A recent study conducted by a leading authority in the fintech and payments sectors, reveals a significant surge in the use of digital identity verification checks, with an anticipated total exceeding 70 billion in 2024. This represents a remarkable 16% increase from the preceding year’s figure of 61 billion.
The growing demand for these checks is attributed to businesses’ adoption of more robust biometric verification techniques to counteract account takeover and card-not-present fraud. Biometric verification methods have proven to be highly effective in combating these forms of fraud, with the integration of liveness checks as an essential tool in thwarting spoofing attempts.
The researcher’s forecast suggests that the banking sector will dominate this surge, accounting for a staggering 37 billion checks in 2024, constituting 53% of the global identity verification market. The continued popularity of digital-only banks is a driving force behind this growth. These banks inherently rely on digital identity verification checks, prompting a surge in adoption throughout the banking industry as traditional banks endeavour to catch up.
For identity verification vendors to remain competitive, they must establish partnerships with core banking system providers to facilitate seamless access to their services. Failure to do so may result in a loss of market share to more well-connected competitors. The research team underscores the significance of passive checks and biometric verification in enhancing security and improving the user experience. Researchers emphasize, “Facial recognition’s true strength lies in its ability to incorporate additional checks. The incorporation of age estimation alongside facial recognition enables verification to be customized according to the client’s requirements. Verification systems capable of conducting multiple checks in a single step offer a considerably enhanced user experience compared to legacy systems and are expected to become standard practice in the coming years.”