The
anti-money laundering (AML) software market is expected to grow by USD 1.18 billion during 2020-2024,
according to the latest market research report by Technavio.
AML software helps banks in risk management with its predictive
models that analyze historical data and match it with the outcomes of the
alert. It also provides vigilance for non-obvious transaction patterns
indicative of risk. The focus of predictive models is to provide deeper insight
into compliance risk that was previously hidden. Some advanced features, such
as automated investigation, help in the efficient management of risks. The
automated investigation feature investigates each alert and ranks them based on
the risk calculated by the predictive model and the organization's threshold
score. The feature also auto-closes alerts with low scores and highlights
alerts that match the organization's risk tolerance and operational goals. Such
features of AML and increasing need for risk management are expected to drive
the growth of the market during the forecast period.
As per Technavio, the integration of AML software with
visualization tools will have a positive impact on the market and contribute to
its growth significantly over the forecast period. This research report also
analyzes other significant trends and market drivers that will influence market
growth over 2020-2024.
Anti-Money Laundering Software Market : Integration of AML
Software with Visualization Tools
The integration of AML software with visualization tools is
gaining popularity. During a large number of transactions that take place in
banks every day, even suspicious transactions will appear legitimate, and
tracking these suspicious transactions is difficult. With the increasing number
of fraudulent activities, identifying suspicious transactions using search
options of predefined patterns is insufficient. AML software integrated with
visualizations tools helps in identifying patterns based on identifying
specific keywords within the transactions. The software reduces the time
required to analyze data. AML software helps in obtaining insights from data
with visualization tools that test hypotheses, simulate, and validate scenarios
to find unusual transactions and patterns. Thus, the integration of AML
software with visualization tools is expected to drive the growth of the market.
Anti-Money Laundering Software Market: Segmentation Analysis
This market research report segments the anti-money laundering software market by
deployment (on-premise and cloud-based), and geography (APAC, Europe, MEA,
North America and South America).
The North American region led the anti-money laundering software
market in 2019, followed by Europe, APAC, MEA and South America. However,
during the forecast period, the APAC region is expected to register the highest
incremental growth due to factors such as the broadening of the regulatory laws
to new segments, such as small banks, credit unions, brokerages, and insurers
and stringent AML regulations across the region.
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