BASINGSTOKE, U.K.–Global software spend on financial crime prevention tools will exceed $28.7 billion by 2027, increasing from $22.1 billion in 2023, according to a new Juniper Research study.
The study predicts the growth of 30% will be driven by cybercriminals’ strategies of targeting the ever-growing transaction volume of payments over digital channels to maximize financial gain.
Financial crime prevention software enables financial institutions and merchants to automate fraud detection monitoring, KYC (Know Your Customer) and KYB (Know Your Business) procedures, and behavioral analytics to mitigate risk of financial crime, Juniper noted.
FICO Tops Leaderboard
According to Juniper, the research assessed leading financial crime prevention software platforms and evaluated them on a number of criteria, including depth and breadth of offerings, service innovation and future prospects; providing an extensive analysis of the competitive landscape in this dynamic market.
The Competitor Leaderboard ranked the three leading vendors as follows FICO, LexisNexis Risk Solution and Verafin, in that order.
“FICO demonstrates a broad set of capabilities, access to high-value data for crime mitigation and impressive AI-based analytical systems within its product portfolio,” said Research co-author Mélissa Amouny. “Competing vendors must prioritize frequent platform updates to keep pace with rapid cybercriminal innovations and maximize their market share.”
Leading The Software Spend
Juniper said its research is forecasting that by 2027, fraud detection and KYC systems will account for 88% of global financial crime prevention spend; enabling financial institutions to improve the mitigation of many common crime types, including account takeovers.
“However, as digital payments increase in popularity and omnichannel experiences become commonplace, providing comprehensive financial crime prevention packages is becoming more complex, given the number of payment platforms and processes involved,” the company said.
In response, the report urges financial crime prevention tool vendors to use AI for intelligent verification system orchestration, enabling enterprises to adapt to increasingly complex cyberattacks, choosing the right verification capability for each scenario.
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