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AI-Based Anti-Money Laundering (AML) Solutions Market

Increase in Financial Crime and Money Laundering Activities to Boost Demand for AI-based AML Solutions, Evaluates Fact.MR

Published : 07 Sep 2021 Industry: Technology

According to a new study by Fact.MR, a market research and competitive intelligence provider, the global AI-based anti-money laundering (AML) solutions market is anticipated to add 8X value by 2031.

To strengthen the financial systems against money laundering, terrorist financing, and other financial crimes, artificial intelligence-based anti-money laundering (AML) compliance has been helping the financial system with its robust capabilities. AI-enabled AML technology compliance has changed dramatically with the addition of regulatory layers in the financial jurisdiction. Large and small banks are expected to spend 0.5% to 1.4% of their operating expenses on AI-based AML solutions.

Increasing anti-money laundering activities and the inability to track them is forcing regulators to fine financial institutions, owing to which, these institutions have increased their investments towards the same. Based on researches, American banks are spending nearly US$ 23.5 Bn, followed by European banks at US$ 20 Bn, every year on AML solutions.

Moreover, AI-based AML solutions are majorly used to monitor transactions, detect patterns, and inform management by generating a score of risk so that appropriate steps can be taken at right time. During FY2019 and FY2020, a lot of banks have fully adopted AI in their AML processes to avoid reputation risk and hefty penalties.

Key Takeaways from Market Study

  • Banks, as end users, capture nearly half of the global market share, and are set to create an absolute $ opportunity of more than US$ 25 Bn over 2021-2031
  • Among the use cases, fraud, risk & compliance has been the fastest-growing segment.
  • The Europe AI-based AML solutions market set to dominate in 2021, where Germany and France are set to acquire more than one-fourth market share and generate abundant revenue.
  • The market in China and Thailand is expected to dominate Asia Pacific with more than one-third and one-sixth market share, respectively.

“High R&D on artificial intelligence to improve overall product quality and increase in fraudulent & money laundering activities are set to aid market growth over the coming years,” says a Fact.MR analyst.

Winning Strategy

Key players have been spending on research & development to come up with better quality and improved accuracy in pattern detection. These enhancements will drive demand for AI-based AML solutions in the medium- to long-term forecast period.

More Valuable Insights

Fact.MR, in its new offering, presents an unbiased analysis of the global AI based AML market, presenting historical demand data (2016-2020) and forecast statistics for the period of 2021-2031.

The study divulges essential insights on the market on the basis of use case (transaction monitoring, KYC (know your customer, fraud, risk & compliance (trade AML, capital markets AML, correspondent banking AML, fraud, credit risk) crime pattern detection, risk scoring customers and accounts, watch-list screening, alert management and reporting, and other solutions) and end user (banks, insurance companies, asset management, money service businesses, securities, and other FSIs), across six major regions of the world (North America, Latin America, Europe, East Asia, South Asia & Oceania, and MEA).

Fact.MR’s Domain Knowledge in Technology Division

Expert analysis, actionable insights, and strategic recommendations of the highly seasoned Technology Division team at Fact.MR helps clients from across the globe with their unique business intelligence needs.

With a repertoire of over thousand reports and 1 million-plus data points, the team has analyzed the Technology division across 50+ countries for over a decade. The team provides unmatched end-to-end research and consulting services. Reach out to explore how we can help.

For more information, refer to our market research report or contact the PR author.

Shubham Patidar

Fact.MR

Consultant – Technology Division

E-mail: shubham@factmr.com

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Need for Strengthening of Financial Systems to Boost the AI-Based Anti-Money Laundering (AML) Solutions Market Growth during 2021-2031