South America Anti-Money Laundering Solution Market Forecast to 2027 - COVID-19 Impact and Regional Analysis by Component (Software and Services), Deployment Type (On-premises and Cloud), Product (Transaction Monitoring, Compliance Management, Currency Transaction Reporting, and Customer Identity Management), and Industry (Healthcare, BFSI, Retail, IT and Telecom, Government, and Others)

The SAM anti-money laundering solution market is expected to grow from US$ 46.45 million in 2019 to US$ 176.00 million by 2027; it is estimated to grow at a CAGR of 15.8 % from 2020 to 2027.

Growing information interchange among banks and other financial institutions is driving the growth of the SAM a0nti-money laundering solution market. While information sharing has witnessed success among regulators and banks, the SAM market is becoming more prevalent among smaller financial institutions. In order to make sure that this trend is a success, the SAM anti-money laundering market landscape might also see a culture of collaboration. Furthermore, the SAM market is projected to experience various obstacles in information sharing, which might include inconsistency of territorial regulation and privacy legislation. Over the period, information sharing has evolved to be of crucial importance to effectively fight financial crimes. Companies across SAM have had experienced challenges regarding the traditional trend of not sharing information due to the threat of tipping off and privacy-related problems. For the coming years, the FinTech and technologies in SAM region are anticipated to have a significant influence in structuring the information sharing process. Therefore, the growing financial institutes across the SAM are expected to witness more detailed information exchange with the banks that would increase the demand of anti-money laundering solution for authentication purpose, which, in turn, would drive the SAM anti-money laundering solution market during the forecast period.

The COVID-19 outbreak is hindering the countries in SAM, especially Brazil. The government in SAM is taking several initiatives to protect people and control COVID-19 spread in the region through lockdowns, trade bans, and travel restrictions. These measures are restricting the region’s economic growth as the region would face lower export revenues, both from the drop in commodity prices and reduction in export volumes, especially to major trading partners such as China, Europe, and North America. The total number of cases in Brazil accounted for 7,213,155, out of which 186,356 total deaths are recorded. Due to the COVID-19 epidemic, online transactions received a lift in several countries of the region. The online card payment transactions are witnessing an increase, more than doubling in Brazil and Chile. Furthermore, in Brazil, fintech is allocating financial aid to those affected by the COVID-19 crisis. Moreover, digital banking penetration in SAM is bolstering as consumers and merchants attempt to evade handling cash.

Based on industry, the BFSI segment led the SAM anti-money laundering solution market in 2019. Banks have responded to these trends by investing heavily in people, manual controls (“checkers checking the checkers”), and systems addressing point-in-time needs. Banks have typically used a piecemeal approach, adding staff to areas with the weakest controls. Often this has resulted in compliance programs built for individual countries, product lines, and customer segments—with all the duplication that suggests. Banks have also hired thousands of investigators to manually review high-risk transactions and accounts identified through inefficient and exception-based rules. Banks are also spending lots of money to maintain the processes and systems they built in response to remediation needs. Advantages of anti-money laundering solutions in bank such as two-way authentication, highly secured, data analysis, and customer report generation are expected to increase its demand in coming years, which would drive the SAM anti-money laundering solution market.        

The overall SAM anti-money laundering solution market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the SAM anti-money laundering solution market with respect to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, anti-money laundering solution market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the SAM anti-money laundering solution market. Accenture; ACI WORLDWIDE, INC.; BAE Systems plc; EastNets.com; LexisNexis Risk Solutions Group; Nasdaq Inc.; NICE Ltd.; Oracle Corporation; and SAS Institute Inc. are among the players operating in the market.