Money laundering is a term widely associated with financial and business crime, and sometimes defines misuse of the financial system, including terrorism financing and evasion of international sanctions. Due to these money laundering activities, the threat to national security has increased and the governments have become predominantly active in the prevention of such launderings. Over the last few years, financial services industry has undergone significant modifications in technology that can fight money laundering. The companies in the financial industry are integrating new technology and innovative IT solutions to increase their efficiency in combating the menace of money laundering.
The financial services industry is customer-centric and to provide better services to their consumer base is necessary to survive in this industry. The consumers have also put forth the demand for better, seamless, and secure services from their providers. The banking software sector in the industry is gaining pace with its different range of activities, utilizing resources to create value and benefit society, globally, in terms of understanding, exploring, researching, managing, and utilizing financial services. The digitization of services is expected to significantly transform the financial services in the coming years, with several technological evolutions and revolutions expected to facilitate global, multi-service, low-cost, and digital banking.
With such rapid technological advancements in the financial services and banking software industry, there has been an increase in the demand for regulators to counter the upsurge in the financing of terrorism and money laundering incidences. Hence, the anti-money laundering market is gaining pace rapidly, and the global anti-money laundering (AML) software market is expected to reach $14.2 billion by 2023. The factors that are playing a significant role in the growth of this market are the need for monitoring suspicious transactions, regulatory compliance requirements of financial institutions with international regulatory bodies along with the analysis of historical consumer data analysis for risk management.
Among different types of software available in the market, on-premise deployment type contributed the largest share in the AML software market in the year 2016, owing to the high level of consumer data security provided, which higher than cloud deployment. Despite this, cloud deployment is expected to grow at the highest rate during 2017 and 2023. The reason for this growth is the ease of subscription as this delivery model requires monthly or yearly subscription which is cheaper than on-premise deployment software. Another advantage of the cloud-based deployment model is that it involves a combination of cloud computing with wireless sensor networking, and mobile computing to automatically provide the users with the required data.
BIS Research has conducted an extensive research on global anti-money laundering market, and compiled the observations and insights in a report titled ‘Global Anti Money Laundering (AML) Software Market – Analysis and Forecast (2017-2023)’. The market intelligence report aims at providing an in-depth analysis of the key development strategies, marketing strategies and market trend dynamics which include drivers, restraints, and opportunities prevailing in the industry.
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