Trends in the convergence of Fraud and AML at U.S. mid-market banks
Celent x Hawk Report
Trends in Fraud & AML Convergence at US Mid-Market Banks & Credit Unions
A comprehensive overview of how mid-market banks and credit unions in the United States are perceiving and approaching the convergence of fraud and AML
More than half of US mid-market banks and credit unions see the practical and economic value of a FRAML approach and have already taken steps in the direction of fraud and AML convergence
60%
Have implemented some degree of integration between fraud and AML processes
77%
Expect to save over $1M within the first 5 years of convergence, and over a third of responders expect the savings to exceed $5M
53%
Have merged at least some of their technology/systems
Why is a FRAML approach becoming necessary?
Pros of adopting a FRAML approach
Learn about the current state of FRAML in US mid-market banks and credit unions
Despite growing interest, most financial institutions struggle with consolidating their fraud and AML efforts, the main challenges being:
Siloed data & fragmented insight
30% of banks report difficulties in consolidating their data
Bolting fraud & AML systems together
37% of banks are challenged with integrating their separate AML and fraud systems
Integrating real-time & batch processes
43% of banks are challenged with unifying the mechanics of AML and Fraud
Building a compelling business case
83% of responders struggle with proving the business value of a FRAML approach
In order for mid-market financial institutions to reap the benefits of fraud and AML convergence, they need a solution built to enable a true FRAML approach
The Unsustainable Way
- Siloed data storing and processing
- Fragmented insights that are hard to interpret
- Limited investigator clarity and black-box alerting based on partial information
- Lack of agility and lag in adapting to regulatory changes
- Operational inefficiencies and inefficient distribution of resources across teams
The Hawk Way
- Shared data, used across use cases
- Consolidated insights for faster, informed decisions
- White-box, explainable AI for quick, substantiated decision-making
- Agile and versatile system, with real-time, on-demand, and batch optionality
- Optimized, consolidated resources across fraud and AML teams
3-5x
Higher Precision
70%
False Positive Reduction
$1-5M
Estimated cost savings in the first 5 years
Address risks at speed
Hawk blocks suspicious transactions in true real-time (200ms), allowing you to optimize rule coverage with self-serve rule configuration and sandbox testing.
Strengthen defenses without adding complexity
Sharpen threat detection and slash false positives with AI. The clarity of the explanations simplifies investigations and significantly improves decision-making.
Streamline Operations
Reduce maintenance and accelerate investigations with a single, consolidated system.