Anti-Money Laundering (AML) Market size worth $5 Bn by 2027
Published Date: September 7, 2021 Authors: Preeti Wadhwani, Smriti Loomba
Anti-Money Laundering Market size is set to surpass USD 5 billion by 2027, according to a new research report by Global Market Insights Inc.
Increasing adoption of solutions & services to safeguard the business from criminal groups and organized mafia is boosting the AML market growth. AML helps enterprises to detect suspicious transactions and customer data, providing important details related to government regulations & corporate policies. The increasing digitization across multiple industry verticals and rise in the number of digital channels & payment methods have led to complexities in the payment chain.
The increasing adoption of customer identity management across BFSI to fuel industry statistics
The customer identity management segment is expected to grow at over 15% CAGR through 2027 on account of the increasing deployment for customer verification, reducing the risks of money laundering. The solution helps banks & other financial institutions with proper identification & verification of customer identity, tracking customers’ business transactions to manage the risks carefully & serve them better. Severe risks of terror funding and rise in criminal activities due to money laundering have increased the adoption of customer identity management solutions.
Get more details on this report - Request Free Sample PDF
On-premise deployment model to safeguard critical data from malicious threats
The on-premise segment held more than 60% of the anti-money laundering market in 2020 owing to the growing demand to control and manage AML solutions by in-house resources to safeguard critical data from malicious threats. In an on-premises environment, AML resources are deployed in-house and within an enterprise's network infrastructure. This provides customization in accordance with the enterprise infrastructure & business requirements. Moreover, tight control on sensitive financial data offered by on-premise solutions are contributing to the market expansion.
Browse key industry insights spread across 300 pages with 434 market data tables and 38 figures & charts from the report, “Anti-Money Laundering (AML) Market Size By Component (Solution [Customer Identity Management, Compliance Management, Currency Transaction Reporting, Transaction Monitoring], Service [Professional Service, Managed Service]), By Deployment Model (On-premise, Cloud), By Organization Size (Large Enterprises, SMEs), By Application (BFSI, IT & Telecom, Government & Public Sector, Healthcare, Retail, Transportation & Logistics), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
The rising online transactions across SMEs to dominate the market revenue
The increasing adoption of AML solutions & services across SMEs is poised to grow through 2027. The rise in online shopping coupled with the proliferation of digital payment methods and fewer possibilities for customer verification due to cross-border trade is propelling the fraudulent activities. AML helps SMEs to improve the risk assessment methodology and provides consulting & training on government regulations and multiple anti-money laundering laws applicable across various industries.
Growing focus on anti-money laundering compliances by the IT & telecom sector to support the market demand
The anti-money laundering market from IT & telecom sector is anticipated to observe growth rate of about 20% during 2021 to 2027 driven by the shortening transaction time and rise in the number of digital channels & payment methods, increasing complexities in the payment chain. The telecom sector has higher money flows in the online channel, creating the demand to analyze & monitor external frauds and fraudulent activities causing financial, material, and reputational losses, augmenting the industry growth.
The presence of major market players offering innovative solutions to spur the North America market share
North America is predicted to generate a revenue of above USD 2 billion by 2027. The growth is attributed to the presence of prominent companies and their increasing investments in R&D to enhance AML solutions. Stringent government regulations related to data privacy, money laundering, and other fraudulent activities in the region are enhancing the deployment of AML solutions & services across multiple industry verticals. Regulatory enforcements and inspections will lead to a decline in fraud rates in the region.
Focus on product development by key players to boost the anti-money laundering market share
The industry participants are focusing on innovative product development initiatives to address the growing market demand. For instance, In July 2020, NICE Actimize, a software company launched Surveil X, a trade surveillance solution for financial companies. The new solution helped financial customers to deploy custom analytics risk detection models to remove the regulatory & operational risk gaps. This launch helped the company to strengthen its portfolio and acquire a competitive position in the market.
Some of the key anti-money laundering market players are Accenture PLC, ACI Worldwide, BAE Systems PLC, CaseWare International Inc., Cognizant Technology Solutions Corporation, Experian PLC, Fair Isaac Corporation (FICO), Finacus Solutions Private Limited, FIS, Inc., Fiserv Inc., Lexisnexis Risk Solutions Inc., Napier Technologies Limited, Nelito Systems Ltd., NICE Actimize, OpenText Corporation, Oracle Corporation, SAS Institute, Inc., Tata Consultancy Services Ltd. (TCS), Trulioo Information Services Inc., and WorkFusion, Inc.