Transaction Monitoring Systems Transaction Monitoring

Chronicle

2024

Global Transaction Monitoring Systems Market Size for Fintech Reaches $5.19 Billion

In 2024, the costs in the global market for transaction monitoring systems for fintech amounted to $5.19 billion. Almost 40% of this amount fell on the North American region. Such data are provided in the Fortune Business Insights review presented on July 14, 2025.

Transaction monitoring tools are used to detect suspicious activity and detect threats. Such systems help in the prevention of financial crimes and compliance. The Association of Certified Theft Investigators (ACFE) estimates that businesses using solutions to actively monitor transactions detect fraud 58% faster than those without such systems.

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One of the key drivers of the industry, the authors of the study call artificial intelligence. Neural networks are able to analyze data flows in real time, detecting deviations in the behavior of users or systems, atypical phenomena in network traffic and other suspicious events that may indicate fraud. The introduction of generative AI in the fintech sector contributes to improving cybersecurity and simplifying operational processes. At the same time, the efficiency of risk management is improved and costs are minimized. The high speed of processing data using neural networks allows you to quickly identify questionable transactions, reducing the time between detecting fraudulent activities and responding. AI also promotes compliance.

The review said fintech companies and other institutions are increasingly introducing blockchain into their monitoring systems. Cryptography, decentralization and consensus, which the blockchain architecture assumes, allow you to create the most secure basic system. Thus, blockchain provides the high level of protection and trust that modern digital transactions require. A monitoring system integrated with the blockchain helps to create tamper-proof channels with the ability to validate transactions in real time.

The authors of the study call the probability of false positives when legitimate operations are identified as suspicious. Processing and verifying such events may require significant resources and time, resulting in delays in identifying and stopping fraudulent activities. False positives can lead to increased operating costs.

Cloud and local segments are distinguished by deployment type. The first in 2024 provided the largest share of revenue and is forecast to grow at the highest average annual rate. Cloud solutions provide scalability and cost-effectiveness, and help accelerate financial innovation. Geographically, North America leads, accounting for 38.9% of costs, or $2.02 billion. Globally, the list of leading players includes:

• Oracle;
• Shufti;
• Sanction Scanner;
• Fico;
• SAS Institute;
• FIS;
• Ondato;
• Nice Actimize;
• Acuity Knowledge Partners;
• Moody's Corporation;
• AML Watcher;
• Unit21;
• Merkle Science;
• Anaptyss.

Fortune Business Insights analysts believe that in the future, the CAGR in the market under consideration will be 14.8%. As a result, in 2025, the cost of transaction monitoring systems for fintech will reach $5.9 billion, and by 2032 it will rise to about $15.47 billion.^[1]

The volume of the global transaction monitoring market for the year reached $18 billion

In 2024, costs in the global transaction monitoring market amounted to $17.98 billion. Approximately 38% of this amount fell on the North American region. Industry trends are addressed in the Fortune Business Insights survey published May 15, 2025.

By transaction monitoring, the authors of the study mean the process of controlling, analyzing and evaluating financial transactions, including in real time, to identify suspicious or fraudulent activities. Appropriate instruments are used by financial institutions, various businesses and regulators to combat money laundering, detect financial crimes and ensure the security of money transfers.

One of the main drivers of the industry is the deterioration of the cybersecurity situation and the increase in the number of incidents related to theft of funds. Attackers are constantly improving the tactics used to steal money. In particular, fraudsters are adopting advanced artificial intelligence technologies. Financial crimes are becoming increasingly complex, driving demand for transaction monitoring systems. Such tools are able to detect many anomalies and fraudulent schemes. The system can record various deviations from typical customer behavior, such as a sharp increase in the amount or frequency of payments, the transition from standard purchases to high-risk transactions, etc.

AI has a significant impact on the industry. These algorithms are able to analyze vast amounts of data with high efficiency to detect patterns and changes in transactions that may remain invisible to traditional systems. Generative AI helps to reduce the number of false positives of security tools by providing more accurate information about unusual behavior. AI models form profiles of typical customer behavior and compare them to real-time activity to identify deviations. GeneAI plays an important role in identifying new fraud schemes and proactively creating countermeasures. Neural networks help in collecting statistical data for retrospective analysis of incidents and constant optimization of algorithms. Dynamic notification systems are implemented using adaptive thresholds to instantly inform specialists about suspicious situations.

According to the deployment method, the market is segmented into cloud and local solutions. The first type of systems generated the most revenue in 2024 due to their flexibility, scalability, speed of update and cost-effectiveness. On the other hand, local deployments provide full control over sensitive data, which is critical for many organizations. From a geographical point of view, North America is in the lead, which at the end of 2024 showed a result of $6.83 billion. In terms of use, banks, fintech companies, e-commerce enterprises, etc. are distinguished. Banks hold the largest share - 41%. Among the significant players on a global scale are named:

• Oracle;
• Experian Information Solutions;
• SAS Institute;
• FIS;
• Ondato;
• Vespia OU;
• Moody’s Corporation;
• Acuity Knowledge Partners;
• Unit21;
• Fiserv;
• EastNets;
• ACI Worldwide;
• AML Watcher;
• Merkle Science;
• Fenergo;
• CaseWare;
• IdentityMind.

Fortune Business Insights analysts believe that in the future, the CAGR will be 14%. Thus, by 2032, costs may increase to $50.71 billion.^[2]

Notes