What’s the ROI of FRAML?
Mid-market US financial institutions are seeing significant cost savings from the convergence of fraud and anti-money laundering (FRAML). That's the finding of a report from Hawk and Celent, which provides rare insight into the ROI of FRAML and how mid-sized US banks and credit unions are combining their anti-financial crime operations.
The report also reveals what’s driving the shift towards FRAML, the challenges that banks are overcoming to achieve convergence, and the many other advantages that come from combining AML and fraud.
[Read the full report to learn what’s driving FRAML adoption and what benefits are emerging.]
Siloed AML & fraud: the hidden cost
Many financial institutions approach fraud and AML as siloed efforts, requiring separate teams, processes, and systems. While it is true that each requires specialist expertise, this total separation leads to:
- duplication of efforts
- slower response times, and
- missed connections in critical investigations.
At the same time, regulatory pressure is increasing. Examiners expect more end-to-end risk visibility and unified reporting across financial crime functions. But with fraud and AML convergence, financial institutions can enhance efficiency, improve detection, and meet evolving compliance expectations. And all while reducing costs.
How much money is saved by FRAML?
Financial institutions that unify their fraud prevention and AML operations aren’t just improving compliance and strengthening their defenses against financial crime. They’re also unlocking serious cost savings. According to the Hawk-Celent report, 50% of banks that have converged their fraud and AML programs report annual savings exceeding $5 million.
Even those just beginning the consolidation journey estimate long-term savings of up to $5 million over five years. Another 41% anticipate savings between $1 million and $5 million.
The strategic advantages of fraud + AML integration
For mid-sized banks and credit unions, the financial upside is clear to see. But beyond cost savings, the integration of fraud and AML leads to a whole raft of advantages, including improved data sharing, faster investigations, and better risk visibility across the organization.
In an era where agility, compliance, and cost control matter more than ever, FRAML isn’t just a buzzword – it’s a strategic priority. And as our report makes clear: the use of AI can amplify the impact such a change can make.
Key takeaway: FRAML can deliver significant ROI
The advantages to combining fraud and AML are undeniable. Institutions that are converging fraud and AML are finding that a unified approach not only reduces costs. It helps them to:
- enhance efficiency
- improve detection
- stop fraudulent transactions, and
- meet evolving compliance expectations
About Hawk
Hawk delivers a unified, AI-enabled platform that brings AML compliance and real-time fraud prevention together. By reducing false positives and enabling smarter, faster investigations, we help banks and credit unions unlock the full potential of FRAML and eliminate siloed working without sacrificing specialist expertise.
Find out more about our holistic platform for AML, screening and fraud – request a demo today.
Smarter Together: How Unified Fraud and AML Strategies Slash Costs
