Fraud Detection Software - Banking: Market Size & Forecast 2026

The global fraud detection software market for banking sits at approximately USD 12.5 billion in 2025 (base year), growing at a 17.2% CAGR through 2032 to reach roughly USD 37.7 billion. The market is structurally tight between incumbent enterprise platforms with deep regulatory integration and a new generation of AI-native challengers deploying agentic workflows. Cloud deployment dominates new procurement, and the regulatory stack DORA, PSD2 SCA, GDPR Article 22, and EBA AML guidelines is tightening vendor qualification criteria across EU and US jurisdictions simultaneously. > **Analyst Take.** The call is simple: buyers who re-qualify their vendor shortlists before the DORA compliance deadline (17 January 2025 implementation, with ICT vendor reviews ongoing through 2026) will lock in better terms. The vendors who benefit are the AI-native challengers, not the legacy suite providers. We

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