The government of various countries are forming regulatory bodies to address the issue of money laundering. Along with this, companies under financial sector are also moving towards using anti-money laundering software to minimize the risk associated with transactions. Technological advancements in the financial industry is also resulting in the companies looking to improve their finance department by integrating advanced IT solution to ensure safety. Meanwhile, the growth in banking software industry is also resulting in the increasing incidences of money laundering. Companies are also focusing on developing anti-money laundering software with visualization tools as it significantly reduces the time required in analyzing the data, hypothesize monitoring strategies, and validate scenario deployment along with the scenario generation.
According to a new research by Transparency Market Research (TMR), the global market for anti-money laundering software is likely to experience healthy growth, registering 12.1% CAGR between 2017 and 2026. The global market for anti-money laundering software is also likely to reach US$ 4,262.0 million revenue towards 2026 end.
Transaction Monitoring Systems- Top-Selling Anti-Money Laundering Software Product
Among various products, transaction monitoring system is likely to emerge as the top-selling anti-money laundering software product. By the end of 2026, transaction monitoring systems is estimated to surpass US$ 2000 million revenue. Well-designed transaction monitoring system is considered to be an important part of an effective anti-money laundering compliance program by financial institutions. Owing to the rapid phase of technological advances and increasing money laundering practices, a lot of financial institutions are updating their transaction monitoring system and are also increasingly investing in the transaction monitoring systems.
Retail Banking to Emerge as the Largest End-User of Anti-Money Laundering Software
Retail banking is likely to emerge as the largest end-user of anti-money laundering software between 2017 and 2026. Retail banking is projected to bring in close to US$ 1,200 million revenue by 2026 end. Managing risk is the main priority in the retail banking sector. Hence, anti-money laundering helps retail banking to monitor, investigate and report transaction of suspicious nature to the central bank and intelligence unit of the respective country.
Transactional Monitoring Solution to Witness Maximum Traction in the Market
Compared to the various solution available, transactional monitoring solution is likely to witness maximum traction. Towards the end of 2026, transaction monitoring solution is estimated to exceed US$ 1,200 million revenue. Transactional monitoring solution allows financial institutions and banks to monitor transactions done by customers on daily basis in real-time. Companies are also developing transactional monitoring solutions with advanced features such as customer profiling, blacklist screening, etc.
On-premise to Account for Highest Share in terms of Revenue
Compared to cloud-based, on-premise is likely to dominate the market during 2017-2026. On-premise is estimated to surpass US$ 3,000 million revenue by the end of 2026. High level of security and features provided by on-premise anti-money laundering software is driving the demand for on-premise in the market.
North America to be the Largest Region in Terms of Revenue
North America is likely to be the largest region in the global market for anti-money laundering software market. Stringent regulations against money laundering in the U.S. and Canada is contributing to the growth of the region. Meanwhile, Europe followed by APEJ are also anticipated to witness impressive growth in the coming years.
Accenture Inc., SAS Institute Inc., Fiserv, Inc., Opentext, Experian, Oracle Corp., FICO TONBELLER, Ascent Technology Consulting, EastNets, Trulioo, BAE Systems, ACI Worldwide, Inc., NICE, Siron, NameScan, a member of the Neurocom group, and Verafin Inc., are prominent players in the global market for anti-money laundering software.
Global Anti-Money Laundering Software Market- Overview
The rise in financial frauds across the globe is resulting in the increasing demand for the software that can help in preventing the fraud related activities. The anti-money laundering software market is likely to witness high growth in the near future as it provides several benefits to the financial services industry. Hence, anti-money laundering software providers are focusing on improving software by integrating various advanced features that can help in minimizing the risk of money laundering.
Regulatory organizations worldwide are also moving towards making it necessary for financial institutions to adopt anti-money laundering software. The governments of various countries are also enforcing policies and laws to avoid unlawful financial activities. However, the high cost of implementation and difficulties in data interpretation restricting the growth of the global anti-money laundering software market. Meanwhile, integration of big data analytics with anti-money laundering software is also one of the latest trends in the market for anti-money laundering software.
Global Anti-Money Laundering Software Market- Research Methodology
The global anti-money laundering software market report offers key insights on the market based on top-down and bottom-up approach. The report provides a forecast on the global revenue, segments and key regions in the market. The report comprises market dynamics such as market driving factors, market trends, key opportunities in the market, and challenges in the global anti-money laundering software market. the primary and secondary research was also done in order to identify a current scenario in the market and opportunities in the global anti-money laundering software market. As the part of the primary research, expert interviews were conducted to get a clear picture of the market. While analyzing annual and financial reports formed the part of the secondary research.
The report also includes SWOT analysis and Porter’s five force analysis for better understanding of the market. Market attractiveness analysis was also conducted to identify various opportunities in the market. Incremental opportunity is also given in the report as it is one of the important factors that help manufacturers to identify growth opportunities. Advanced technologies, new product launches and research and development activities in the global anti-money laundering software market is also provided in the report.
The report also talks about various regulations imposed by the regulatory bodies on the market. The leading players currently active in the global anti-money laundering software is also given in the report. A study also offers profiles of the companies including financial and company overview, product portfolio, new product launch, and key developments.
Global Anti-Money Laundering Software Market- Segmentation
The global anti-money laundering software market is segmented on the basis of product type, end-user type, solution type, deployment type, and region. By product type, the segment includes transaction monitoring systems, customer identity management systems, Currency Transaction Reporting (CTR) Systems, and compliance management software.
Based on the end-user type, the market segment includes retail banking, corporate banking, private banking, investment banking, asset management, insurance, multiple banking services, legal service providers, and other end-users.
On the basis of solution type, the market includes transactional monitoring, KYC (Know Your Customer), fraud, risk & compliance management, watch-list screening, data warehouse management, analytics and visualization, alert management and reporting, case management, and other solutions. By deployment type, the segment includes cloud-based and on-premise.
The global anti-money laundering software market based on geography is divided into North America, Japan, Latin America, Asia Pacific Excluding Japan (APEJ), Europe, and the Middle East and Africa (MEA).
The report also provides extensive competitive analysis and profiles of the leading companies in the global anti-money laundering software market such as Fiserv, Inc., Accenture Inc., SAS Institute Inc., Opentext, Oracle Corp, Experian, FICO TONBELLER, EastNets, Ascent Technology Consulting, Trulioo., ACI Worldwide, Inc., BAE Systems, NICE, Verafin Inc., Siron, and NameScan, a member of the Neurocom group.