Transaction Monitoring Market Size (2023 - 2030)

The global transaction monitoring market is expected to reach USD 22.4 billion by 2030 from USD 11.4 billion in 2022. The market is expected to grow with a CAGR of 17.4% during 2023 - 2030.

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

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 2022. For example, the Danske Bank (Denmark) offense exhibited the threatening level of suspects that developed unhampered through the European banks.

In February 2022, 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 2022, 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, 2022, 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. 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