Signature Verification Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Signature Verification Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Global Signature Verification Market is expected to register a CAGR of 25.3% during the forecast period (2021 - 2026). Several organizations are shifting toward remote working models due to the COVID-19 pandemic and consequent lockdowns imposed by governments across various countries. As a result, they are adopting electronic signing, thus, increasing the demand for signature verification software for identifying and authenticating business transactions within legal frameworks.

Key Highlights

• Signatures are uniquely used for verification by entities, such as governments, businesses, and financial organizations, for authorizing transactions and documents. They provide an authentication method, which uses the dynamic feature of a person's handwritten signature and its characteristics to authenticate their identity.
• In recent years, biometric signature verification (BSV) has renewed interest in line with the increasing need for security and individual verification and authentication across banks, offices, institutions, or other commercial organizations. Offline signature processing is typically used in office automation systems that validate cheques, credit cards, contracts, and historical documents. Also, dynamic signature verification (DSV) that compares signatures based on various parameters, such as velocity, acceleration, pressure, and geometrical shape, of the biometric sample is gaining traction worldwide and is expected to hold a significant market growth in coming years.
• Moreover, most governments worldwide, especially in the United States and EU nations, have enacted legislation recognizing digital signatures or electronic signatures as equivalent to handwritten signatures. Suppose produced in line with specific requirements (for instance, the EU Directive on Electronic Signature 1999/93/Ec of the European Parliament and Council).
• Many market vendors in the industry are marking workflows digitally and going for acquisition for strengthening business and launching new products. For instance, DocuSign acquired Liveoak technologies for USD 38 million. Liveoak combines live video, collaborative tools, and identity verification to allow parties to obtain notarized permission.
• Further, regarding the verification of e-signatures, complexities increase even further. For instance, there are multiple ways of applying countersignatures, numerous signatures and document formats, determining whether the signer was authorized to sign, historical verification of signatures, etc.

Key Market TrendsHealthcare Industry is Expected to Hold Significant Market Share

• Healthcare is a heavily regulated industry that requires a lot of documentation. It is an industry where verification by signature is a legal requirement. The increasing transaction frauds and security breaches in the sector are propelling the demand for signature verification solutions that help prevent the loss of imperative data.
• According to the 2020 Healthcare Data Breach Report, healthcare data breaches of 500 or more records were reported at a rate of more than 1.76 per day. 2020 saw 642 significant data breaches reported by healthcare providers, health plans, healthcare clearinghouses, and business associates of those entities, 25% more than what was recorded in 2019.
• The healthcare sector can use e-signatures legally in compliance with regional regulations, such as the Healthcare Insurance Portability Accountability Act (HIPAA) and the Uniform Electronic Transactions Act.
• There is also a growing need to create a good healthcare infrastructure to boost patient care, minimize expenses, and prevent loss or misplacement of equipment or records while eliminating any possible errors. The use of e-signature solutions helps in applications, such as client documentation, medical process approvals, medical bill payment, signing medical records, issuing medical receipts, and improving patient satisfaction.
• Further, Vendors are partnering to launch e-signature and document management solutions specific to the healthcare industry, thus driving the market for signature verification. In November 2020, Cologne-based m.Doc GmbH, smart health, and Validated ID, digital an identification provider, announced that they had developed a digital signature integration to simplify analog signature processes.

North America Accounts For the Largest Market Share

• United States has exhaustively used digital signature verification in various sectors, including banking and financial institutes, healthcare, BPO services, and government offices. For their increased usage, the government has implemented multiple rules and regulations to monitor the correct use of digital signature verification.
• The country witnessed exceptionally high use of the software during the 2020 elections. The pandemic restricted the movement of millions of voters, which compelled the government to encourage the voters to adopt digital voting. This directly impacted the use of digital signature software, prompting government collaboration with signature verification developer companies.
• Moreover, the signature verification technology became the normalized trend in the U.S. elections and is expected to see increased implementation with advancements in terms of accuracy in the coming years. The Cybersecurity and Infrastructure Security Agency (CISA) Elections Infrastructure Government Coordinating Council and Sector Coordinating Council's Joint COVID Working Group announced clear guidelines to monitor and integrate the automatic signature verification procedure for the 2020 elections. Companies such as Parascript offer automated signature verification software that supported the U.S. elections in 2020.
• The Government of Canada has also made the use of digital signatures legally enforceable. This has allowed various companies to adopt signature verification platforms increasingly. After the Covid-19 pandemic hit the country, the government set out different considerations for the signature verification software solutions aligned with the Personal Information Protection and Electronic Documents Act.
• Further, Canada's Digital Identification and Authentication Council facilitate digital identity and document verification for commerce, industry, governments, and citizens. The country is marked with increased adoption of digital identity verification solutions amongst financial institutions. Software usage amongst banks in Canada is becoming a trend. The Royal Bank of Canada was the first bank to implement digital identity verification in March 2020 and had adopted signature verification technology much earlier. The Royal Bank of Canada serves 17 million customers in Canada, the U.S., and 34 other countries and rolled out digital identity verification for account opening, which is available at the bank branches and remotely via mobile and its website.

Competitive Landscape

The signature verification market is consolidated as the significant share of the market is occupied by top players. Moreover, the new player finds it difficult to enter the market due to the strong dominance of existing players. Some key players include Biometric Signature ID (J C Lads Corporation), CERTIFY Global Inc., Ascertia Ltd., Kofax Inc., Entrust Datacard Corporation, Odyssey Technologies Limited, Scriptel Corporation, among others.

• May 2021 - Jumiocollaborated with Veridiumproviding enhanced security for eKYC(Know Your Customer) use cases, allowing businesses to employ advanced facial, document, and fingerprint biometric recognition capabilities for identity verification.
• February 2021 - Parascript launched FormXtra.AI 8.0. The solution features NLP-based Full-page Handwriting Transcription and automates business document processes with remarkable precision, reduces human data entry, and reduces time-consuming configuration and production management responsibilities.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Parascript LLC
Ascertia Ltd
Jumio Corp.
Ekata Inc.
IBM Corporation
SutiSoft Inc.
Acuant Inc.
Mitek Systems Inc.
CERTIFY Global Inc.
Scriptel Corporation
iSign Solutions Inc.
Veriff

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