Total spending on third-party AML systems is projected increase by significant 121% by 2030, according to an update from the team at Juniper Research. This latest estimated figure would be up considerably from $33.9 billion this year.
As stated in the report, gaps in transaction monitoring and beneficial ownership transparency are the main vulnerabilities said to be driving spend.
With increasingly complex regulatory frameworks across global jurisdictions, firms are said to be turning to AI-driven screening as well as advanced analytics to improve detection while addressing “high false-positive rates.” These can be very problematic because they can turn down potentially steady revenue from legit entities. And this can be quite costly to business organizations just like fraudulent activities.
The report also revealed that banking institutions are to account for 64% of AML spending by the year 2030, due in part to the sustained exposure to regulatory oversight measures. However, not enough is being done to ensure adequate consumer protection and a combination of better digital AML tools, effective implementation, and overall better security practices are badly needed to curb financial crime.
Juniper Research’s recent AML Systems Market Competitor Leaderboard has reportedly evaluated “18 key AML system vendors against a series of robust criteria, including segment coverage, service offerings, and various capacity and capability measures.”
According to the Juniper Research report, the top 3 vendors for 2025 are:
- LexisNexis Risk Solutions
- Oracle
- Experian
Juniper Research has also determined that major AML vendors are now focused on increasingly expanding their scope of their product offerings in order to optimally address a range of evolving business requirements.
These reportedly include real-time data integration, transaction monitoring for cryptocurrencies and blockchain / DLT network activity, cloud-based, API-first solutions for scalability, as well as explainable AI for ensuring adequate regulatory compliance.
AML vendors need to look to move beyond more conventional compliance tools and aim to deliver on intelligent, adaptable systems that are able to reliably anticipate risks across a range of different sectors. Tools that can help with taking proactive measures before malicious or suspicious activities are actually carried out can go a long way in terms of protecting businesses and consumers in the financial services and banking sector.
By offering more sector-specific risk models and explainable AI, institutions are able to customise detection rules and also justify decisions to regulatory authorities; thus, minimising the overall impact of financial crime, the report from Juniper Research has concluded.