The APAC anti-money laundering solution market is expected to grow from US$ 376.59 million in 2019 to US$ 1,681.34 million by 2027; it is estimated to grow at a CAGR of 17.9 % from 2020 to 2027.
Surging focus of FinTech on implementing automated anti-money laundering systems is driving the APAC anti-money laundering solution market. The growth in technological advancements across APAC is increasing the number of cyber criminals. However, FinTech firms have the potential to help banks across the region to stay competitive in the APAC market. Whether tracking digital currency, machine learning (ML), or connecting data, more robust systems combined with advances in technology has opened up possibilities in the fight against money laundering. With increasing consumer adoption and subsequent transaction volumes in competitive FinTech firms in 2019, many firms shifted to automated anti-money laundering practices. The automated anti-money laundering system provides a negligible amount of false positives compared to those generated by traditional data and technology. This reduces the adverse effects of false positives and higher operational costs. Due to the growing connection between FinTech and AML solutions, the Association of Certified Anti-Money Laundering Specialists has announced the launch of a new certification program for FinTech firms who are seeking to meet regulatory standards in a growing APAC market. The association has developed the Certified AML FinTech Compliance Associate program. The program is built to increase the compliance toolkit of FinTech personnel working in financial crime prevention at the entry-level. Thus, increasing focus of FinTech on implementing AML solutions is propelling the APAC anti-money laundering solution market growth.
The COVID-19 outbreak is hindering the countries in APAC, especially China and India. The governments of APAC countries are taking all possible steps to reduce the effects of the COVID-19 pandemic by announcing lockdown. The temporary shutdown of companies resulted in increased digital channels of communication among the customers and organizations. However, during Q1 and Q2 of 2020, several companies were temporarily shut that disrupted the anti-money laundering solution vendors and banks. Thus, the market was slightly negatively impacted. With the release of lockdown, the market again started showing signs of growth. Criminals are taking advantages of the global outbreak to carry out financial fraud, which includes advertising and trafficking in counterfeit products, providing fraudulent investment opportunities. Due to growing threats, businesses in the region are taking necessary steps to identify suspicious behavior, investigate it thoroughly and, where appropriate, report it to the relevant authorities. These activities surge the demand for an anti-money laundering solution. Since the COVID-19 outbreak pandemic, the banks in the region are now focusing on transforming their core operations and are working on AI-based technologies. Further, due to pandemic, vendors are focusing on offering quality self-service capabilities, which are highly customized as per customer’ requirements.
Based on product, the transaction monitoring segment led the APAC anti-money laundering solution market in 2019. The banks and various other financial institutions monitor each transaction performed by their customer on daily basis. The transaction monitoring system helps these organizations perform the transaction monitoring tasks on real time basis. Furthermore, by coalescing the transaction monitoring information with analysis of the historical information and account profile of the customers, the software provides a complete analysis of a customer’s profile, risk levels, and predicted future activity to the financial institutions. The software can also generate reports and create alerts to suspicious activity. The transactions monitored can include cash deposits and withdrawals, wire transfers, and ACH activity. AML transaction monitoring solutions also may include sanctions screening, blacklist screening, and customer profiling features. Advantages of transaction monitoring such as real time transaction, complete analysis of customer, and report generation etc. are expected to increase its demand, which would drive the APAC anti-money laundering solution market in coming years.
The overall APAC anti-money laundering solution market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the APAC anti-money laundering solution market with respect to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, anti-money laundering solution market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the APAC anti-money laundering solution market. Accenture; ACI WORLDWIDE, INC.; BAE Systems plc; EastNets.com; LexisNexis Risk Solutions Group; Nasdaq Inc.; NICE Ltd.; Open Text Corporation; Oracle Corporation; and SAS Institute Inc. are among the players operating in the market.