Transaction Monitoring Market

Global Transaction Monitoring Market Size (2024 to 2032)

The global transaction monitoring market was worth USD 9.59 billion in 2023. The global market is predicted to reach USD 10.95 billion in 2024 and USD 31.68 billion by 2032, growing at a CAGR of 14.20% during the forecast period.

Recognizing doubtful transactions and studying a customer's transactions are the key properties of transaction monitoring. Additionally, to improve risk management and reduce false positives, AML automation is the only solution for all businesses within the sector and is an upcoming trend for the market. Firms are looking to implement intelligence in AML and are ready to process big data in real-time, if necessary, build predictive modeling to assess the longer-term risk of their customers, and even use machine learning to massively speed up human subject-matter expertise. Regulators are looking to AI and machine-based learning for help with supervision, analytics, reporting, and building money-laundering scenarios that catch crime quickly or prevent it altogether.

MARKET DRIVERS

People are getting more digitally connected, driving the adoption of online transactions. Hence, data control and private fraud have become a serious concern for online retailers.

Also, cyber thefts by hackers and cybercriminals are growing alarmingly, costing companies several billion dollars annually. Payment monitoring solutions often reduce the high-level risk of fraud and data loss. The transaction monitoring market is witnessing the event of innovative technologies that aim to enhance these solutions. Vendors are incorporating AI (AI) in payment monitoring to make services safer and smarter. Managing KYC compliance and CTF activities, the rise in the digitization of payments, and the necessity for mitigating money laundering are the foremost factors driving the market's expansion. Additionally, the surge in the need for identifying high-risk activities by using advanced analytics, the need for organizations to befit stringent regulatory agreements, the increase in the need for knowledge protection regulations, and the lack of high-cost security solutions within the payment network infrastructure fuels the expansion of the market.

The integration of the most recent technology, such as Artificial Intelligence, machine learning, and big data, and an increase in the distribution of transaction monitoring systems by SMEs are anticipated to supply lucrative opportunities for market growth.

A surge in the need to identify high-risk activities by using advanced analytics and the wish for organizations to follow with stringent regulatory agreements fuel the expansion of the market. Integration of advanced technology like artificial Intelligence, machine learning, and large data and surge within the deployment of transaction monitoring systems by SMEs are expected to supply lucrative opportunities for the market. The transaction monitoring market trends include increased digitization of payments and the need to mitigate money laundering, manage KYC compliance, and conduct CTF activities that drive market expansion. The main factors driving the adoption of transaction monitoring business include the adoption of this software by various banks as well as financial institutions for managing differing types of risk like concealment, terrorist financing, risk compliance of bank’s operations, exchange risk, rate of interest risk, and to watch various suspicious transactions. However, the retail & manufacturing sector is predicted to grow at the highest rate during the forecast period due to the rise in online shopping trends, which has led to the adoption of this software.

MARKET RESTRAINTS

Shortage of transaction monitoring and AML professionals and hitches in managing cross-border and multi-jurisdictional AML compliance hinder the development of the market.

Impact of COVID-19 on the Global Transaction Monitoring Market

Coronavirus is one of the foremost significant global challenges affecting people and the economy since the worldwide financial crisis in 2008. Governments in nearly all continents have introduced various lockdown and social distancing measures to curb the spread of the pandemic. While we comply with the new normal, unfortunately, there'll be those who look to take advantage of gaps and weaknesses in Anti-Money Laundering and counter-terrorism financing systems in Financial Institutions as the focus shifts towards managing risks within the current climate. As new risks emerge, FIs have to remain vigilant to ensure they still effectively mitigate these risks. As criminals look to take advantage of the COVID-19 pandemic, predicate offenses will change, particularly as we see a rise in external fraud, like phishing schemes, fundraising for fake charities, counterfeit medicines, and fraudulent investment opportunities. This causes new risk typologies that must be recognized and mitigated, potentially rendering a FI’s detailed risk assessment and typologies that underpin an efficient Transaction Monitoring solution out of date.

Transaction monitoring is administering, reviewing, and analyzing transactions processed on a data system or a business application. The role of transaction monitoring is to view financial transactions, which includes handling current data and interactions to offer a complete picture of customer activity. This activity includes withdrawals, transfers, and deposits. It's mainly done to gauge the overall performance of the transaction processing system. Transaction monitoring software helps banks and other financial organizations observe customer transactions in real-time to analyze different risks. It also measures the reaction time performance of every component because of the links between any of the components.

REPORT COVERAGE

REGIONAL ANALYSIS

North America dominated the global transaction monitoring market with USD 2.63 billion in 2017, but the Asia Pacific region is growing rapidly.  North America is a leading region due to the growing need to manage KYC compliance and mitigate money laundering and Counter-Terrorist Financing (CTF) activities. The use of advanced analytics to supply proactive risk alerts is a number of the key factors expected to fuel the expansion of the transaction monitoring market in North America. Since the transaction monitoring solution provides proactive security measures for preventing data breaches, the Asia Pacific is the fastest-rising region. SMEsand large organizations in the APAC region became more conscious of the transaction monitoring process and its benefits. They began adopting them to secure from suspicious transactions and money laundering activities.

KEY PARTICIPANTS IN THE GLOBAL TRANSACTION MONITORING MARKET

The major companies operating in the global transaction monitoring market include ComplyAdvantage, Infrasoft Technologies (India), ACTICO (Germany), NICE (Israel), Oracle (US), FICO (US), BAE Systems (UK), Fiserv (US), SAS (US), Experian (Ireland), FIS (US), ACI Worldwide, EastNets (UAE), Bottomline (US), Beam Solutions (US), IdentityMind (US), and CaseWare (Canada).

DETAILED SEGMENTATION OF THE GLOBAL TRANSACTION MONITORING MARKET INCLUDED IN THIS REPORT

This research report on the global transaction monitoring market has been segmented and sub-segmented based on the components, application areas, functions, organization size, and region.

By Components

• Solution

• Services

• Professional Services

• Managed Services

By Application Areas

• Anti-Money Laundering

• Customer Identity Management

• Fraud Detection and Prevention

• Compliance Management

By Functions

• Case Management

• KYC/Customer Onboarding

• Dashboard and Reporting

• Watch List Screening

• Based on Deployment Modes:

• On-premises

• Cloud

By Organization Size

• Small and Medium-sized Enterprises (SMEs)

• Large enterprises

By Region
         

• North America

• The United States

• Canada

• Rest of North America

• Europe

  • The United Kingdom

  • Spain

  • Germany

  • Italy

  • France

  • Rest of Europe

• The Asia Pacific

  • India

  • Japan

  • China

  • Australia

  • Singapore

  • Malaysia

  • South Korea

  • New Zealand

  • Southeast Asia

• Latin America

  • Brazil

  • Argentina

  • Mexico

  • Rest of LATAM

• The Middle East and Africa

  • Saudi Arabia

  • UAE

  • Lebanon

  • Jordan

  • Cyprus