Published by Wanda Rich
Posted on March 26, 2025
Strict Regulations Governing KYC and Anti-Money Laundering Worldwide Spurring Adoption of Transaction Monitoring Solutions: Fact.MR Report
The global transaction monitoring market is projected to reach a value of US$ 43.2 billion by the end of 2034, up from US$ 17.59 billion in 2024, according to an updated Fact.MR industry analysis. Market growth is being driven by the rising use of transaction monitoring in compliance with increasingly stringent anti-money laundering (AML) and know-your-customer (KYC) laws and regulations in several countries.
The law mandates that financial institutions establish reliable systems for detecting and reporting suspicious activities, verifying customer identities, and maintaining detailed records of every transaction. Consequently, financial service providers such as banks and credit unions are compelled to invest in advanced transaction monitoring systems to comply with regulations, avoid legal issues, and retain their operational licenses. This regulatory pressure is driving the demand for sophisticated, automated monitoring systems capable of processing high transaction volumes and adapting to evolving compliance requirements.
Receive a Tailored Analysis for Specific Research Solutions: https://www.factmr.com/connectus/sample?flag=S&rep_id=6167
Key Takeaways from the Market Study:
“The market is benefitting from the use of advanced technologies such as big data analytics, artificial intelligence, and machine learning as well as from small- and medium-scale enterprises deploying more transaction monitoring systems,” says a Fact.MR analyst.
Rapidly Increasing Demand for Transaction Monitoring from SMEs
Small- & medium-sized enterprises (SMEs) are more vulnerable to financial robbers and have less advanced security than larger corporations, therefore transaction monitoring is becoming more important for them. This weakness makes them attractive targets for fraud, money laundering, and other financial crimes.
SMEs that grow and engage in more complex financial activities, such the global trade, are subject to stricter regulatory oversight and compliance obligations. In various countries, smaller businesses are now subject to AML and CTF regulations, necessitating the use of suitable monitoring systems.
Transaction Monitoring Industry News:
Key players in the transaction monitoring industry are prioritizing fraud detection enhancements and improved analytics capabilities. Many Fintech companies are entering the market with advanced cloud-based solutions to strengthen transaction monitoring. In June 2024, Bahwan Cybertek's 'rt360 Real Time Monitoring System' was approved for testing by the RBI, enabling real-time or near-real-time transaction tracking for banks. This system also analyzes transactions and generates notifications for proactive follow-ups. In April 2024, Oracle Financial Services launched the Compliance Agent, an AI-powered cloud service that allows banks to conduct low-cost, scenario-based testing to fine-tune thresholds, detect suspicious activities, and meet regulatory compliance standards.
In November 2023, Cable introduced Transaction Assurance, an all-in-one effectiveness testing platform, setting new standards for financial crime compliance and transaction testing. A month earlier, in October 2023, WorkFusion launched the AI Transaction Monitoring Investigator, an AI-powered tool designed to automate the review of first-level (L1) transaction monitoring alarms, improving efficiency and accuracy in fraud detection.
Leading Players Driving Innovation in the Transaction Monitoring Market:
Key industry participants like Oracle Corporation, Fiserv, FICO; NICE; BAE Systems, Software AG, FIS; SAS, Experian Plc; WorkFusion, Cable, Bahwan, etc., are driving the transaction monitoring industry.
Get Customization on this Report for Specific Research Solutions:
https://www.factmr.com/connectus/sample?flag=S&rep_id=6167
More Valuable Insightson Offer:
Fact.MR, in its new offering, presents an unbiased analysis of the transaction monitoring market, presenting historical demand data (2019 to 2023) and forecast statistics for 2024 to 2034.
The study divulges essential insights into the market based on solution (software, services), application area (anti-money laundering, customer identity management, fraud detection & prevention, compliance management), function (case management, KYC/customer onboarding, dashboard & reporting, watch list screening), deployment (on-premise, cloud), organizational size (large enterprises, small- & medium-sized enterprises), and vertical (banking, financial services, & insurance, government & defense, IT & telecom, retail, healthcare, energy & utilities, manufacturing), across seven major regions of the world (North America, Western Europe, Eastern Europe, East Asia, Latin America, South Asia & Pacific, and MEA).
Check out More Related Studies Published by Fact.MR Research:
Digital transaction management market revenue was estimated to be US$ 8.01 billion in 2021 and is expected to increase at a CAGR of 25% from 2022 to 2032. It is estimated that the market will reach US$ 93.25 billion by the end of 2032.
AI-based anti-money laundering (AML) solutions market stands at a valuation of US$ 1.94 billion in 2023. Sales of AI-based anti-money laundering solutions are forecasted to increase at a robust CAGR of 15.9% and reach US$ 8.49 billion by the end of 2033.
Financial analytics market is expected to reach US$ 12.19 billion in 2024. Latest projections are that the market will increase at a CAGR of 8.8% to ascend to a value of US$ 28.34 billion by 2034.
Network performance monitoring market is estimated to be worth US$ 1,625.5 million in 2024 and is forecast to reach a value of US$ 5,632.1 million by 2034, with a projected CAGR of 13.2% from 2024 to 2034.
IT infrastructure monitoring market size is estimated at US$ 4.4 billion in 2024. The industry is predicted to increase rapidly at a CAGR of 17.3% and reach US$ 21.72 billion by 2034.
Explore more articles in the Research Reports category
