Financial crimes are evolving fast, and regulators are working continuously to develop global anti-money laundering and counter-terrorism financing guidelines. Financial institutions across the globe are under pressure to tighten controls, detect fraud instantly, and stay compliant. Today, real-time transaction monitoring has become a strategic priority, with 92% of the institutions investing in real-time monitoring solutions. As a result, the global transaction monitoring market is set to grow from $18.31 billion in 2024 to $50.25 billion by 2033, at a CAGR of 11.28%. Yet, even with automation, 40% of alerts still need manual intervention, highlighting the need for a faster, smarter approach to transaction anomaly detection.
understanding real-time transaction monitoring
With increased digital payments and borderless commerce, businesses are processing thousands of transactions every second. Real-time transaction monitoring refers to the instant analysis of transaction data to detect and prevent suspicious or illegal activity.
From growing expectations for instant, secure transactions to added complexity of digital-first business models, several factors are driving its rapid adoption. Regulatory scrutiny has also intensified, especially around anti-money laundering and fraud prevention. As a result, the key objectives of anomaly detection in transaction data are to:
- Ensure compliance
- Prevent financial crime
- Boost operational efficiency
To achieve this, modern monitoring solutions continuously scan each transaction in real time and integrate with dynamic risk models and third-party data sources. They also use adaptive technologies that evolve alongside emerging threats, ensuring ongoing protection and relevance.
anomaly detection in financial transactions
Transaction anomaly detection is at the heart of real-time transaction monitoring systems. These systems use parameters from anti-money laundering and counterterrorism financing guidelines, applying a combination of predefined rules and advanced analytics to transaction data.
Financial institutions often use the following triggers to flag potentially risky behaviour:
- Unverified fund sources: Unclear origin or destination of money.
- Threshold violations: Transactions exceeding preset values.
- High-value transfers: Large or frequent domestic/international movements.
- Unusual activity patterns: Sudden changes in transaction behaviour or usage.
- Large cash movements: Substantial deposits or withdrawals that fall outside typical ranges.
Some of the most common use cases of real-time transaction monitoring include:
- Banking: Fraud detection, KYC compliance, and anti-money laundering compliance.
- E-commerce: Identifying stolen card usage or fake accounts.
- Telecom: Spotting SIM box fraud, international call rerouting, and account abuse.
In each case, anomaly detection in financial transactions enables faster decision-making, better risk profiling, and reduced exposure to financial and reputational damage.
Infosys BPM offers comprehensive financial crime compliance solutions, helping enterprises monitor, detect, and respond to risks in real time. Leveraging next-gen AI-powered tools and deep process transformation expertise, Infosys BPM empowers organisations to integrate real-time transaction monitoring into their operations. This approach strengthens risk mitigation, ensures regulatory compliance, and drives operational excellence.
benefits of real-time transaction monitoring
Adopting real-time transaction monitoring can be resource-intensive, demanding infrastructure investment, legacy system integration, and ongoing oversight. However, failing to do so can attract financial and reputational risks. In the first quarter of 2025 alone, 25% of financial institutions faced fines for transaction monitoring failures. And as fraud tactics evolve, businesses cannot afford delays in fraud detection and prevention.
Investing in real-time transaction anomaly detection can deliver significant value across the board, offering benefits like:
- Achieve regulatory compliance: Stay ahead of anti-money laundering and counter-terrorist financing requirements with proactive detection and automated reporting.
- Build trust and transparency: Demonstrate strong oversight to stakeholders, regulators, and customers, creating a foundation of accountability.
- Adopt a risk-based approach: Tailor actions based on customer profiles and behaviours, enabling intelligent segmentation and adaptive risk models.
- Prevent financial crime in real time: Stop fraud, laundering, and suspicious activity the moment it happens – not after the fact.
- Gain visibility and control: Empower leadership with centralised dashboards and real-time insights for better strategic decisions.
- Adapt to modern payment methods: Manage risks associated with digital wallets, cross-border payments, and cryptocurrency transactions.
- Enhance customer experience: Protect users without adding friction, improving trust and satisfaction through seamless protection.
- Act immediately with live insights: Monitor patterns, isolate threats, and trigger alerts as activity unfolds – preventing escalation.
- Reduce false positives: Fine-tune rules and integrate data sources to minimise noise and focus efforts on real risk.
conclusion
Real-time oversight, monitoring, and anomaly detection in transaction data have become a strategic necessity for today’s digital-first businesses. As threats grow more complex, real-time transaction monitoring becomes the frontline defence against financial crimes. Organisations that prioritise real-time monitoring not only ensure financial crime compliance but also build resilience, agility, and a competitive edge for future-proof operations.
