Transaction Monitoring Global Market Report 2024

The transaction monitoring market size has grown rapidly in recent years. It will grow from $14.75 billion in 2023 to $17.14 billion in 2024 at a compound annual growth rate (CAGR) of 16.2%. The growth observed in the historic period can be attributed to several factors, including the increasing utilization of online payment methods, the surge in e-commerce transactions, the convenience and security offered by digital transactions, the rise in the number of banking transactions, and the availability of online banking facilities. Additionally, there has been a growing need for real-time detection of suspicious activities, driving the adoption of transaction monitoring solutions to mitigate financial risks and ensure compliance with regulatory requirements.

The transaction monitoring market size is expected to see rapid growth in the next few years. It will grow to $31.4 billion in 2028 at a compound annual growth rate (CAGR) of 16.5%. The anticipated growth in the forecast period can be attributed to several factors, including the increasing prevalence of digital transactions, the rise of cryptocurrencies and blockchain transactions, the growing sophistication of financial cyber threats, the increase in the deployment of transaction monitoring systems, and the growing demand for online shopping. Major trends expected in this period include the adoption of transaction monitoring systems, the integration of advanced technologies, the advancement in transaction monitoring solutions incorporating AI and ML, the integration of data visualization tools for intuitive transaction analysis, and the adoption of cloud-based transaction monitoring solutions for scalability.

The surge in cryptocurrencies and blockchain transactions is poised to propel substantial growth within the transaction monitoring market. Cryptocurrencies, which are digital or virtual currencies utilizing cryptography for security and operating independently of central authorities, have gained prominence. Blockchain transactions, involving the transfer of cryptocurrency within the blockchain network, are witnessing increased demand due to factors such as decentralization, financial inclusion, security, transparency, and institutional acceptance. Transaction monitoring in cryptocurrencies and blockchain involves tracking and analyzing financial activities to identify and prevent fraud, money laundering, and illicit transactions, thereby ensuring regulatory compliance and bolstering security measures. For instance, as reported by the International Monetary Fund in August 2023, institutional investors' trading volume on crypto exchanges experienced a remarkable surge of over 1700% from approximately $25 billion to over $450 billion between the second quarters of 2020 and 2021. This significant uptick underscores the pivotal role of cryptocurrencies and blockchain transactions in driving the expansion of the transaction monitoring market.

Major companies are leveraging advanced solutions such as software-as-a-service (SaaS) platforms. These platforms enable real-time transaction monitoring, facilitating swift detection and response to anomalies for enhanced security and compliance. For example, Fenergo Ltd., an Ireland-based SaaS company specializing in financial technology solutions, introduced a KYC and transaction compliance solution in June 2023. This solution provides real-time customer intelligence and continuous monitoring capabilities, leveraging identity verification and transaction tracking to identify suspicious behavior such as money laundering and adhere to anti-money laundering regulations. Its smart technology streamlines transaction analysis, consolidates data from various sources, and minimizes false positives.

In April 2022, Fenergo Ltd. further bolstered its position in the transaction monitoring market by acquiring Sentinels, a Netherlands-based AI-powered transaction monitoring company. This strategic acquisition enhances Fenergo's suite of offerings, enabling end-to-end Software as a Service (SaaS)-based client lifecycle management (CLM) with advanced transaction monitoring capabilities, solidifying its standing as a leader in the financial technology sector.

Major companies operating in the transaction monitoring market are International Business Machines Corporation, Oracle Corporation, BAE Systems PLC, Fiserv Inc., Fidelity National Information Services Inc., Thomson Reuters Corporation, Refinitiv Limited, Experian Information Solutions Inc., SAS Institute Inc., NICE Systems Ltd., ACI Worldwide Inc., Fair Isaac Corporation, Protiviti Inc., Software AG, CaseWare International Inc., EastNets, Jumio Corporation, Bottomline Technologies Inc., Acuant Inc., ACTICO GmbH, ComplyAdvantage Ltd., Infrasoft Technologies Limited, Beam Solutions Inc., ComplianceWise B.V., Complyadvantage.

North America was the largest region in the transaction monitoring market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the transaction monitoring market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the transaction monitoring market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Transaction monitoring refers to the systematic observation and analysis of financial transactions to identify and flag any suspicious activities that may indicate potential money laundering, fraud, or other illicit behaviors within a system or organization. This process involves the continuous monitoring of transactions in real-time or retrospectively, leveraging various techniques and algorithms to detect anomalies or patterns indicative of fraudulent behavior. Transaction monitoring is essential for organizations to comply with regulatory requirements, mitigate financial risks, and safeguard their reputation and assets.

The primary components of transaction monitoring encompass both solutions and services. Transaction monitoring solutions are software tools designed to aid organizations in the detection and prevention of fraudulent activities within financial transactions. These solutions can be deployed either on-premises or in the cloud, catering to organizations of varying sizes, including small and medium-sized enterprises (SMEs) and large corporations. They serve multiple applications, including anti-money laundering, customer identity management, fraud detection and prevention, and compliance management, across diverse industries such as banking, financial services, and insurance, government and defense, information technology (IT) and telecommunications, retail, healthcare, energy and utilities, manufacturing, among others. Additionally, transaction monitoring services complement these solutions by providing expert assistance in the setup, configuration, and ongoing management of transaction monitoring processes, ensuring optimal performance and adherence to regulatory standards.

The transaction monitoring market research report is one of a series of new reports that provides transaction monitoring market statistics, including transaction monitoring industry global market size, regional shares, competitors with a transaction monitoring market share, detailed transaction monitoring market segments, market trends and opportunities, and any further data you may need to thrive in the transaction monitoring industry. This transaction monitoring market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The transaction monitoring market includes revenues earned by entities by real-time monitoring, alert generation, rule-based monitoring, and pattern recognition. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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