The turning point of the next decade is expected to be more difficult for banks and financial institutions, as security breaches become more and more sophisticated with technological advancements. Money laundering has become widespread and represents around 2 to 5% of global GDP. One of the measures actively pursued by banks is biometrics, as the technology helps create a secure banking environment by reducing instances of identity fraud, establishing an audit trail of transactions, and protecting data. financial datas.
The move towards biometrics is also driven by the inability of traditional security measures such as PINs, passwords and tokens to offer effective protection, especially against the increasing sophistication of intruder attacks.
The growing awareness among bank customers of the inadequacy of PINs and passwords to provide protection against sophisticated bank fraud and online threats is driving a strong demand for robust security solutions such as those involving biometrics.
In addition, the steady increase in the number of password hacks in recent times reflects inadequate security associated with the use of passwords as a method of access. Driven by the growing need to offer protection against the growing cases of fraudulent transactions and identity theft as well as the ever-increasing scale of fraud, banks are choosing to invest in strong authentication measures.
Amid COVID-19 Crisis, Global Biometrics Market for Banking and Financial Services, Estimated at $ 4.4 Billion in 2020, Expected to Reach Revised Size of $ 8.9 Billion by 2026 , with a CAGR of 12.8% over the analysis period. , according to Global Industry Analysts. Fingerprint biometrics, one of the segments analyzed in the report, is expected to grow at a CAGR of 13.4% to $ 6.2 billion by the end of the analysis period.
After a thorough analysis of the business implications of the pandemic and the induced economic crisis, the growth of the facial biometrics segment is readjusted to a revised CAGR of 11.6% for the next 7-year period. This segment currently represents a 22.8% share of the global biometrics market for banking and financial services.
Biometrics Market for Banking and Financial Services by Region
The biometrics market for banking and financial services in the United States is estimated at $ 1 billion in 2021. The country currently accounts for a 22.84% share of the global market. China, the world’s second-largest economy, is expected to reach an estimated market size of $ 1.8 billion in 2026, behind a CAGR of 17.1% during the analysis period.
Other geographies of interest include Japan and Canada, each forecasting growth of 7.6% and 9.9% respectively over the period of analysis. In Europe, Germany is expected to grow at a CAGR of around 10.9% while the rest of the European market (as defined in the study) will reach $ 2.2 billion by the end of the period. ‘analysis.
The global biometrics market in the BFSI sector continues to grow at a steady pace, driven by the growing desire of BFSI companies to offer the highest security to customer transactions through the use of authentication measures based on the biometrics. The use of biometric technology has the potential to reduce fraud cases attributed to identity duplication.
As consumer preferences change and new payment methods are introduced, banks are forced to move towards the digital transformation of payment and card transactions. Advances in technology are also leading to an increase in the number of counterfeits and frauds, making the need for a solution that cannot be replicated is growing in importance in the banking and financial services industry.
In the financial sector, the increase in fraudulent account access due to the increasing use of mobile and online banking services reinforces the importance of access and identity management; information security governance; and information security roadmap as important implemented security initiatives for financial organizations. However, the increasing complexity of threats and the lack of adequate budgets call into question the effective implementation of such security programs.
Facial biometrics segment to reach $ 1.9 billion by 2026
Facial biometrics uses unique facial characteristics to recognize and identify individuals. Facial recognition is the most effective form of human monitoring and it includes measuring the eyes, nose, mouth, and other facial features.
The commercialization of facial recognition systems has increased due to an increase in the use of multimedia video technology. This technology is typically used for applications such as surveillance, filtering, law enforcement, and criminal justice that include kiosks and reservation stations. It could also be used in passport issuance applications, driver’s licenses and voter registration.
The global facial biometrics market is estimated at $ 996.6 million in 2020 and is expected to reach $ 1.9 billion by 2026, reflecting a compound annual growth rate of 11.6% over the analysis period . Asia-Pacific is the largest regional market for the facial segment, accounting for 23.1% of global sales in 2020.
China is on track to register the fastest compound annual growth rate of 15.2% during the analysis period, reaching $ 483.1 million at the end of the analysis period.