New Report on AML & Fraud Convergence Shows Mid-Market Banks & Credit Unions Are Embracing FRAML

New York— April 28, 2025  Hawk, the leading provider of AI-powered anti-money laundering (AML), screening and fraud prevention solutions, in partnership with Celent, has launched Trends in Fraud & AML Convergence at US Mid-Market Banks & Credit Unions. The report provides insights into how mid-market financial institutions, including community banks and credit unions, are converging fraud and AML programs to alleviate cost pressures, staff shortages and shifting regulatory demands. 

More than half (53%) of the financial institutions surveyed noted plans to increase consolidation of AML and fraud, with 40% currently in the process of converging systems and processes.  

Cost benefits underscore the shift toward consolidated technology—77% of respondents expect to save over $1M within the first five years of convergence and 36% expect savings to exceed $5M. Of the institutions that have already begun the convergence process, 50% have saved over $5M.  

“The report underscores what our customers are seeing, that bringing AML and fraud together in one comprehensive solution delivers significant cost savings, better risk coverage and improved investigation capabilities,” said Tobias Schweiger, CEO and co-founder of Hawk. “At Hawk, we’ve always believed that a holistic, real-time, AI-driven approach is the most effective way to fight financial crime. It’s exciting to see US banks and credit unions embracing this vision.” 

AI has shown significant impact for banks when introduced into consolidated AML and fraud frameworks. Currently, 57% of banks are applying AI for false positive reduction, while many are also deploying AI for identifying new risk, data cleansing, and to streamline investigations.  

Neil Katkov, PhD, Director – Risk at Celent, added: “Mid-market banks have the most to gain from converging AML and fraud detection. This explains why every single bank we surveyed is either integrating AML and fraud already or is planning to do so—because they know that a FRAML approach will lead to improved efficiency, better outcomes, and contained costs.” 

Download the full report here.