Hidden Threats, Local Impact: New Industry Survey Finds U.S. Mid-size and Community Banks on the Front Lines of Rising Financial Crime

September 16, 2025 at 05:00 AM EDT

NEW YORK, Sept. 16, 2025 (GLOBE NEWSWIRE) -- A new survey of 200 anti-money laundering (AML) professionals at U.S. mid-size and community banks reveals a growing gap between confidence and capability in the fight against financial crime. The FinCrime Pulse Report: U.S. Mid-size and Community Banks, conducted by Quantexa, a pioneer in Decision Intelligence for enterprises and public sector and a leading global provider of financial crime solutions for the global banking industry, underscores the mounting pressure on institutions that serve as the backbone of the American economy and small business sector.

Globally, the United Nations Office on Drugs and Crime (UNODC) estimates that $800 billion to $2 trillion is laundered every year, roughly 2–5% of global GDP. While the spotlight often falls on large institutions, mid-size and community banks are uniquely vulnerable as they face the same regulatory expectations as the largest banks, but with fewer resources, leaner teams, and older technology.

According to the survey, nearly half of AML professionals say reliance on outdated systems is their biggest barrier, with many citing fragmented data and the inability to monitor risks in real time. Despite these challenges, 94% express confidence in their ability to detect emerging threats, even while 46% admit their investigations remain slow and inefficient.

The report also highlights a significant opportunity for mid-sized and community banks to close these gaps by applying better data, contextual insights, and AI solutions, capabilities that are increasingly available to institutions of all sizes.

“Mid-size and community banks are the heart of Main Street America, powering small business growth and local economies,” said Chris Bagnall, Head of Financial Crime Solutions for North America at Quantexa. “With financial crime evolving faster than ever and outdated systems leaving them exposed, these banks have a critical opportunity to harness better data and AI to make smarter decisions and protect the communities and businesses they serve.”

Key Survey Findings

Outdated systems and tech gaps: Legacy technology, poor data quality, limited AI/ML adoption (47%), and lack of real-time monitoring (41%) continue to undermine AML effectiveness.
Resource and expertise constraints: Operational friction from inefficient investigations and high false positives drains scarce resources, while nearly half (47%) of banks lack the internal expertise to modernize.
Regulatory uncertainty slows progress: With 45% citing unclear guidance around emerging technologies like AI, banks face “decision paralysis” that hinders innovation and adoption.

Looking ahead, respondents identified AI, real-time monitoring, and interbank collaboration as the most promising ways to modernize AML programs. Nearly 93% also said interbank collaboration under Section 314(b) of the USA PATRIOT Act is critical to improving detection of illicit activity.

The report outlines a five-point call-to-action urging mid-size and community banks to modernize outdated systems, adopt AI and real-time monitoring, and make greater use of contextual data to strengthen detection capabilities. It emphasizes the importance of collaboration across institutions and with regulators to share intelligence and help shape expectations around emerging technologies. Finally, it calls on banks to invest in their people and processes to build sustainable expertise, resilience, and a more proactive stance in the fight against financial crime.

The Quantexa FinCrime Pulse Report: Download the full report to access the survey findings and insights.

About the Survey
The findings are based on an independent survey conducted by Censuswide in July 2025 of 200 U.S. AML professionals at mid-size and community banks with $5B–$200B in assets. All respondents held director-level or higher roles.

About Quantexa
Quantexa is a global data, analytics and AI software company pioneering Decision Intelligence to help organizations make confident decisions with contextual data. Using the latest advancements in AI, our Decision Intelligence Platform transforms siloed data into connected, contextual insights to empower the shift from a data-driven to a decision-centric organization. Our customers use Quantexa technology to protect, optimize, and grow by solving complex challenges across the entire organization through modern data management, customer intelligence, KYC, financial crime, risk, fraud, and security.

The Quantexa Decision Intelligence Platform enhances operational performance with over 90% more accuracy and 60 times faster analytical model resolution than traditional approaches. An independently commissioned Forrester TEI study found that customers achieved a 228% ROI over three years. Founded in 2016, Quantexa has over 850 employees and tens of thousands of users globally, working with billions of data points across the world. For more information, visit www.quantexa.com or follow us on LinkedIn.

Media Inquiries
C: Michael Lane, VP of External Communications
T: +1 917 450 7387
E: michaellane@quantexa.com

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Hidden Threats, Local Impact: New Industry Survey Finds U.S. Mid-size and Community Banks on the Front Lines of Rising Financial Crime

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