Juniper Research estimates that global spending on financial crime prevention software tools will rise from $22.1 billion in 2023 to over $28.7 billion by 2027
Image: pexels.com
A new study from Juniper Research has found that global software spend on financial crime prevention tools will exceed $28.7 billion by 2027, growing by 30% compared to 2023.
Financial crime prevention software automates fraud detection monitoring, KYC (Know Your Customer) and KYB (Know Your Business) procedures, and uses behavioural analytics to mitigate the risk.
The research assessed leading financial crime prevention platforms and ranked them as follows:
- FICO
- LexisNexis Risk Solutions
- Verafin
The study took into account multiple criteria, including depth and breadth of offerings, service innovation and future prospects.
Additionally, the study predicted that by 2027, fraud detection and KYC systems will account for 88% of global financial crime prevention spending. While cybercriminals will target payments over digital channels to maximise financial gain, financial institutions will use prevention tools to protect customers from common crime types, including account takeovers.
Nevertheless, as omnichannel experiences become commonplace, providing comprehensive financial crime prevention packages would expectedly become more complex, since more payment platforms and processes would be involved.
Therefore, the report urges financial crime prevention tool vendors to use AI for intelligent verification system orchestration. Improving the verification process would enable enterprises to adapt to increasingly complex cyberattacks, choosing the right capability for each scenario.
