Two-thirds of financial institutions save $1 million annually by consolidating AML and fraud systems

As financial crime costs soar, collaboration between AML and fraud teams is proving effective. With 80% of teams working together and AI integration, institutions are achieving significant savings and enhancing compliance efforts.

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Sources: Finextra ResearchFst
Two-thirds of financial institutions that have consolidated their anti-money laundering (AML) and fraud systems report annual savings of at least $1 million, according to a recent survey. This trend reflects a growing collaboration between fraud and AML teams, with 80% of institutions indicating they now work together.

Furthermore, 53% of these institutions share part or all of their systems, enhancing efficiency and reducing operational costs. The survey highlights the increasing reliance on artificial intelligence (AI), with 100% of respondents incorporating AI into their processes to combat financial crime.

Despite these advancements, challenges remain. The survey identified analyst staffing and high rates of false positive alerts as significant hurdles. As financial crime evolves, organizations face escalating costs, with global fraud losses projected to exceed $485 billion. Compliance teams are under pressure to mitigate risks while navigating regulatory demands with limited resources.

The findings underscore the importance of integrating technology and collaboration in the fight against financial crime, as institutions strive to enhance their operational models and compliance processes.
Sources: Finextra Research
A recent survey reveals that two-thirds of financial institutions that consolidate their anti-money laundering (AML) and fraud systems save at least $1 million annually. Additionally, 80% of these institutions report collaboration between their fraud and AML teams, with 53% sharing systems and utilizing AI technologies.
Section 1 background
The Headline

Collaboration and Savings in Financial Institutions

Two-thirds of respondents that have already done so claim that consolidating their AML and fraud systems has saved them at least $1 million annually.
Survey Respondents
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Key Facts
  • 80% of financial institutions' AML and fraud teams are now collaborating, indicating a significant shift towards integrated operations.Finextra Research1
  • 53% of institutions share part or all of the systems used by their AML and financial crime departments.Finextra Research1
  • 100% of surveyed financial institutions utilize AI for various applications in fraud and compliance.Finextra Research1
  • Two-thirds of respondents report saving at least $1 million annually by consolidating their AML and fraud systems.Finextra Research1
Key Stats at a Glance
Percentage of AML and fraud teams collaborating
80%
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Percentage of institutions sharing systems
53%
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Annual savings from consolidation
$1 million
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Section 2 background
Background Context

Financial Crime Costs and Compliance Challenges

Key Facts
  • The cost of financial crime is skyrocketing, with global losses from fraud projected to exceed $485 billion.Fst
  • Compliance teams face increasing pressure to reduce risk exposure and meet evolving regulatory requirements.
  • Financial services organisations are achieving compliance transformation and reducing operating costs by up to 40%.Fst
Key Stats at a Glance
Projected global losses from fraud
$485 billion
Fst
Percentage reduction in operating costs
40%
Fst
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