Anti-Money Laundering (AML) Software Market size is set to grow by USD 3.56 billion from 2024-2028, Increased need for suspicious activity reporting to boost the market growth, Technavio

25.06.24 23:25 Uhr

NEW YORK, June 25, 2024 /PRNewswire/ -- The global anti-money laundering (AML) software market  size is estimated to grow by USD 3.56 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 16.54%  during the forecast period.  Increased need for suspicious activity reporting is driving market growth, with a trend towards integration of aml software with visualization tools. However, high cost of implementation  poses a challenge. Key market players include Abrigo, ACI Worldwide Inc., Acuity Knowledge Partner, Ascent, BAE Systems Plc, EastNets, Exiger, Fair Isaac Corp., International Business Machines Corp., Moodys Corp., NICE Ltd., OpenText Corp., Oracle Corp., Refinitiv, Sanction Scanner, SAS Institute Inc., Thomson Reuters Corp., Trulioo Information Services Inc., Truth Technologies Inc., and Verafin Inc..

Technavio has announced its latest market research report titled Global anti-money laundering (AML) software market 2024-2028

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Forecast period

2024-2028

Base Year

2023

Historic Data

2018 - 2022

Segment Covered

Deployment (On-premises and Cloud-based), Component (Software and Services), and Geography (North America, Europe, APAC, Middle East and Africa, and South America)

Region Covered

North America, Europe, APAC, Middle East and Africa, and South America

Key companies profiled

Abrigo, ACI Worldwide Inc., Acuity Knowledge Partner, Ascent, BAE Systems Plc, EastNets, Exiger, Fair Isaac Corp., International Business Machines Corp., Moodys Corp., NICE Ltd., OpenText Corp., Oracle Corp., Refinitiv, Sanction Scanner, SAS Institute Inc., Thomson Reuters Corp., Trulioo Information Services Inc., Truth Technologies Inc., and Verafin Inc.

Key Market Trends Fueling Growth

Anti-Money Laundering (AML) software market growth is driven by the integration of visualization tools. These tools help identify suspicious transactions by detecting patterns with specific keywords. They reduce analysis time, automate suspicious activity detection, and comply with regulations. Benefits include understanding customer-account relationships, scenario generation, and incorporating diverse investigation practices. Advanced technology adoption positively impacts market growth. 

The Anti-Money Laundering (AML) software market is witnessing significant growth due to the increasing need for financial institutions to comply with regulations. Policies such as KYC (Know Your Customer) and AML require institutions to identify and report suspicious transactions. Solutions like AML software and services help in preventing money laundering and terrorist financing. These tools use various techniques like pattern recognition, transaction monitoring, and customer profiling. Additionally, they provide real-time alerts and reports to ensure regulatory compliance. The market is also seeing advancements in machine learning and artificial intelligence to enhance detection capabilities. Overall, the AML software market is a crucial component in the financial industry's efforts to maintain transparency and security. 

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Market Challenges

  • The deployment of Anti-Money Laundering (AML) software involves significant expenses due to defining requirements and a lengthy implementation process. Once installed, modifications are costly, necessitating additional infrastructure, complex programming, and data integration efforts. Vendors often charge extra for software updates, which may be mandatory for continued technical support. Costs vary with company size, with larger firms spending more. These high expenses may hinder the growth of the AML software market.
  • The Anti-Money Laundering (AML) software market faces several challenges in ensuring effective compliance. One major challenge is the complexity of identifying and verifying clients, especially in large volumes. This requires advanced technology and robust processes to prevent potential money laundering activities. Another challenge is the need to stay updated with ever-evolving regulations and adapt to new compliance requirements. Additionally, integrating AML software with existing systems and ensuring data security are significant hurdles. Properly managing these challenges is crucial for financial institutions to maintain a strong compliance posture and mitigate financial risks.

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Segment Overview 

This anti-money laundering (aml) software market report extensively covers market segmentation by

  • Deployment 
    • 1.1 On-premises
    • 1.2 Cloud-based
  • Component 
    • 2.1 Software
    • 2.2 Services
  • Geography 
    • 3.1 North America
    • 3.2 Europe
    • 3.3 APAC
    • 3.4 Middle East and Africa
    • 3.5 South America

    1.1 On-premises-  The on-premises AML software market holds a significant share due to its advanced security features, enterprise-wide monitoring capabilities, and customization options. However, organizations face additional costs for maintenance, upgrades, and user support. Despite these expenses, large financial firms continue to adopt on-premises solutions for their complex operations due to their robustness and regulatory compliance. The market is projected to grow steadily during the forecast period.

    For more information on market segmentation with geographical analysis including forecast (2024-2028) and historic data (2018 - 2022)  - Download a Sample Report

    Research Analysis

    The Anti-Money Laundering (AML) software market is experiencing significant growth due to the increasing prevalence of financial crimes in digital payments and internet banking. Organizations are implementing cloud-based AML solutions to enhance security measures and address the sophistication of attacks from cybercriminals. Technical improvements and customer preferences are driving the demand for advanced AML skills and security protocols to protect private client information and ensure transparency in funding sources. However, the technological complexities of AML systems can pose challenges for businesses, particularly in identifying and mitigating risks associated with shell companies, lack of awareness, and government regulations. Criminal groups continue to exploit vulnerabilities, employing tactics such as ransomware attacks, identity theft, and cryptocurrency-related scams. Expertise in AML technologies and regulations is essential to safeguard financial systems from these threats.

    Market Research Overview

    The Anti-Money Laundering (AML) software market refers to the industry that provides solutions to help businesses and financial institutions comply with regulations aimed at preventing money laundering and financing of terrorism. These solutions utilize advanced technologies such as artificial intelligence, machine learning, and risk scoring to analyze transactions, identify suspicious patterns, and ensure regulatory compliance. The market is driven by increasing global regulations, growing financial crimes, and the need for automated and efficient compliance processes. The software assists in tasks like customer due diligence, transaction monitoring, and reporting to the relevant authorities. It is a critical component in maintaining the integrity of financial systems and protecting against financial crimes.

    Table of Contents:

    1 Executive Summary
    2 Market Landscape
    3 Market Sizing
    4 Historic Market Size
    5 Five Forces Analysis
    6 Market Segmentation

    • Deployment
      • On-premises
      • Cloud-based
    • Component
      • Software
      • Services
    • Geography
      • North America
      • Europe
      • APAC
      • Middle East And Africa
      • South America

    7 Customer Landscape
    8 Geographic Landscape
    9 Drivers, Challenges, and Trends
    10 Company Landscape
    11 Company Analysis
    12 Appendix

    About Technavio

    Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

    With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

    Contacts

    Technavio Research
    Jesse Maida
    Media & Marketing Executive
    US: +1 844 364 1100
    UK: +44 203 893 3200
    Email: media@technavio.com
    Website: www.technavio.com/

    Global anti-money laundering (AML) software market 2024-2028

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    SOURCE Technavio