Transaction Monitoring Market Research Report - Size, Share, Trends, COVID-19 Impact and Growth Analysis - Industry Forecast (2021 to 2026)

  • Category : Information Technology |
  • Report Code : VMR-41165 |
  • Pages: 200 |
  • Published : 2021-12 |
  • Region: Global |
  • Avilable Format : format excel,ppt, Pdf |
  • Share:

Transaction Monitoring Market Size (2021-2026)

 

The global transaction monitoring market is expected to reach USD 22.4 billion by 2026 from USD 11.4 billion in 2020. The market is expected to grow with a CAGR of 17.4% during 2021 to 2026.

 

Monitoring of transactions carried out between business and customer. The transaction monitoring includes presenting customer information, assessment of the historical, and interactions that provide the full picture of customer activity.

 

It is the process of reviewing, administering, and analyzing the transaction processed on a business application or information system. Maintaining the banking relationship, protecting customer business, and identifying high-risk activities are primary goals of transaction monitoring.

 

COVID-19 Impact on Transaction Monitoring Market

 

The recent outbreak of novel coronavirus (COVID-19) pandemic has created various challenges for the authorities in charge of financing terrorism and money laundering. During the pandemic period, transaction monitoring is used for various sectors to secure money laundering and suspicious transaction activities.

 

The hammering of the COVID-19 pandemic supports the market growth as the financial fraud cases increase to rise with growing fraud transactions for the COVID-19 donation.

 

MARKET DRIVERS

 

Factors like the demand for justifying money laundering, managing KYC compliance, and CTF activities, and also increasing payment digitizations escalate the transaction monitoring market growth. Deploying advanced analytics for identifying high-risk activities and increasing the need for organizations to meet the strict regulatory agreements flourish the market growth during the forecast period.

 

MARKET RESTRAINTS

 

However, the dearth of transaction monitoring and anti-money laundering professionals, and complications in managing cross-border and multi-jurisdictional AML-compliance obstruct the market growth.

 

TRANSACTION MONITORING MARKET REPORT COVERAGE

 

REPORT METRIC

DETAILS

Market Size Available

2020 – 2026

Base Year

2020

Forecast Period

2021 – 2026

CAGR

17.4%

Segments Covered

By Component, Application, Functions, Deployment Mode, Organization Size, and Region

Revenue Forecast by 2026

USD 22.4 Billion

Regions Covered

North America, Europe, APAC, RoW

Market Leaders Profiled

NICE (Israel), Oracle (US), FICO (US), BAE Systems (UK), Fiserv (US), SAS (US), Experian (Ireland), FIS (US), ACI Worldwide (US),  Refinitiv (UK), and Others

Market Segmentation

 

The global transaction monitoring market has been segmented and sub-segmented based on the following categories:

 

Transaction Monitoring Market - By Component

 

  • Solution
  • Services
  • Professional Services
    • Consulting
    • Integration
    • Training and education
    • Support and maintenance
  • Managed Services

 

By component, the solutions segment is leading the transaction monitoring market. The segment contributed about 75% of the share in the transaction monitoring market in 2018. Several banks and other financial institutions are increasingly adopting transaction monitoring software. The governments have initiated some regulations to secure the data accelerate the solutions segment growth.

 

 

The services segment is expected to grow with the quickest CAGR pace and due to the brisk rise in the adoption of varied services across different organizations. These factors fuel the transaction monitoring market growth.

 

Transaction Monitoring Market - By Application Areas

 

  • Anti-Money Laundering
  • Customer Identity Management
  • Fraud Detection and Prevention
  • Compliance Management

 

The anti-money laundering application areas segment is likely to drive the transaction monitoring market forward.

 

Transaction Monitoring Market - By Functions

 

  • Case Management
  • KYC/Customer Onboarding
  • Dashboard and Reporting
  • Watch List Screening

 

By functions, the KYC/ Customer Onboarding segment is projected to lead the transaction monitoring market.

 

Transaction Monitoring Market - By Deployment Modes

 

  • On-premises
  • Cloud

 

The on-premise deployment modes segment is likely to lead the transaction monitoring market. The segment constitutes about 70% of the share globally. By the end of the mentioned timeframe, the segment continues its dominance. Based on the better-quality security features granted by the on-premise model, accentuates the market growth throughout the forecast period.

 

Transaction Monitoring Market - By Organization Size

 

  • Small and Medium-sized Enterprises (SMEs)
  • Large enterprises

 

By organization size, the large enterprise segment accounts for the highest share in the transaction monitoring market.

 

Regional Analysis

 

Geographically, North America is dominating the transaction monitoring market across the mentioned period.

