Biometrics for Banking and Financial Services

Biometrics for Banking and Financial Services

Global Biometrics for Banking and Financial Services Market to Reach US$19.5 Billion by 2030

The global market for Biometrics for Banking and Financial Services estimated at US$7.2 Billion in the year 2023, is expected to reach US$19.5 Billion by 2030, growing at a CAGR of 15.3% over the analysis period 2023-2030. Fingerprint Biometrics, one of the segments analyzed in the report, is expected to record a 16.0% CAGR and reach US$12.0 Billion by the end of the analysis period. Growth in the Face Biometrics segment is estimated at 13.5% CAGR over the analysis period.

The U.S. Market is Estimated at US$1.2 Billion While China is Forecast to Grow at 18.9% CAGR

The Biometrics for Banking and Financial Services market in the U.S. is estimated at US$1.2 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$3.7 Billion by the year 2030 trailing a CAGR of 18.9% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 8.6% and 11.0% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 12.2% CAGR.

Global Biometrics for Banking and Financial Services Market - Key Trends & Drivers Summarized

Biometrics for banking and financial services have become a critical component in enhancing security and improving customer experience. Biometric technologies, which include fingerprint scanning, facial recognition, iris scanning, and voice recognition, provide a high level of security by verifying a person`s identity based on their unique physical or behavioral traits. In the banking sector, biometrics are used for a variety of applications, such as customer authentication during online and mobile banking transactions, securing access to physical branches, and streamlining customer onboarding processes. By replacing traditional password-based systems with biometric authentication, banks can significantly reduce the risk of fraud and identity theft, ensuring that only authorized individuals can access sensitive financial information and services.

Technological advancements have significantly enhanced the accuracy, reliability, and accessibility of biometric systems in banking. Modern biometric solutions leverage artificial intelligence (AI) and machine learning algorithms to improve the precision of identity verification processes. For example, AI-driven facial recognition systems can detect and analyze facial features in real-time, even under challenging conditions such as poor lighting or changes in appearance. Additionally, the integration of biometric authentication with mobile devices has made it more convenient for customers to access banking services securely from anywhere. Multi-factor authentication, which combines biometrics with other security measures such as OTPs (one-time passwords) and behavioral analytics, further enhances the security framework, making it increasingly difficult for malicious actors to compromise financial systems.

The growth in the biometrics for banking and financial services market is driven by several factors. The increasing incidence of cyber threats and fraud in the financial sector has necessitated the adoption of more robust security measures, with biometrics emerging as a preferred solution due to their high level of accuracy and difficulty to replicate. The growing instances of identity thefts, security breaches and other frauds are leading to the increasing need for reliable personal identification and authentication systems for the BFSI sector. Regulatory mandates and compliance standards related to data protection and identity verification are also pushing financial institutions to implement biometric technologies. Additionally, the rise of digital banking and the growing preference for seamless and secure online transactions are fueling demand for biometric solutions. Technological advancements in AI and machine learning are enhancing the capabilities of biometric systems, making them more reliable and user-friendly. Furthermore, the global push towards financial inclusion is driving the adoption of biometrics to facilitate access to banking services for unbanked and underbanked populations. These factors, coupled with continuous innovation and the need for enhanced customer experience, are expected to drive sustained growth in the biometrics for banking and financial services market in the coming years.

Select Competitors (Total 63 Featured) -

• Fujitsu Ltd.
• Bioenable Technologies Pvt., Ltd.
• Fujitsu Frontech Ltd.
• Cognitec Systems GmbH
• ASSA ABLOY AB
• Daon, Inc.
• 4G Identity Solutions Pvt., Ltd.
• BIO-key International, Inc.
• Dermalog Identification Systems GmbH
• Fulcrum Biometrics LLC
• BioID AG
• Aware, Inc.
• Facephi Biometria SA
• Bayometric
• Fingo

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