By Gloria Methri
Faced with rising financial crime threats and tighter resources, mid-sized banks and credit unions across the U.S. are rethinking how they fight fraud and money laundering.
A growing number is turning to FRAML—a combined approach that merges Fraud and Anti-Money Laundering (AML) strategies into one unified system.
According to a new report by AI financial crime platform Hawk, in partnership with research firm Celent, this shift is gaining real momentum.
The study, which surveyed over 100 risk and compliance leaders at U.S. financial institutions, found that 100% of respondents have either already started merging fraud and AML operations or plan to do so soon.
Why FRAML?
The benefits are hard to ignore.
53% of institutions say they’re planning to consolidate fraud and AML teams.
40% are actively combining systems, workflows, or departments.
77% expect to save over $1 million within five years.
36% predict savings will exceed $5 million.
And of those further along, 50% have already saved more than $5 million.
But FRAML isn’t just about trimming costs—it’s about smarter, faster risk management.
Traditional systems often operate in silos, making it harder to detect complex threats. With FRAML, banks get a clearer, real-time view of risk, helping them respond quickly and more accurately.
Tobias Schweiger, CEO and co-founder of Hawk, put it this way:
“Bringing AML and fraud together in one solution delivers serious cost savings, better risk coverage, and faster investigations.”
One of the key drivers of FRAML success? Artificial Intelligence.
As crime becomes more complex and harder to track, AI helps banks spot suspicious behavior faster and more accurately than old-school rules-based systems.
Key AI-related findings from the report:
57% of institutions are using AI to reduce false positives.
Others are using it to detect new threats, connect data across departments, and speed up investigations.
This tech boost is especially valuable for mid-sized banks, which don’t always have the same resources as big national players—but still face the same threats and compliance rules.
With FRAML, they can be more agile, more effective, and better prepared.
Neil Katkov, PhD, Director of Risk at Celent, summed it up:
“Mid-market banks have the most to gain from converging AML and fraud detection… it leads to better outcomes, greater efficiency, and lower costs.”
As financial regulations evolve and criminals get more sophisticated, mid-market banks need to stay ahead. FRAML—powered by real-time AI—is helping them do just that.
