Global spending on financial crime prevention tools is anticipated to jump 30 per cent in the next four years as cybercriminals target massive growth in digital payment transaction volumes.
According to the latest figures by digital tech consultancy Juniper Research, financial crime software spending, including by both financial services organisations and merchants, is set to exceed $28.7 billion by 2027, up from $22.1 billion today.
Financial crime prevention software includes a combination of front-end monitoring and back-end data analysis tools to help detect, combat and prevent fraud, theft and money laundering.
These may include KYC (Know Your Customer), KYB (Know Your Business) and behavioural biometrics tools, as well as transaction screening and fraud detection software to help mitigate the risk of financial crime.
According to Juniper, fraud detection and KYC systems will account for 88 per cent of the global financial crime prevention software spend by 2027, enabling financial institutions, it said, “to improve the mitigation of many common crime types including account takeovers”.
However, the growth in digital payments and embrace of omnichannel experiences will require an ever more complex assortment of comprehensive financial crime prevention packages, “given the number of payment platforms and processes involved”.
“In response”, Juniper said, “financial crime prevention tool vendors must take advantage of AI for intelligent verification system orchestration, enabling enterprises to adapt to increasingly complex cyberattacks, choosing the right verification capability for each scenario.”
Top financial crime prevention tools
Developer FICO took out top spot in Juniper’s ranking of the best financial crime prevention tools, followed by LexisNexis Risk Solutions in second place and Verafin in third.
Research co-author Mélissa Amouny noted that FICO’s financial crime prevention solution “demonstrates a broad set of capabilities, access to high-value data for crime mitigation and impressive AI-based analytical systems within its product portfolio”.
She added: “Competing vendors must prioritise frequent platform updates to keep pace with rapid cybercriminal innovations and maximise their market share.”
Juniper assessed 21 leading financial crime prevention software platforms, evaluating them on the depth and breadth of offerings, service innovation and future prospects, and the competitive landscape of the market.