The global financial fraud detection software market revenue was around US$ 13 billion in 2022 and is estimated to reach US$ 50.3 billion by 2032, growing at a compound annual growth rate (CAGR) of 14.8% during the forecast period from 2023 to 2032.
Financial fraud detection software applications are utilized to deliver analytical solutions for fraud incidents and support in preventing or identifying future events. Nowadays, enterprises are more sensitive to incidents of fraud that may result in financial casualties due to the generation of huge amounts of enterprise data and the rise in technological improvements.
Factors Influencing Market Growth
- The increasing adoption of mobile banking services and online banking applications and growing incidences of financial fraud are augmenting the growth of the financial fraud detection software market.
- The rise in the usage of digital transformation technology positively influences the growth of the global financial fraud detection software market.
- The high implementation costs and the rising incidents of false positive rates are hindering the growth of the financial fraud detection software market.
- The growing innovations in the fintech industry are anticipated to offer remunerative opportunities for the development of the global financial fraud detection software market during the forecast period.
Impact of COVID-19
The global financial fraud detection software market has noticed stable growth during the COVID-19 pandemic because of the rise in demand for fraud detection solutions, anti-money laundering (AML), and other solutions during the pandemic. Also, the pandemic has resulted in transformations in model performance, as more ongoing validation and monitoring was needed to mitigate different types of risks, compared to testing methods and static validation, which, in turn, propel the expansion of developed machine learning models.
Regional Analysis
In 2022, North America dominated the global financial fraud detection software market in terms of revenue and is anticipated to maintain its position during the forecast period because of the rise in the adoption of financial fraud detection software in small and medium enterprises to ensure the effective flow of financial activities.
Also, Asia-Pacific is anticipated to notice significant growth in the global market during the forecast period, due to the rising adoption of mobile-based and web-based business applications in the sector of banking.
Leading Companies
The leading prominent companies profiled in the global financial fraud detection software market are: -
- Feedzai
- FiCO
- Oracle Corporation
- ThreatMetrix
- SAS Institute Inc.
- SAP SE
- Fiserv, Inc.
- IBM Corporation
- Software AG
- Experian plc.
- Other prominent key players
Segmentation Outline
The global financial fraud detection software market segmentation focuses on Component, Deployment Mode, Fraud Type, End User, and Region.
Segmentation based on Component
- Solution
- Service
Segmentation based on Deployment Mode
- On-premise
- Cloud
Segmentation based on Fraud Type
- Money Laundering
- Identity Theft
- Debit and Credit Card Fraud
- Claim Frauds
- Transfer Frauds
- Others
Segmentation based on End User
- Banks
- NBFCs
- Others
Segmentation based on Region
- North America
- The U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Netherlands
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Singapore
- Rest Of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa