Mid-sized US banks and credit unions are reaping major financial rewards from combining their fraud and anti-money laundering (AML) operations.
A recent report from Hawk and Celent has revealed the return on investment (ROI) of adopting the fraud and AML convergence model, known as FRAML, showing how it delivers significant cost savings while strengthening compliance and risk management.
Traditionally, many financial institutions have handled fraud and AML through entirely separate teams, systems, and processes. While both areas require specialist expertise, this siloed approach has resulted in duplicated efforts, slower investigations, and missed links between cases. Regulators are now pushing for better end-to-end risk visibility and unified reporting, and FRAML offers a solution that not only improves efficiency but also cuts costs.
The financial savings are striking. According to the Hawk-Celent findings, 50% of banks that have already integrated fraud and AML operations report annual savings of more than $5m. Institutions at the start of their convergence journey expect to save up to $5m over five years, with a further 41% predicting savings between $1m and $5m as integration progresses.
The benefits extend well beyond cost reduction. By consolidating these critical functions, banks gain improved data sharing across teams, faster investigations, and stronger risk visibility across their operations. This unified approach helps them respond more quickly to suspicious activity while meeting evolving compliance expectations.
The report highlights that in today’s environment, where compliance demands, cost control, and operational agility are top priorities, FRAML has shifted from being a buzzword to a strategic necessity. The research also points to AI as a powerful enabler, capable of maximising the impact of integration by automating processes and enhancing detection capabilities.
Ultimately, institutions converging their fraud and AML operations are finding the benefits hard to ignore. A unified approach enables them to strengthen defences against financial crime, improve efficiency, and deliver significant long-term ROI.
Read the full post from Hawk here.
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