The emergence of cloud-based Anti-Money Laundering (AML) solutions has enabled organizations to increase their efficiency and reduce the cost of deploying valuable IT infrastructure. This is a huge reason why the Global AML Market is expected to post a CAGR of 11.54 percent for the 2013-2018 period.
However, many organizations are still analyzing the feasibility and relevance of cloud computing solutions in their IT operations.
Why Do Enterprises Want Cloud-Based AML Solutions?
The cloud-based model for AML offers pay-per-use model, which provides cost-effective access to AML software any time any place by multiple users. These solutions help to optimize business processes and increase profitability, thereby enhancing productivity and competitive advantage. They offer flexible and low-cost business models, which help organizations increase their focus on core business activities. Moreover they enhance customer satisfaction levels and enable organizations to restructure operations at a lower cost.
Although many enterprises have an increased understanding of the benefits of cloud-based AML solutions, many concerns and risks, particularly in relation to data sharing and security, are affecting the adoption of such solutions.
What are the Main Concerns about Cloud-Based AML Solutions?
As with other data quality and data integration applications, AML software suffers from safety concerns. Financial enterprises are concerned about the data security features of AML solutions, especially if the software is installed using a cloud-based model.
For instance, the deployment and usage of SaaS-based AML can save the data in the cloud servers of the vendors, and in a multi-tenant model, there is always a risk of information leaks, which can result in the misuse or manipulation of the data. For financial organizations, the security of data in the cloud infrastructure is a key factor in their decision to adopt AML.
Cloud-Based vs. On-Premises AML Solutions: Market Landscape
The On-premise AML Software segment accounted for the majority of the market revenue, and held a share of 89 percent in 2013. This segment is growing at a faster rate and is expected to increase its market share in the near future.
The Cloud-based AML Software segment is also growing at a significant rate and held a share of 11 percent in 2013. Many AML software vendors have started delivering SaaS-based AML to leverage growing adoption of cloud-based AML solutions.
The emergence of many traditional AML solution vendors in the Cloud-based AML Software segment is a significant trend in the Global AML Software Market. Many traditional AML vendors have started providing cloud solutions to their customers, which is positively affecting the market growth.
This trend has also led to innovative developments in cloud computing technology and its business use. It is anticipated that some traditional AML vendors not offering cloud-based solutions will face increased competition in the future. Hence, they need to focus on building expertise in cloud computing.
