Global software spend on financial crime prevention tools will exceed $28.7bn by 2027, up from $22.1bn in 2023, Juniper Research claims.
This 30% growth is expected to be spurred on by cybercriminals targeting the growing transaction volume of digital payments.
Financial crime prevention software helps firms combat this by automating fraud detection monitoring, KYC and KYB.
Its research predicts that by 2027, fraud detection and KYC systems will account for 88% of global financial crime prevention spend. This will allow financial institutions to improve the mitigation of common criminal attacks, including account takeovers, Juniper said.
As digital payments continue to gain popularity and omnichannel experiences become commonplace, providing comprehensive financial crime prevention packages will become more complex.
Due to this, Juniper urges financial crime prevention tool vendors to use AI for intelligent verification system orchestration. This will allow enterprises to adapt to complex cyberattacks and choose the best verification capability for each scenario.
As part of its research, Juniper created a competitor leaderboard for financial crime prevention software platforms. It assessed leading platforms and evaluated them based on criteria such as depth and breadth of offerings, service innovation and future prospects.
At the top of its leaderboard is FICO. The company offers decisioning analytics to help optimise consumer interactions across all customer decisions.
Second and third in Juniper’s leaderboard were LexisNexis Risk Solutions and Verafin, respectively.
Research co-author Mélissa Amouny said, “FICO demonstrates a broad set of capabilities, access to high-value data for crime mitigation and impressive AI-based analytical systems within its product portfolio. Competing vendors must prioritise frequent platform updates to keep pace with rapid cybercriminal innovations and maximise their market share.”
These finding comes from Juniper’s new ‘Financial Crime Prevention: Segment Analysis, Key Trends & Market Forecasts 2023-2027’ report. This can be downloaded here.
Another recent findings from Juniper Research was that AI-powered financial fraud detection spending will exceed $10bn by 2027.
On 31st January, FinTech Global is hosting the 3rd annual AML & FinCrime Tech Forum. Join the event to learn about the latest frauds and threats in financial services and how financial institutions are partnering with tech companies to combat them. Find out more here.
Copyright © 2023 FinTech Global