Biometrics for Banking and Financial Services Market Size, Share, Growth, and Industry Analysis, By Type (Face Biometrics, Voice Biometrics, Fingerprint Biometrics, Iris Biometric, Hand Vein Biometrics, and Others), By Application (Mobile Banking, Electronic Banking, and Others), Regional Insights, and Forecast To 2031

Updated On: 01 April 2024

Biometrics For Banking And Financial Services Market Report Overview

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The global biometric for banking and financial services market size was USD 5027.4 million in 2021 and is projected to touch USD 14726.65 million by 2031, exhibiting a CAGR of 11.2% during the forecast period.

Biometrics is one of the strategies that banks are actively pursuing since the technology helps to create a secure banking environment by lowering the incidence of identity fraud, generating a transaction audit trail, and safeguarding financial data. The move towards biometrics is also being fueled by the ineffectiveness of more conventional security mechanisms like PINs, passwords, and tokens, particularly in the face of increasingly sophisticated hacker attacks. There is a considerable need for robust security solutions, such as those incorporating biometrics, as a result of clients of banking services becoming more and more aware of the limitations of PINs and passwords as a form of protection against sophisticated bank fraud and cyber threats.

Additionally, the recent constant rise in password intrusions is a reflection of the lax security surrounding the usage of passwords as an access method. Banks are choosing to invest in robust authentication procedures in response to the growing requirement to provide security against the rising incidences of fraudulent transactions and identity theft, as well as the fraud's ever-expanding scope. It has been segregated into various types, such as voice biometric, face biometric, fingerprint biometrics, hand vein biometrics, and others. 

COVID-19 Impact: No Halt On Banks During the Lockdown Boosted Market Growth

The global COVID-19 pandemic has been unprecedented and staggering, with biometric for banking and financial services experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden spike in CAGR is attributable to demand returning to pre-pandemic levels once the pandemic is over.

The pandemic outbreak positively impacted the growth of the cyber security industry due to the closure of job crunches, manufacturing units, data breaches, and decreased supply chain affected the growth of the market. Various small and medium-sized businesses witnessed a rise in demand for cyber security during the COVID-19 outbreak. The demand for cyber security solutions increased in the manufacturing, healthcare, and government sectors due to rising concerns for data security. The companies launched security forces to keep their personal information and other data secured. The banks were still open for transactions, and the biometrics were done from home, which boosted the market growth.

LATEST TRENDS

"Integration of Technology to Propel Market Growth"

The continuous improvement in global internet access and other technical developments, including the Internet of Things (IoT), 5G, block chain, and Artificial Intelligence (AI), cloud services, among others, have considerably accelerated economic growth. Most of the population throughout the world was actively using the internet. Additionally, the other changes to economies around the world, the development of the ICT industry, has greatly contributed to increases in GDP, worker productivity, and R&D spending. A further factor in the development and growth of the economy is the creation of services and goods in the ICT sector. These factors are anticipated to propel biometrics for banking and financial services market growth.

Biometrics For Banking And Financial Services Market Segmentation

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• By Type Analysis

By type, the market is segmented into voice biometrics, face biometrics, iris biometrics, fingerprint biometrics, hand vein biometrics, and others.

Face biometrics is anticipated to propel major growth in the biometric for banking and finance services market accredited to the high commercialization of face recognition systems led by the expanding use of multimedia video technology. Additionally, face biometrics is considered one of the most successful forms of biometrics which involve the nose, ear, mouth, eyes, and facial features.

• By Application Analysis

Based on application, the biometric for banking and financial services market is classified into electronic banking, mobile banking, and others. 

DRIVING FACTORS

"Rising Privacy Concerns to Boost Service Adoption"

Businesses in various industries where security is still of utmost importance are making significant investments in their security systems with an emphasis on access control systems and financial, and banking sectors. Law enforcement, government, and the military are among the industries that employ this technology extensively. Additionally, the global development of these systems was accelerated by the urgent need to bolster national security. Various nations employ iris recognition for a variety of purposes, including automated border crossings without the need for a passport. The biometric-as-a-service solution can be used not only to connect disparate identification information across the organization but also to enable the integration of various biometric types according to the demands and risk tolerance of a given business. The rising need for biometrics for banking and financial services owing to the rising security concern is expected to propel biometric for banking and financial services market growth.

"Expanding Number of Banking and Finance Sectors to Augment Market Growth"

The consistently growing population is leading to the development of biometric for banking and finance services. The growing population ultimately leads to an increase in the number of working professionals coupled with their rising income. This factor is expected to aid biometrics for banking and finance services market growth in the forecast period. Additionally, this service is cost-effective which encourages various banking and financial sectors to adopt biometrics for banking and financial services. The steady deployment and integration of incorporate biometric capabilities in corporate systems is also forecasted to gain traction in the global market of biometric for banking and finance services. 

RESTRAINING FACTORS

"Lack of Skilled Professionals May Impede Market Growth"

The need for skilled professionals to operate biometric for banking and finance services is expected to limit the growth of the biometric for banking and finance services market. The need for skilled professional’s challenges small banking and financial services and resists the adoption of services for them. These factors are anticipated to retard market growth. 

Biometrics For Banking And Financial Services Market Regional Insights

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"Asia Pacific to Lead Market Due to Rising Emphasis On Security of Customers Transactions"

Asia Pacific is expected to hold a major part of the biometric for banking and financial services market share backed by the growing emphasis of BFSI companies on offering the highest security to their customer's transactions with the help of biometrics. Additionally, the use of online banking services associated with smartphones is also anticipated to foster market growth.

North America is forecasted to show a significant market share due to the growing inflow of investments in data and cyber security coupled with the presence of key market players.

KEY INDUSTRY PLAYERS

"Key Players Focusing On Innovative Technology Development to Grow in Market"

Businesses are working on developing new technology to offer more easy ways to increase product portfolio. Companies also use innovative practices and techniques to create new technologies. Companies are focused on acquisitions and investments to increase sales. Because there are so many large companies in the market, it is competitive. Other traits include having a sizable global consumer base and operating through specialized distribution networks. The leading companies offer new items in an effort to increase their market share.

List of Market Players Profiled

• 3M (U.S.)
• AllTrust Networks (U.S.)
• Cross Match Technologies, Inc. (U.S.)
• Cyber-SIGN, Inc. (Japan)
• Digital Persona, Inc. (U.S.)
• Fujitsu Frontech North America, Inc. (U.S.)
• Ingenico SA (France)
• Lumidigm, Inc. (U.S.)
• Morpho (France)
• Nuance Communications, Inc. (U.S.)
• Precise Biometrics AB (Sweden)
• Suprema, Inc. (U.S.)
• VoiceVault, Inc. (U.S.)
• Voice Commerce Ltd. (U.K.)

INDUSTRY DEVELOPMENT

• September 2021- Jordan Kuwait Bank chose selected Thales to supply biometric payment cards to initiate contactless EMV transactions. These cards will be distributed to elite customers, who will enroll in biometrics from home.

REPORT COVERAGE

An overview of the product is provided along with the product description. Numerous industry elements are included in the research.

• The pandemic's aftereffects and the subsequent lockdown.
• The market's most recent trend is currently fueling expansion.
• The factors are most likely to stimulate market growth.
• The reasons the market is expected to grow more slowly.
• A comprehensive regional analysis of the market is conducted.
• Significant players and their business offices are also covered in the article.