Ranking the Vendors of Anti-Money Laundering Solutions

by Neil Katkov, PhD, July 11, 2003

Abstract

Tokyo, Japan July 11, 2003

Celent estimates that between 2003 and 2005, banks, broker-dealers and insurance carriers in the US will spend an estimated total of US$632.2 million on anti-money laundering software solutions and related hardware and services.

The stringent compliance requirements of the USA PATRIOT Act, passed in October 2001, is driving a wave of spending in anti-money laundering (AML) applications. While large firms are the most active in implementing new AML solutions, mid-tier and even small institutions are also getting involved. Celent estimates that by 2006, 94 percent of large financial institutions in the US, 76 percent of mid-tiers, and 49 percent of small firms will have implemented new AML technologies.

Moreover, adoption of AML technologies is turning into something of a global phenomenon, as financial institutions around the world increasingly see the need to comply with US AML measures in order to remain trusted business partners of US financial institutions, and as regulators in other countries feel pressure from the US to put their AML houses in order.

Financial institutions looking to implement this technology, however, are faced with a bewildering array of both established and newer firms offering AML technology. In a new report, , Celent Communications profiles 16 of the leading vendors, provides a detailed comparative analysis of their products, and presents its assessment of the top solutions in two categories, transaction monitoring solutions and watch list filtering solutions. The results of the study are summarized below.

"Just as crucial as high tech analytical capabilities are an AML solution's ease-of-use and workflow features," comments

Neil Katkov, Celent Senior Analyst and author of the report. "Faced with the potentially explosive costs擁ncluding increased compliance personnel requirements熔f complying with the US PATRIOT Act, financial institutions need to find the most cost-effective, labor-saving method of achieving compliance."

Vendors included in this study are: ACI Worldwide, ACL Services, Actimize, Americas Software, Bankers Systems, Bridger Systems, FircoSoft, GIFTS Software, Infrasoft, Mantas, Net Economy, Prime Associates, SAS Institute, Searchspace, STB Systems and Sybase.

The 76-page report contains 32 figures and 9 tables.

A is available online.

Rank

Transaction Monitoring Watch List Filtering
Large Institutions Small-Medium Institutions Large Institutions Small-Medium Institutions
1 Searchspace Actimize FircoSoft Prime Associates
2 Mantas STB Systems

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Americas Software
3 ACI Worldwide Prime Associates

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Bridger Systems
Vendor to Watch SAS Institute Infrasoft

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Source: Celent Communications

of Celent Communications' research services can download the report electronically by clicking on the icon to the left.  Non-members should contact info@celent.com for more information.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

 

Tokyo, Japan July 11, 2003

Ranking the Vendors of  Anti-Money Laundering Solutions

Return to report Abstract

 

EXECUTIVE SUMMARY 4
INTRODUCTION 6
  The Global Market for AML 7
  AML Technology Vendors 8
AML TECHNOLOGY: OVERVIEW AND ISSUES 9
  Transaction Monitoring Solutions 10
  Watch List Filtering Solutions 14
  Hits and False Positives: The Right Balance 15
  Ease of Use 16
  Implementation Time 16
  Size and Cost 17
VENDORS 18
  ACI Worldwide 19
  ACL Services 23
  Actimize 26
  Americas Software 28
  Bankers Systems 30
  Bridger Systems 33
  FircoSoft 35
  Gifts Software 37
  InfraSoft Technologies 40
  Mantas 43
  Net Economy 46
  Prime Associates 50
  SAS Institute 53
  Searchspace 56
  STB Systems 59
  Sybase 61
COMPARATIVE ANALYSIS 66
THE RANKING 73
SELECTING A VENDOR AND FOLLOWING THROUGH 74

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