The Europe anti-money laundering solution market is expected to grow from US$ 435.15 million in 2019 to US$ 1,713.02 million by 2027; it is estimated to grow at a CAGR of 16.3 % from 2020 to 2027.
Growing focus on limiting risks related to digital payment methods are accelerating the growth of the Europe anti-money laundering solution market. Several European countries are witnessing high growth in digitalization in the banking sector. Government initiatives for digitalization have increased the importance of digital payments among consumers. This factor has resulted in the emergence of several digital payment wallets giving tough competition to the banks. Presently, financial technology enables consumers to make transactions through various platforms, such as laptops and mobile devices. The ability to perform financial transactions on laptops and mobile devices is so unified that consumers take it for granted. In the past years, banks traditionally performed financial assessing of their direct customers and their transactions and payments. With the emergence of digital payments, intermediaries are the link between the bank and the end client, leaving banks vulnerable to customer malfeasance. At present, in Europe, the regulatory focus is centered on limiting money-laundering risks related to digital payment methods, such as e-payments and mobile wallets. Further, the top priority is being given to combat cybercrime and limit potential money-laundering risks. Regulators across Europe are focused on financial crime and cybersecurity risks in digital payments. Thus, the huge focus of financial institutions on limiting the digital payment issues is expected to increase the demand of anti-money laundering solution, which would drive the Europe anti-money laundering solution market during the forecast period.
The COVID-19 outbreak is hindering countries in Europe, especially the UK and Russia. Businesses in the region are facing severe economic difficulties as they are either suspending their operations or reducing activities in a substantial manner. The member states of Europe, such as Italy, Spain, and Germany, are implementing drastic measures and travel restrictions to limit the spread of the novel coronavirus among its citizens. European countries represent a major market for anti-money laundering solutions owing to the adoption of cloud technologies in the BFSI sector. Reporting from Financial Action Task Force (FATF) members indicates that online criminals have attempted to profit from the global pandemic through rising fraudulent activities. MONEYVAL, a permanent monitoring body of the Council of Europe, has identified challenges and policy responses to prevent money laundering. In Europe, the COVID-19 pandemic is negatively impacting government and private sectors’ abilities to execute AML obligations.
Based on deployment type, the on-premises segment led the Europe anti-money laundering solution market in 2019. The on-premises deployments provide a huge benefit to the enterprises by enabling it to preserve all their business processes and current internal systems, such as authentication and access privileges. In addition, enterprises can implement their own data security standards and controls as entire process is housed within their restriction. Moreover, the organizations have the provision to easily leverage existing hardware investments while also providing their employees with a pure cloud-like experience. Advantages of on-premises deployment such as cloud experience, more authentication, and access privileges etc. are expected to increase its demand in coming years, which would drive the Europe anti-money laundering solution market.
The overall Europe 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 Europe 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 Europe anti-money laundering solution market. Accenture; ACI WORLDWIDE, INC.; BAE Systems plc; 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.