Mid-market US financial institutions are seeing major returns from merging fraud prevention and AML efforts into a unified approach known as FRAML.
A report from Hawk and Celent sheds light on the financial and operational benefits of this convergence, offering rare insights into the cost savings achieved by banks and credit unions taking this step.
Traditionally, fraud and AML have been handled separately, with distinct teams, processes, and technology stacks. While this siloed approach allowed for specialist expertise in each area, it also resulted in duplicated efforts, slower investigations, and missed opportunities to connect critical data points. Regulatory scrutiny has only intensified the need for unified risk visibility and streamlined reporting across financial crime operations. Converging these functions enables banks to enhance efficiency, speed up investigations, and satisfy growing compliance demands — all while cutting costs.
The financial upside is significant. According to the Hawk-Celent report, half of the banks that have combined their fraud and AML operations have achieved annual cost savings exceeding $5m. Even those in the early stages of integration expect long-term savings of up to $5m over five years, with a further 41% anticipating between $1m and $5m in savings.
However, the benefits extend well beyond the bottom line. Integrating fraud prevention and AML enables better data sharing, faster response times, and improved risk visibility across the entire organisation. For mid-sized banks and credit unions, this shift represents a strategic advantage at a time when agility, cost control, and compliance pressures are more critical than ever.
The report also highlights how emerging technologies such as artificial intelligence can further amplify the impact of convergence, helping institutions detect threats earlier and respond more effectively.
Ultimately, the findings make it clear: FRAML is no longer just a compliance trend. For financial institutions aiming to strengthen defences, boost efficiency, and drive down costs, merging fraud and AML is becoming a strategic necessity.
Read the full post from Hawk here.
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