DUBLIN, September 16, 2021--(BUSINESS WIRE)--The "Identity Verification Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" report has been added to ResearchAndMarkets.com's offering.
The global identity verification market was valued at USD 7.66 billion in 2020. It is expected to reach USD 16.65 billion by 2026, registering a CAGR of 13.29% during the forecast period (2021-2026).
Trulioo Information Services Inc.
Mitek Systems Inc.
IBM Corporation (Trusteer)
Nuance Communications Inc.
Key Market Trends
Financial Services Accounts for the Largest Market Share
Digital ID verification is increasingly becoming a vital part of banking, and the industry is expected to command a significant share of the global market during the forecast period. It is one of the highly regulated, governed industries, and it is also prone to identity frauds that augment the demand.
Banks and financial service providers, including pension and insurance providers, have a stringent identity and personal data requirements, often known as the 'Know Your Customer (KYC) requirements. Whether opening a bank account, switching accounts, taking out life insurance, or accessing pension records, a customer's identity, several such attributes are required to be gathered and verified as part of a firm's risk-based assessment and legal obligations.
Additionally, Metal Pay, a peer-to-peer payments platform that allows users to buy, sell, trade, and send crypto using cryptocurrency trading pairs or fiat money, wanted to differentiate itself from its competitors by offering a quick and seamless account opening process. The company had requirements to comply with strict AML and KYC requirements, so identity verification during the account opening process became a critical component in minimizing risk and eliminating fraud.
Globally, the financial industry is on the verge of a digital revolution, with an increasing propensity toward fintech to promote digital payments, where fintech operates with customers digitally, similar to banks and financial institutions' work. The growing fintech investments worldwide are expected to influence the adoption of identity verifications as competition increases and vendors intensely focus on gaining new customers.
Furthermore, new government regulations, such as the European Union's Revised Payment Services Directive (PSD2), require banks to provide each other with access to account information and transaction data. This suggests that there is more incentive than ever for a unified digital identity system that seamlessly allows users to verify their identities across a range of FIs.
Asia Pacific to Witness Significant Market Growth
The Asia-Pacific region is home to some densely populated countries, such as India and China. The region is one of the fastest adopters of technology with increasing internet penetration. Also, as these emerging economies adopt digitalization, the risk of breach of customer data and data channels has been growing. The demand for the prevention of identity theft solutions has been increasing in the region.
Furthermore, Asia-Pacific is one of the fastest-growing regions in terms of GDP, which induced expansion of the existing corporates and new startups. It created the demand for fast, secure, and paperless digital transactions across these growing corporates, increasing the need for secure identity verification solutions to prevent data breaches.
Moreover, countries like Singapore, one of Asia's most advanced nations in the digital banking segment, have the widest variety of digital offerings in Asia. Globally, Singapore has the second-highest inclination for digital banking. However, the growing number of multinational corporations in Singapore also makes the country vulnerable to cyber attacks.
In 2020, the Singaporean government launched the SingPass digital identity platform, which allows secure digital signatures for property caveats. This initiative is in line with the digital government blueprint target to enable citizens to complete between 90% and 95% of their e-government transactions without leaving their homes by 2023. This project is expected to allow for digital document signing on several platforms. It is also likely to extend into the corporate use ecosystem to benefit businesses in the private sector, particularly those in legal and financial services and telecommunications.
Key Topics Covered:
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.3 Assessment of Impact of COVID-19 on the Industry
5 MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Adoption of Solution Through Stringent Regulations and Need For Compliance
5.1.2 Adoption of BYOD Trends in Enterprises
5.2 Market Challenges
5.2.1 Budgetary Constraints During the Adoption of Identity Verification Solutions
5.3 Market View of Different Types of Solutions
5.3.1 Document/ID Verification
5.3.2 Digital/Electronic Identity Verification
6 MARKET SEGMENTATION
6.1 By Deployment Type
6.2 By End-user Industry
7 COMPETITIVE LANDSCAPE
7.1 Company Profiles
8 INVESTMENT ANALYSIS
9 FUTURE OUTLOOK OF THE MARKET
For more information about this report visit https://www.researchandmarkets.com/r/c49vig
View source version on businesswire.com: https://www.businesswire.com/news/home/20210916005915/en/
Laura Wood, Senior Press Manager
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