Regulatory mandates drive adoption of biometric technology in banking

DUBLIN, March 29, 2022 /PRNewswire/ — The “Biometrics for Banking and Financial Services – Global Market Trajectory and Analysis” report has been added to from ResearchAndMarkets.com offer.

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The Global Biometrics for Banking and Financial Services Market to Reach $8.9 billion by 2026

The global market for biometrics for banking and financial services estimated at US$4.4 billion in 2020, is expected to reach a revised size of US$8.9 billion by 2026, growing at a CAGR of 12.8% over the analysis period.

The turn of the next decade is expected to be more difficult for banks and financial institutions as security vulnerabilities become more sophisticated with advances in technology. Money laundering has become widespread and accounts for around 2-5% of global GDP.

One of the measures actively pursued by banks is biometrics, as the technology helps in creating a secure banking environment by reducing instances of identity fraud, establishing an audit trail of transactions and protecting financial datas. The shift to biometrics is also driven by the inability of traditional security measures such as PINs, passwords and tokens to provide effective protection, especially against the growing sophistication of intruder attacks.

Growing awareness among bank customers of the inadequacies of PINs and passwords to provide protection against sophisticated bank fraud and online threats is driving a high demand for strong security solutions such as those involving biometrics.

Additionally, the steady increase in the number of password hacks in recent times reflects inadequate security associated with the use of passwords as an access method. Driven by the growing need to provide protection against the growing instances of fraudulent transactions and identity theft, as well as the ever-increasing scale of fraud, banks are choosing to invest in strong authentication measures.

Fingerprint biometrics, one of the segments analyzed in the report, is expected to grow at a CAGR of 13.4% to reach US$6.2 billion at the end of the analysis period. After a thorough analysis of the business implications of the pandemic and induced economic crisis, Face Biometrics segment growth is readjusted to a revised CAGR of 11.6% for the next 7-year period. This segment currently accounts for a 22.8% share of the global biometrics market for banking and financial services.

The US market is estimated at $1 billion in 2021, when China is expected to reach $1.8 billion by 2026

The biometrics market for banking and financial services in the United States is estimated at 1 billion US dollars in 2021. The country currently accounts for a 22.84% share of the global market. Chinaworld’s second largest economy, is expected to reach an estimated market size of US$1.8 billion in 2026 with a CAGR of 17.1% over the analysis period.

Other notable geographic markets include Japan and Canada, each predicting growth of 7.6% and 9.9% respectively over the analysis period. In Europe, Germany is expected to grow around 10.9% CAGR while the rest of the European market (as defined in the study) will reach US$2.2 billion at the end of the analysis period.

The global market for biometrics in the BFSI sector continues to grow at a rapid pace thanks to the increasing attention of BFSI companies to provide the highest security to customer transactions through the use of biometrics-based authentication measures. . The use of biometric technology has the potential to reduce instances of fraud attributed to duplicate identity.

As consumer preferences change and new payment methods are introduced, banks are being forced to transition to the digital transformation of payment and card transactions. Advances in technology are also leading to an increase in the number of counterfeits and frauds, so the need for solutions that cannot be replicated is growing in importance in the banking and financial services industry.

In the financial sector, the increase in fraudulent access to accounts due to the growing use of mobile and online banking services reinforces the importance of access and identity management; information security governance; and the Information Security Roadmap as important security initiatives implemented for financial organizations. However, the increasing complexity of threats and the lack of adequate budgets complicate the effective implementation of such security programs.

Face Biometrics Segment to reach $1.9 billion by 2026

Facial biometrics uses unique facial characteristics to recognize and identify individuals. Facial recognition is the most effective form of human surveillance and includes measurement of eyes, nose, mouth and other facial features. The commercialization of facial recognition systems has increased due to an upsurge in the use of multimedia video technology.

This technology is typically used for applications such as surveillance, screening, law enforcement and law enforcement, including kiosks and booking stations. It could also be used in passport issuance, driver’s license and voter registration applications. The global facial biometrics market is estimated at US$996.6 million in 2020, and should reach US$1.9 billion by 2026, reflecting a compound annual growth rate of 11.6% over the analysis period.

Main topics covered:

I. METHODOLOGY

II. ABSTRACT

1. MARKET OVERVIEW

  • Impact of the COVID-19 pandemic and a looming global recession

  • Growing focus on identity amid the pandemic is driving changes in the field of biometrics

  • Contactless biometric technologies to make gains amid COVID-19 outbreak

  • An introduction to biometric technology

  • Types of biometric technologies

  • Biometrics: a growing solution to fight financial fraud and security breaches

  • Growing role of biometrics in banking and financial institutions

  • Application of biometric technology in the financial services sector

  • Global Market Outlook and Prospects

  • Fingerprint Scanning Technology Leads, Vein Recognition Gains Traction

  • Developing economies are spearheading the adoption of biometrics in the BFSI industry

  • Competetion

  • Recent market activity

2. FOCUS ON CERTAIN PLAYERS (Total 63 featured)

  • AllTrust Networks

  • Cyber-SIGN, Inc.

  • Fujitsu Frontech North America, Inc.

  • Global HID Company

  • IDEMIA

  • Ingenico Group SA

  • Nuance Communications, Inc.

  • Precise AB biometrics

  • Thales Group

  • Verint VoiceVault

3. MARKET TRENDS AND DRIVERS

  • Digitization of banking services and the need for stricter identification protocols to prevent security breaches are driving the market

  • Unreliability and Vulnerability of Traditional Authentication Methods Fuel Adoption of Biometric Solutions

  • Biometric Technology vs Conventional ID Authentication Methods

  • Biometrics enables banks to improve customer engagement levels

  • Growing Mobile Banking Adoption Drives Opportunities for Biometrics

  • The growing availability of biometric-enabled smartphones is transforming mobile banking

  • Expanding the Social Media Footprint of Financial Organizations: Opportunities for Biometric Technology

  • Biometric payment cards propel the adoption of biometrics in the BFSI sector

  • Biometric technology facilitates financial inclusion of the unbanked population

  • Biometrics-Based Authentication in ATMs on the Rise

  • Future financial transactions will be passwordless, contactless and frictionless

  • Amid the digital transformation of banking, behavioral biometrics are seeing growth

  • Dynamic Keystroke Authentication Overcomes Challenges of Conventional Authentication Methods

  • Multimodal biometrics is gaining ground

  • Multi-factor biometric authentication: providing greater transaction security

  • Banks’ digital onboarding initiatives present favorable prospects for biometric technologies

  • Voice biometrics continues to grow

  • Contactless iris biometric technology is poised for strong growth

  • Facial recognition is gaining popularity

  • Banks see more deployment of vein recognition biometrics

  • Dual biometrics is accepted by banks

  • Identity verification: a major growth area for the use of biometrics in banks

  • Access control: a potential area of ​​application

  • Fintech Banking solves the drawbacks of conventional banking

  • Cloud biometrics gaining popularity

  • Biometrics Innovations for the Banking and Financial Services Industry: A Review

  • Select innovations in the biometric banking space

  • Partnerships: agenda for BFSI

  • Regulatory mandates drive adoption of biometric technology in banking

  • Challenges Facing Banks in Implementing Biometric Security Systems

4. GLOBAL MARKET OUTLOOK

III. REGIONAL MARKET ANALYSIS

IV. COMPETETION

For more information on this report, visit https://www.researchandmarkets.com/r/fdc293

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