Video KYC Market Size, Share, Growth, and Industry Analysis, By Type (Software, and Service), By Application (Banks, Financial Institutions, E-payment Service Providers, Telecom Companies, Government Entities, Insurance Companies, and Others) Regional Forecast to 2031

Updated On: 08 April 2024

Video KYC Market REPORT OVERVIEW

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The global Video KYC Market size was in USD 186.45 million 2021. As per our research, the Video KYC Market is expected to reach USD 437.95 million by 2027, exhibiting a CAGR of 15.29% during the forecast period. The COVID-19 pandemic has been unprecedented and staggering, with experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden decline in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The Video KYC is an advanced technology-driven solution enabling organizations to perform remote identity authentication and verification, ensuring full adherence to regulatory standards. This innovative system harnesses video communication technology to facilitate a virtual, face-to-face encounter between customers and designated institution representatives, typically compliance officers or agents. Within this virtual interaction, customers are obligated to furnish a range of identity documents and pertinent information, all of which undergo real-time validation.

COVID-19 Impact: Accelerated Adoption among Population to Fuel Market Growth

Amid lockdowns and social distancing measures imposed during the COVID-19 pandemic, numerous businesses and financial institutions found themselves compelled to swiftly embrace digital solutions. This swift adoption, including the adoption of Video KYC, resulted in an unprecedented uptick in the demand for Video KYC services.

The abrupt increase in the need for Video KYC services created substantial operational strains for service providers. Balancing the delivery of quality and security while coping with this heightened demand proved to be a demanding task.

LATEST TRENDS

"Increased Regulatory Acceptance, and AI and Machine Learning Integration to Fuel Market Growth "

Traditional Video KYC methods often necessitated customers physically visiting a branch or office to undergo identity verification. However, the COVID-19 pandemic hastened the demand for remote alternatives. Regulatory bodies recognized the pressing need to facilitate business continuity while upholding anti-money laundering (AML) and customer identification regulations. The global shift toward heightened digitalization was already underway, and the pandemic accelerated this transformation. Regulators began acknowledging that remote identity verification, when executed with security and precision, could be as effective as in-person verification. This realization was in harmony with broader digital transformation initiatives. Video KYC solution providers were progressively incorporating artificial intelligence (AI) and machine learning (ML) advancements into their offerings. These technological enhancements resulted in heightened precision in facial recognition, more robust document validation, and improved fraud detection capabilities, thereby bolstering the overall trustworthiness of the verification process.

SEGMENTATION

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By Type

Based on Type Video KYC Market is classified as Software, and Service.

By Application

Based on Application the Video KYC Market is classified as Banks, Financial Institutions, E-payment Service Providers, Telecom Companies, Government Entities, Insurance Companies, and Others.

DRIVING FACTORS

Pandemic-Induced Remote Operations to Fuel Market Growth 

The COVID-19 pandemic catalyzed the Video KYC market growth for remote and contactless processes. In light of limited physical interactions, businesses actively pursued digital solutions such as Video KYC to sustain and facilitate customer onboarding and identity verification processes.

Regulatory Compliance to Stimulate Market Progress

Rigorous regulations, including Anti-Money Laundering (AML) and Know Your Customer (KYC) mandates, require comprehensive customer identity validation. Video KYC offers organizations a dependable and compliant approach to fulfill these regulatory mandates.

RESTRAINING FACTORS

"Limited Internet Access to Harm Market Growth "

In areas where internet connectivity is weak or high-speed internet access is limited, carrying out video-based KYC procedures can be problematic. This constraint has the potential to disqualify potential customers and impede the acceptance of Video KYC in specific regions.

REGIONAL INSIGHTS

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"North America has heightened emphasis on data security to Drive Market Share  "

In North America, notably in the United States and Canada, has captured a significant Video KYC market share. This is attributed to the region's robust financial industry, rigorous regulatory landscape, and tech-savvy populace, all of which have spurred the uptake of Video KYC in sectors such as banking, insurance, and fintech. The heightened emphasis on data security and adherence to AML and KYC regulations has further fueled the demand for dependable Video KYC solutions.

KEY INDUSTRY PLAYERS

"Multitude of companies that played a pivotal role in expansion of Video KYC "

In the Video KYC market, numerous prominent industry leaders provide Video KYC solutions and services. Among them is Veriff, a renowned global identity verification provider celebrated for its Video KYC solutions. Veriff boasts a diverse array of verification methods, encompassing video-based identity verification, among others.

List of Market Players Profiled

• SignDesk (Bangalore)
• Shufti Pro (U.K.)
• Ameyo (India)
• Onfido (England)
• Signicat (Norway)

REPORT COVERAGE

The future demand for the Video KYC Market is covered in this study. The Research report includes the Accelerated Adoption due to the Covid-19 Impact. The report covers the latest trends in Increased Regulatory Acceptance. The paper includes a segmentation of the Video KYC Market. The research paper includes the driving factors that are Pandemic-Induced Remote Operations to Fuel Market Growth. The report also covers information on Regional Insights where the region which has emerged leading market for Video KYC.