From Risk to Revenue: Why Compliance and Fraud Tech Is Booming in Banking
For years, compliance and fraud prevention were seen as cost centres. In 2025, they’ve become strategic levers for innovation, customer trust, and digital acceleration — and that’s why investment in these areas is surging.
As financial institutions rush to integrate AI, embedded finance, and real-time payments, they’re also facing a growing tide of regulatory pressure, increased fraud complexity, and heightened customer identity risks.
The result? A booming market for RegTech, AML, and fraud analytics platforms — and a powerful opportunity for solution providers to meet real demand.
Compliance Budgets Are Breaking Records
According to industry estimates, Europe’s top banks are allocating over €8 billion in 2025 for digital compliance, AML modernisation, and regulatory automation.
Why the surge?
- The EU AI Act, DORA, and stricter KYC/AML directives are forcing banks to prove algorithmic transparency and operational resilience.
- Regulators now expect real-time compliance, not just quarterly reporting.
- Internal teams are overwhelmed, and tech is stepping in to scale their efforts.
This isn’t just a trend. It’s a structural transformation of how banks manage risk, report to regulators, and deliver compliant services at speed.
Fraud Tech Demand Hits All-Time High
As digital banking and GenAI-powered experiences become mainstream, so do new fraud vectors:
- Deepfake scams
- Synthetic identity fraud
- Account takeover through AI-generated social engineering
- Manipulated inputs to AI underwriting models
In response, leading banks are deploying AI-based fraud detection systems that go beyond static rules and blocklists, enabling more effective protection against fraud. They’re investing in:
- Behavioral biometrics
- Transaction anomaly detection
- Device fingerprinting
- Real-time model-driven risk scoring
The fraud teams aren’t just asking for better alerting — they need actionable, AI-driven defenses that can evolve with the threat landscape.
Tech Providers Are Winning Big
Vendors offering KYC automation, AML transaction monitoring, regulatory change tracking, and fraud orchestration platforms are now central to digital banking RFPs.
Solution providers like ComplyAdvantage, Tookitaki, Quantexa, and Feedzai have scaled rapidly in this space. However, there’s still a wide-open market for niche, API-first, and AI-native tools that meet regional compliance needs and evolving fraud use cases.
If your platform offers explainability, low-code integrations, or domain-specific machine learning capabilities, banks are actively seeking you.
Why This Matters for Sponsors
The NexGen Banking Summit 2025 will bring together Chief Risk Officers, Heads of Compliance, and Fraud Strategy Leads from top-tier banks across Europe, the UK, and North America.
As a sponsor, you’ll gain direct access to decision-makers looking to:
- Replace legacy AML systems
- Automate audit trails and regulatory reporting
- Detect fraud across digital and physical channels
- Embed compliance into GenAI-powered workflows
This is your chance to position your solution in a market with both urgent pain points and serious budgets.
Final Thought: Risk Tech Has Become Revenue Tech
The line between compliance, trust, and competitive advantage is vanishing fast.
Banks that treat compliance and fraud prevention as strategic investments, rather than merely regulatory obligations, will emerge as winners in 2025 and beyond. And the vendors that help them get there? They’ll win, too.
Join Us
London | October 15–16, 2025
New York | November 18, 2025
If your company builds RegTech, KYC, AML, or fraud analytics platforms, let’s talk about showcasing your solution at the NexGen Banking Summit 2025.
Connect with risk and compliance leaders actively shaping their tech stack.