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Anti-money laundering (AML) software, typically refers to an integrated data model solution, which enables banks, financial institutions and enterprises to monitor customer behavior for suspected criminal financial activities through automated processes and offers better user authentication to detect and manage digital bank fraud, payment fraud, fraud analytics, card and emerging payments, internal threads, and fraud management capabilities.
AML solutions on the other hand offers data warehouse and data normalization which cover all aspects of trading and account activity for enterprises and aid in minimizing the risk of anonymity in fund transfer and transactions that enable money laundering activities. AML solution helps to reduce the risk of threats in cross-border transactions and the corruption of virtual currency and also the activities like Distributed Denial-Of-Service (DDoS), malware attacks and ransomwares.
The solutions enable fast regulatory reporting, proactive monitoring of end to end solutions, effective financial data management, and complete automation of processes. The major benefits offered by the anti-money laundering solutions include; 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 global Anti Money Laundering market is expected to grow at a robust CAGR over the forthcoming years.
The growth of this market is attributed towards major pertaining factors including; the surge in money laundering cases worldwide, the increasing stringent regulations and compliances for AML, the increasing need to get holistic view of data to curb financial crimes, the growth in IT spending among financial institutions, the increased need for automated transaction monitoring systems, increasing focus of financial institutions on digital payment-related issues, increased number of wired transactions, advent of technologies such as the blockchain, hefty fines for non-compliance with regulatory norms and the increasing adoption of cloud based services by various enterprises etc.
Additionally, the financial service industry has witnessed extensive research and innovation with rapid emergence of technology-led transformations in AML solutions including the integration of IT technologies in order to improve the operational efficiency of the organizations, data security and transparency in financial operations. Enterprises are heavily implementing these advanced technologies, as legacy solutions do not guarantee enhanced security. Technologies including authentication through smartphones, biometrics and behaviour analysis are estimated to expand the anti money laundering (AML) market growth in the next few years.
Moreover, governments are increasingly 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. This is resulting in massive growth of the overall AML market.
Furthermore, the increasing adoption of advanced analytics in AML and integration of AI, ML, and big data technologies in developing AML solutions, the increasing adoption of digital payments, rising adoption of the transaction monitoring systems by the various financial institutions, the rising analytics applications for risk management, growing governmental initiatives and prioritized activities, the increasing number of initiatives for training employees to help them learn and report suspicious activities to tackle money laundering, the rising concerns regarding growing incidences of terrorism, corruption and organized crimes, and its negative impact on security, peace and development of countries are further expected to fuel demand for advanced and innovative AML solutions which in turn will boost the growth of this market.
More importantly, the outbreak of COVID-19 has brought traction in the growth of digital technologies. Due to the prevalence of lockdowns, people have now shifted to adopt digital platforms to fulfill daily requirements. With the increased use of digital wallets, the chances of transacting illegal money have also increased, thereby fueling the demand for advanced AML solutions.
However, the high implementation cost associated with these softwares, complexities associated with the implementation and interpretation of data, lack of skilled professionals with in-depth knowledge required for operating these systems, the inability to detect fraudulent activities at the initial stages and issues pertaining to data security are factors that restrain the growth of this market.
ANTI-MONEY LAUNDERING MARKET SEGMENTATION:
By Deployment Mode:
By Organization Size:
By End-Use Vertical:
The North American is the largest regional market for anti-money laundering solutions and services and is expected to continue to dominate the market in the next few years as well owing to the high number of early adopters of the anti-money laundering systems, the presence of major established market players, the increasing demand for cloud-based AML solutions, increasing technological advancements and innovations in AI and ML based solutions, the increasing implementation of regulations and laws related to AML, increased illegal activities that facilitate the use of cash for drugs, human smuggling/trafficking, and corruption in the region etc. The U.S. is the major contributor in the region.
The Asia Pacific region is the fastest growing regional market for AML services and solutions and is anticipated to grow in the same pace in the upcoming years too. This can be well attributed to factors such as the increasing number of frauds and money laundering activities in the emerging countries of the region, growth in urbanization and industrialization, the rise in bank IT spending and increase in government initiatives, the increase in adoption of anti-money laundering solutions by the populace, the growing KYC related activities in the region etc. India along with China and Japan are the major contributors in the region.
The European region holds a substantial share in the anti-money laundering market and is projected to register significant growth in the forthcoming years owing to the early adoption of new technologies for AML, the growing formulation of stringent government regulations to deploy AML solutions in financial institutions and the and emerging trends related to trade-based money laundering and virtual currencies etc. in the region. The major contributors in the region include Germany, France, Italy, Spain and the U.K of which Germany is the currently the leader.
FEW KEY PLAYERS IN ANTI-MONEY LAUNDERING MARKET:
Timeline Considered for Analysis:
- 2019: Base Year
- 2020 to 2025: Forecast Period
Research Scope and Deliverables
Overview & Executive Summary
Market Drivers, Trends, Challenges and Opportunities
Market Size and Forecast Projections
Macroeconomic Indicators of Various Countries Impacting the Growth of the Market
Extensive Coverage of Industry Players including Recent Product Launches and Market Activities
Porter’s Five Force Analysis
Market Segmentation Analysis:
Industry report analyzes the global anti-money laundering market by the following segments:
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Key Questions Answered in the Global Anti-Money Laundering Industry Report
The report offers a comprehensive insight on the Anti-Money Laundering (AML) Software Market share, competitor landscape, market trends, growth, revenue, and key driver’s analysis with coverage of key players, top geographies, product types and end user.
Exhaustive secondary research and in-depth primary interviews with industry experts has been conducted to present qualitative and quantitative insights in the report.
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