Boston, June 14, 2011 – A new report from Aite Group examines financial institutions’ views on the anti-money laundering (AML) marketplace, including their rankings of critical AML solution features and functionalities, and progress toward integration of AML and fraud prevention. Based on two Aite Group studies of executives at banks around the world, completed in the first half of 2011, the report provides insight into spending trends in the space and bank satisfaction levels with AML and fraud solutions.
Due in part to a growing regulatory environment, nearly half of surveyed business executives expect spending on AML to increase for both staff and technology over the next couple of years. Some financial institutions have to varying degrees been experimenting with integrating their fraud prevention and AML functions into cohesive financial crimes units. While this concept makes sense on the surface, institutions that have attempted this integration cite a number of challenges, including organizational and cultural barriers. Fraud prevention, therefore, ranks low on the list of features sought in an AML solution—well below the desire for robust analytics and rule sets, tuning flexibility, and case management.
“While there is no clear-cut answer regarding whether AML and fraud-prevention functions will increasingly merge over time, integration efforts that focus on sharing data between these groups appear to have the most momentum,” says Julie Conroy McNelley, senior analyst with Aite Group and co-author of this report. “To that end, vendors of enterprise risk management solutions should ensure that their solution has the flexibility to facilitate this sharing on an entitlements basis and reflects the unique needs and approach of financial institutions seeking to meld fraud prevention and AML.”
Vendors mentioned include 3i-Infotech, Accuity, ACI Worldwide, Banker’s Toolbox, EastNets, Experian, FIS, Fircosoft, Fiserv, Global Vision, Jack Henry, LexisNexis, Logica, Memento, NICE Actimize, Norkom Technologies (now Detica NetReveal®), Oracle, SAS Institute, Safe Banking Systems, SunGard, Tata Consultancy Services, Temenos, Verafin, and Wolters Kluwer.
This 18-page Impact Note contains 11 figures and one table. This report is available to clients of Aite Group's Fraud & AML service.