 

The U.S is the largest market with the highest share in transaction monitoring. The market growth in the U.S is because of the high increase in adopting digital technologies, and the existence of transaction monitoring software and service providers is strong.

 

Transaction monitoring providers in the U.S and Canada primarily focus on offering cost-effective cloud-based solutions throughout the region.

 

Europe is the second-largest region and holds a considerable share in the transaction monitoring market. The region has observed many money laundering crimes in 2019. For example, the Danske Bank (Denmark) offense exhibited the threatening level of suspects that developed unhampered through the European banks.

 

In February 2020, a U.K-based crypto asset risk management solution provider, Elliptic, received USD 5million investment from Wells Fargo Strategic Capital. The company has joined the Series B funding round bringing the total amount that raised to a 28million USD.

 

However, the Asia-Pacific region is accounted to grow with the highest CAGR value and is the quickest growing region globally. The market growth in the region owes to growing corruption, increasing financial frauds, and money laundering. The governments across the region have prepared their efforts to combat financial fraud and advance anti-money laundering via legislation. For example, the banks of Thailand are monitored by the central bank of Thailand.

 

Vietnam, a country in Asia, fighting money laundering is one of the top priorities for the State Bank of Vietnam. For example, in October 2019, BOT disclosed its step forward with a test of biometric KYC technology.

 

New Zealand maintains a hard anti-money laundering system to save against money laundering and terrorist financing.

 

Due to the shortage of regulation and corruption among the institutions, Indonesia has faced money laundering.

 

Latin America is the second quickest growing region after Asia-Pacific to have a quick CAGR growth.

 

On July 21, 2021, in Mexico, Fiserv Inc. unveiled the combination of a cutting-edge fraud prevention solution into its e-commerce payment gateway to diminish the fraud-related chargeback risk for Mexico's online commerce.

 

The Middle East and Africa are anticipated to have sluggish growth in the transaction monitoring market.

 

Top key players in the Transaction Monitoring Market

 

Some of the major vendors participating in the global transaction monitoring market include:

 

  1. NICE (Israel)
  2. Oracle (US)
  3. FICO (US)
  4. BAE Systems (UK)
  5. Fiserv (US)
  6. SAS (US)
  7. Experian (Ireland)
  8. FIS (US)
  9. ACI Worldwide (US)
  10. Refinitiv (UK)
  11. Software AG (Germany)
  12. ComplyAdvantage (US)
  13. Infrasoft Technologies (India)
  14. ACTICO (Germany)
  15. ComplianceWise (Netherlands)
  16. EastNets (UAE)
  17. Bottomline (US)
  18. Beam Solutions (US)
  19. IdentityMind (US)
  20. CaseWare (Canada)

 

Recent Market Developments

 

  • On February 11, 2021, NICE Actimize introduced WL-X, a breakthrough AI-powered, next-generation Watch List (WL) screening solution using the power of artificial intelligence for superior data management.

 

  • On October 04, 2021, Oracle upgrades responsible use of Artificial Intelligence (AI) in financial institutions.

 

  • On November 15, 2021, BAE Systems Applied Intelligence unveiled its agreement with Nova KBM Slovenia supplying its NetReveal Compliance Suite in a five-year deal. The deal fuels the significant developments at the bank.

 

  • On July 27, 2021, BAE Systems and Kharon partnered giving the customers chance to take advantage of Kharon's expert data and analytics.

