Prism Report Finds $40B Opportunity for Biometrics in Financial Services

A new report from Acuity Market Intelligence illustrates a remarkable growth opportunity for biometric technology in the financial services sector—and highlights some of the major players in this space.

The inaugural “Biometric Digital Identity Financial Services Prism Report” is an outgrowth of Acuity’s popular Prism Project, an ongoing research effort aimed at attaining a comprehensive view of the biometric digital identity landscape, encompassing key vendors, technologies, and market segments. The latest report is the first to hone Acuity’s research and data on a single sector, yielding a number of remarkable findings.

Global revenues from biometric digital identity solutions are projected to grow at a compound annual growth rate (CAGR) of 41.2 percent, reaching over $40 billion by 2028. Regionally, North America is expected to lead in revenue, growing from $1.181 billion in 2024 to $5,365 million in 2028, while the Asia-Pacific (APAC) region will dominate transaction volumes with nearly 50 percent market share, increasing from 68.641 billion transactions in 2024 to 294.972 billion in 2028.

Survey insights reveal that financial services organizations are motivated to adopt biometric digital identity technologies to enhance efficiency, automate processes, and improve fraud protection and risk mitigation. Key priorities include identity-based access, onboarding, authentication, and time tracking, with a strong focus on customer and employee authentication.

In addition to highlighting considerable demand and opportunities for growth, the report also identifies several challenges, including the need for digital transformation, heightened cybersecurity threats, stringent regulatory requirements, and evolving customer expectations. Biometric solutions are seen as crucial in addressing these challenges by streamlining processes through biometric verification and authentication, providing tools for regulatory compliance, and enhancing customer experience by reducing transaction friction.

Acuity Market Intelligence’s Principal Analyst, Maxine Most, leads The Prism Project. She previewed insights from the Financial Services Prism Report on a recent episode of the ID Talk podcast, where she emphasized that various players in the biometrics industry can realize greater market opportunities by adopting an attitude of cooperation and collaboration.

Access the full Biometric Digital Identity Financial Services Prism Report from the Prism Project website.

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May 30, 2024 – by Alex Perala