FRAML solutions 2023: market and vendor landscape

As concerns around financial crime escalate, financial institutions and regulators are placing greater emphasis on combined fraud and anti-money laundering (FRAML) solutions. For financial institutions, the benefits of an integrated FRAML platform include improved capabilities, collaboration, cost-effectiveness and economies of scale. And, by merging siloed teams, firms can boost operational efficiency and optimise risk management, which might help to explain FRAML’s growing popularity. 

Financial institutions are taking several approaches to FRAML, notably managed services, orchestration and component solutions. Some are even restructuring their organisations to align FRAML solutions with increasingly sophisticated customer journeys. Machine learning tools are also being used to automate many tasks involved in FRAML compliance and solutions, and could revolutionise this space. Vendors, meanwhile, are broadly adopting four categories of approach: managed services, packaged solutions, platform solutions and data- and analytics-focused FRAML.

As a standalone packaged solution, FRAML will remain a core component in organisations’ drive to fight financial crime in a streamlined and consolidated way. However, it is vital to remember that the requirements of a FRAML process are highly contextual, and can vary according to several factors, including jurisdiction, operating model, size and business line. This makes it difficult to treat FRAML as a single distinct approach. Indeed, ultimately, the term FRAML could be misleading, and even obsolete. Although firms can make significant operational gains by combining fraud and anti-money laundering workflows, what they are actually pursuing goes beyond just these two disciplines.

Download the Chartis report, FRAML solutions 2023: market and vendor landscape

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