUX Rest of Europe

Asia Pacific China Japan South Korea Rest of APAC

Latin America Brazil Rest of LATAM

MEA Saudi Arabia UAE Rest of MEA