Chapter 1. Transaction Monitoring Market  – Scope & Methodology

1.1. Market Segmentation

1.2. Assumptions

1.3. Research Methodology

1.4. Primary Sources

1.5. Secondary Sources

Chapter 2. Transaction Monitoring Market   – Executive Summary

2.1. Market Size & Forecast – (2021 – 2026) ($M/$Bn)

2.2. Key Trends & Insights

2.3. COVID-19 Impact Analysis

                2.3.1. Impact during 2021 - 2026

                2.3.2. Impact on Supply – Demand

                2.3.3. Impact on Production Cost

                2.3.4. Impact on Supply Chain

Chapter 3. Transaction Monitoring Market   – Competition Scenario

3.1. Market Share Analysis

3.2. Product Benchmarking

3.3. Competitive Strategy & Development Scenario

3.4. Competitive Pricing Analysis

3.5. Supplier - Distributor Analysis

Chapter 4. Transaction Monitoring Market   Entry Scenario

4.1. Case Studies – Start-up/Thriving Companies

4.2. Regulatory Scenario - By Region

4.3  Customer Analysis

4.4. Porters Five Force Model

                4.4.1. Bargaining Power of Suppliers

                4.4.2. Bargaining Powers of Customers

                4.4.3. Threat of New Entrants

                4.4.4. Rivalry among Existing Players

                4.4.5. Threat of Substitutes

Chapter 5. Transaction Monitoring Market –  Landscape

5.1. Value Chain Analysis – Key Stakeholders Impact Analysis

5.2. Market Drivers

5.3. Market Restraints/Challenges

5.4. Market Opportunities

Chapter 6. Transaction Monitoring Market – By Component

6.1. Solution

6.2. Services

6.3. Professional Services

      6.3.1. Consulting

      6.3.2. Integration

      6.3.3. Training and Education

      6.4.4. Support and Maintenance

6.4. Managed Services 

Chapter 7. Transaction Monitoring Market – By Application

7.1. Anti-Money Laundering

7.2. Customer Identity Management

7.3. Fraud Detection and Prevention

7.4. Compliance Management

Chapter 8. Transaction Monitoring Market – By Functions

8.1. Case Management

8.2. KYC/Customer Onboarding 

8.3. Dashboard and Reporting

8.4. Watch List Screening

Chapter 9. Transaction Monitoring Market – By Deployment Modes

9.1. On-Premises

9.2. Cloud

Chapter 10. Transaction Monitoring Market – By Organization Size

10.1. Small and Medium Sized Enterprises (SMEs)

10.2. Large Enterprises

Chapter 11. Transaction Monitoring Market  , By Geography – Market Size, Forecast, Trends & Insights

11.1. North America

                11.1.1. U.S.A

                11.1.2. Canada

                11.1.3. Mexico

11.2. Europe

                11.2.1. Italy

                11.2.2. Spain

                11.2.3. Russia

                11.2.4. Germany

                11.2.5. UK             

                11.2.6. France

                11.2.7. Rest of Europe

11.3. Asia Pacific

                11.3.1. Japan

                11.3.2. South Korea

                11.3.3. China

                11.3.4. India

                11.3.5. Australia & New Zealand

                11.3.6. Rest of Asia-Pacific

11.4. Rest of the World

                11.4.1. Middle East

                11.4.2. Africa

                11.4.3. South America

                                11.4.3.1 Brazil

Chapter 12. Transaction Monitoring Market   – Company Profiles – (Overview, Product Portfolio, Financials, Developments)

12.1. Company 1

12.2. Company 2

12.3. Company 3

12.4. Company 4

12.5. Company 5

12.6. Company 6

12.7. Company 7

12.8. Company 8

12.9. Company 9

12.10. Company 10

  • Primary & Secondary Sources to Collect & Validate Data

  • Utilization of Both Top Down & Bottom Up Approach

  • Holistic Research Methodology


Scope & Introductory Research

In the initial stage of research, the scope for market is defined. In order to better understanding of the market, secondary focus is on different segmentations of the market. Preliminary research involves identifying key data points related to the market under consideration to estimate the market sizes to the best extent.​

Data Collection 

Based on the scope of the market and the key data points, a number of secondary sources are considered. This data collection stage consists of a team of analysts who gather data from various secondary resources, accessing proprietary databases and primary research by reaching out to key market participants and opinion leaders. ​

Data Fusion

At this stage, collected data using several sources is arranged in structured format. The sources include industry participants, in-house models, key opinion leaders in the market ecosystem and databases. Historical data trends are established at this point, and compared to the current scenario. Based on the macro- and micro-factor prevailing in various geographies, proprietary data models are used to analyze key market countries. Key players in this market are listed based on their capabilities in revenue, sales, and development. The study also involves the identification of companies in the category of 'new entrants' and their potential effects on the market.

Data Analysis

At this stage, the analyst team moves on to understand how the market has changed over the years. The total size of the market is gathered after an study of different business segments and end-users is done. An impact research is also done to see what factors will/may influence the market in the years ahead. The effect of various variables on the industry is often taken into account when forecasting market sizes.

Verification ​

Data verification is conducted at all research levels, however this stage is dedicated to more rigorous checking of the data points. At this stage, the estimated data is triangulated with company revenues and checked with industry experts including several senior executives and key opinion leaders in the market. The data is then summarized, and the findings are derived from the same for the report. ​

Quality Assurance & Report Preparation​

Holistic research methodology is followed with combination of Top Down and Bottom Up approach to undertake the estimation and forecasting task in order to ensure quality of data. At this stage of the research process, a dedicated QA team checks the data and approves after several predefined checks. Each section is checked and questioned to make the report accurate and reliable. In case of discrepancy, a team of analysts reviews the issue, and the whole process is repeated again. That significantly improves the report's quality. After approval, all the parts of the report are brought together and is formatted by highly trained team thus making it ready to dispatch.​

virtuemarketresearch download sample

The field with (*) is required.

Ask A Question

Our Team Will Assist You in What You Are Looking For


+1 334-472-2091
[email protected]

Share: