IT and Operational Spending in AML-KYC: 2020 Edition
Celent estimates that financial industry spending on AML-KYC compliance technology and operations will reach US$34.1 billion globally in 2020.
2020 was a disruptive year in AML because COVID-19 forced financial institutions to reprioritize planned initiatives and redeploy resources to tackle the multifaceted impact of the pandemic. Some planned projects were put on hold while the crisis also called for new enhancements, such as recalibrating detection systems and supporting remote work environments. As a result, IT spending growth in AML-KYC in 2020 was significantly less than its long-term trend.
Celent estimates that spending on technology used in AML-KYC compliance will reach US$9.1 billion and that spending on operations will rise to US$25.0 billion globally in 2020.
AML-KYC Technology Spending (2020)
Changing customer behavior driven by COVID-19 and the need to support remote work are shifting attitudes toward new technology such as cloud and artificial intelligence and are expected to expedite their adoption and drive future spending.
This report provides Celent’s estimates of spending on AML-KYC technology and operations by financial institutions worldwide, including banks, insurance companies, broker-dealers, and wealth and asset management firms. The report presents global estimates as well as detailed breakdowns of:
- Spending by global region: North America, Europe, Asia, and the rest of the world.
- Functional distribution of spending with focus on three key AML-KYC components: KYC-CDD, sanctions screening, and transaction monitoring.
- Technology spending breakdown by: internal spending, hardware, external software, and external services.
- Operational spending trends (in addition to technology spending).
- Spending according to the type and size of financial institution.
- Spending on new initiatives vs. run-the-bank maintenance activities.
- Recommendations for financial institutions and solution providers.
Download a free sample of the report here: