Transaction monitoring is the process of administering, reviewing, and analyzing the transaction processed on an information system or on a business application. It is the checking of customer transactions, including assessing historical/ current customer information and interactions to provide a complete picture of customer activity. The primary purpose of the monitoring of transactions is to detect high-risk operations, secure client company, and preserve the banking relationship.
This industry is expected to be dominated by many developments over the next eight years. A big factor pushing the industry is handling KYC compliance and alleviating money laundering and CTF practices. Furthermore, the adoption of progressive analytics to include constructive risk warnings and the obligation of companies to comply with stringent regulatory enforcement also influences the market.
As a result of the increasing adoption in BFSI, Government & Defense, IT & Telecom, Retail, Healthcare, Energy & Utilities, Manufacturing, and others, the demand for global transaction monitoring market is substantially gaining. The banking, financial services, and insurance segment is dominating the segment with the highest share owing to the increasing threat to monetary transactions.
However, lack of transaction monitoring and AML professionals and difficulties in managing cross-border and multi-jurisdictional AML-compliance is expected to hamper the growth of the market. Furthermore, integration of advance technology such as AI, machine learning and big data, rising digitalization in payment, and increase in the deployment of transaction monitoring system by SMEs are anticipated to provide lucrative opportunity for the market.
The global transaction monitoring is segmented on the basis of component, end-user, and applications. In terms of component, the content services platform market is bifurcated into solutions, and services. The services segment is further segmented into professional and managed services. The professional services are further segmented into consulting, integration, training and education, support, and maintenance. In terms of deployment type, the transaction monitoring industry is bifurcated into on-premises, and cloud. The cloud deployment mode is expected to grow at a higher CAGR. This is attributed as the SMEs are rapidly adopting the cost-effective solutions. On the basis of enterprise size type, the market is fragmented into small and medium enterprises (SMEs), and large enterprises. Based on the function, the market is segmented into case management, KYC/customer onboarding, dash-board and reporting, watch list screening. KYC/Customer onboarding is dominating the market owing to the need to manage KYC compliance. Based on the application, the market is segmented into anti-money laundering (AML), customer identity management, fraud detection and prevention (FDP) and compliance management
The global market for global transaction monitoring has intense competition among well developed and new emerging players. Through investing in alliances, mergers, and acquisitions and expanding their markets, these industry leaders seek to achieve a strategic edge over the other participants.
Geographically, the global transaction monitoring industry is a wide range to North America, Asia Pacific, South America, Europe, and the Middle East & Africa. North America is expected to have the largest market size in the transaction monitoring market, owing to the increasing need to monitor KYC regulation, and mitigate money laundering and Counter-Terrorist Financing (CTF) activities; and use of predictive analytics to provide proactive risk warnings. The market of North America is followed by Europe. The APAC market is also expected to grow substantially over the forecast period as a result of increasing awareness amongst SMEs to provide security measures for preventing data breaches.
The major players of the global transaction monitoring market are NICE, Oracle, FICO, BAE Systems, Fiserv, SAS, Experian, FIS, ACI Worldwide, Refinitiv, Software AG, ComplyAdvantage, Infrasoft Technologies. These vendors have adopted various types of organic and inorganic growth strategies, such as new product launches, partnerships and collaborations, to expand their offerings in the transaction monitoring market
Segment Overview of Global Transaction Monitoring Market
Component Overview, 2018-2028 (USD Billion)
Deployment Overview, 2018-2028 (USD Billion)
Organization Size Overview, 2018-2028 (USD Billion)
- Large Enterprises
- Small & Medium Enterprises
Functions Overview, 2018-2028 (USD Billion)
- Case Management
- KYC/Customer Onboarding
- Dashboard and Reporting
- Watch List Screening
Application Overview, 2018-2028 (USD Billion)
- Anti-Money Laundering (AML)
- Customer Identity Management
- Fraud Detection and Prevention (FDP)
- Compliance Management
Regional Overview, 2018-2028 (USD Billion)
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia-Pacific
- Middle East and Africa
- South Africa
- Rest of Middle East and Africa
- South America
- Rest of South America