From anti-money laundering software to account takeover prevention, we break down the categories of companies helping retail banks navigate fraud prevention and regulatory compliance.
Combating fraud to protect customers and complying with regulatory mandates are critical goals for retail banks.
These goals are only becoming more challenging to meet as retail banks watch fraud attempts climb.
Meanwhile, advancements in artificial intelligence are adding more fuel to the fire by enabling more sophisticated threats. For instance, bad actors are using generative AI to create fake identification photos for use during the account application process or to clone voices to trick phone verification systems, allowing them to open fraudulent accounts and steal from existing customers. This makes it more difficult for banks to comply with regulatory requirements, like anti-money laundering (AML) standards. These regulations require banks to monitor and screen financial transactions to avoid aiding illegal and high-risk activity, and they are associated with hefty non-compliance penalties.
In response to the rising frequency and sophistication of threats as well as the costs associated with them, banks are turning to technology solutions that simplify and enhance fraud prevention and regulatory compliance.
In the market map below, we identify 102 tech vendors addressing fraud and compliance across 12 different categories.
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