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Informative Report on Anti-Money Laundering Software Market Bis Research

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BIS Research
Informative Report on Anti-Money Laundering Software Market Bis Research

Rapid advancements in financial services and technologies effectively help facilitate smooth and prompt transactions of money worldwide. However, this exposes the financial institutions to the risk of money laundering. Therefore, it has become crucial and urgent to combat money laundering. The banking software industry consists of a range of activities, which are utilizing resources to create value and benefit society, globally, in terms of understanding, exploring, researching, managing, and utilizing financial services. It is expected that in the next decade, the banking industry will witness both a revolution and an evolution, in terms of facilitating global, multi-service, low-cost, and digital banking. However, with rapid growth in the banking software industry, there is an increasing demand for regulators to counter the upsurge in the financing of terrorism and money laundering incidences.


Read Report Overview: https://bisresearch.com/industry-report/global-anti-money-laundering-software-market.html


The market research study offers a broad perspective on the anti-money laundering (AML) software, delivery modes, and software types. The report also provides an analysis of the market penetration of the AML software across different regions and countries. The global AML software market research study offers a wide perspective on the analysis of the industry. 


Over the past five years, the financial service industry has witnessed far-reaching technology-led transformations, with companies looking for improving the efficiency of their financial departments by incorporating innovative IT solutions. The banking software industry has witnessed significant developments in the past decade, in terms of understanding, exploring, researching, managing, and utilizing resources to create value. A similar trend is expected to prevail in the next decade, and the banking software industry is expected to evolve in terms of facilitating global, multi-service, low-cost, and digital banking. However, over the past decade, significant threats of terrorism from money laundering have become a major concern for regulatory bodies such as Financial Crimes Enforcement Network (FinCEN) and Financial Action Task Force (FATF). Therefore, with the growth in the banking software industry, there is an increasing demand for regulators, such as anti-money laundering (AML) software, to counter the upsurge in the financing of terrorism and money laundering incidences. Money laundering, the process of showing illegally-acquired money to appear legal, has been a significant challenge for major economies since the early 1990s. It generally involves three steps: placement, layering, and integration.


Factors Affecting Global AML Software Market: 


The anti-money laundering software market has witnessed a high growth rate over the years, owing to factors such as an increased need for automated transaction monitoring systems, an increasing number of wired transactions, and hefty fines for non-compliance with regulatory norms. Additionally, the integration of big data analytics with anti-money laundering software is another key factor driving the market. 


The increasing degree of entry of AML software in the cryptocurrency market, adoption of AML in emerging economies, and robotic process automation (RPA) in AML and KYC are the major factors that are expected to create lucrative opportunities for the market during the forecast period 2020-2025. The market is currently replete with advancements in AML systems to promote digital currency activities. The U.S. government is presently focusing on making virtual currency an official mode of payment. Therefore, the vendors of AML software can leverage the opportunity to expand their market and ensure that money laundering does not take place. Additionally, machine learning and artificial intelligence (AI) are among the key technologies that are expected to guide the future of the AML software market. 


Transaction Monitoring Software to Dominate AML Software Market:


AML system is a combination of different types of software, including transaction monitoring software, currency transaction reporting software, customer identity management software, and compliance management software, among others. These software types focus on identifying suspicious patterns of transactions, which may lead to the filing of suspicious transaction reports (STRs) or suspicious activity reports (SARs).


Competitive Landscape


The AML software market is currently one of the most highly competitive industries, with leading players actively competing against each other to gain a greater share in the AML software industry. 


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The product launches strategy has been adopted by several reputed market players such as NICE Actimize, BAE Systems, and Experian PLC, among others. NICE Actimize introduced Robotic Automated Process platform in May 2017. The technology can process a high volume of data automatically and allows the investigator to focus on making more strategic decisions. In October 2016, BAE Systems introduced AML Optimisation, a tool that helps companies to detect fraudsters and comply with new AML laws and regulations more quickly and efficiently. In June 2016, Experian PLC announced the introduction of Bank Wizard Absolute, a solution to verify the account information of the customers before the payments are made.


The industry has witnessed significant growth in the past two years, i.e., 2018-2019. However, end-to-end solution is the major requirement in the current scenario for the efficient functioning of AML software solutions. Additionally, a complete solution enhances the capability and efficiency of the system by providing easy interaction between the different types of AML software. Financial institutions are also focusing on automation, improving performance, and increasing transparency along with the common issue of false positives.

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