The financial crime and risk technology space saw a transformative year in 2024, with AI integration, acquisitions, and centralized risk platforms driving innovation. As businesses navigate an increasingly complex risk landscape, here are the highlights shaping the industry and the outlook for 2025.
1) Major Acquisitions Shaping the Industry
2024 was a busy year for consolidation and expansion, for example:
- LexisNexis Risk Solutions acquired IDVerse, boosting its digital identity onboarding and verification capabilities. They also expanded its behavioural intelligence offerings by acquiring BehavioSec.
- Visa completed its acquisition of Featurespace, integrating cutting-edge real-time AI fraud prevention technology into its ecosystem.
- Permira acquired BioCatch for $1.3 billion, emphasizing the growing value of behavioural biometrics in combating financial crime.
- SymphonyAI, following their acquisition of NetReveal in 2022, might be targeting a 2025 IPO with their $500 million revenue run rate.
These are just some examples, but they highlight the increasing importance of seamless, AI-driven solutions to help manage the increasingly complex risk environment.
2) Industry Recognition and Awards
The 2024 award season helped us to understand the lay of the land, reinforcing the shortlist of key vendors whilst highlighting some newcomers.
Chartis Awards were a focal point of the year, recognizing exceptional contributions to the field:
- Feedzai ranked 4th in the RiskTech AI 50 and 13th in the Financial Crime and Compliance50, while winning categories for AI-driven Fraud Prevention and Emerging Crime Typology Detection.
- NICE Actimize topped the Financial Crime and Compliance50 at 1st place and was 8th in the RiskTech AI 50, earning awards in multiple categories such as AI in AML and Transaction Monitoring and Case Management.
- Quantexa achieved notable success, ranking 6th in the Financial Crime and Compliance50 and 16th in the RiskTech AI 50, alongside category wins for Advanced Tax Fraud Capabilities and AI in Risk Data Aggregation.
- Other vendors also made their mark in the RiskTech AI 50, including Moody's (3rd place), Hawk:AI (17th place), and SymphonyAI (15th place). Each company demonstrated strong leadership in their respective niches, particularly in leveraging AI for fraud prevention and data aggregation.
The AI Breakthrough Awards, covering a wide range of technologies and organisations, recognised a number of vendors in the risk domain, for example:
- LexisNexis Risk Solutions was named Best Overall AI Company, a testament to its advancements in AI-powered risk solutions.
- Socure earned the award for Best AI-based Solution for Fraud Prevention, while Onfido was recognized for Best Use of AI for Authentication.
3) The Rise of AI-Driven Solutions
AI remained a focal point for vendors as they integrated GenAI and machine learning capabilities to streamline the full spectrum of risk management, for example:
- NICE Actimize launched three generative AI-based tools, enhancing investigative efficiency and regulatory reporting.
- DataVisor launched its AI-powered AML solution.
- Inscribe.ai introduced AI agents designed to support fraud and compliance analysts.
- Quantexa started to roll out their 'Q-assist' GenAI product to early adopters such as HSBC and BNYM.
These advancements are redefining the role of AI in risk management, moving beyond detection to provide predictive and proactive tools.
What's the Outlook for Risk Technologies in 2025?
Vendors are expected to double down on AI-powered technologies to enhance fraud detection and prevention capabilities. The focus will shift toward solutions that not only identify risks but also predict and mitigate them proactively.
Move to Central Solutions
In response to more sophisticated fraud attempts and an increasingly broad and complex risk environment, vendors are likely to continue moving towards being able to offer a 'central risk platform' which can cover a range of risks in one place.
Scam Management
The rising tide of scams, fueled by digital transformation and social engineering, demands urgent attention. In 2025, vendors are likely to prioritize:
- AI tools for real-time scam detection and prevention.
- Enhanced collaboration between public and private sectors to dismantle scam networks.
- Educational initiatives empowering users to recognize and prevent scams.
Regulation
The Corporate Sustainability Reporting Directive (CSRD) will increase demand for ESG data tools and supply chain monitoring. This regulatory shift will also impact fraud prevention strategies, particularly in compliance and risk reporting frameworks.
