The remote onboarding boom is poised to continue well into the decade, according to a new report from Goode Intelligence.
The research firm predicts that the number of digital identity verification checks processed annually will rise from 1.1 billion this year to 3.8 billion by 2026. The value of the market will reach $17.2 billion by the end of that forecast period, reflecting a CAGR of 22 percent.
An important driver of this trend is the need for businesses and other organizations to meet Anti-Money Laundering and Know Your Customer regulations. And a key accelerator has been the COVID-19 pandemic, which has pushed various organizations’ activities into digital channels, resulting in a growing need for reliable solutions to remotely confirm the identities of customers, partners and affiliates.
Biometric technologies are a key factor and beneficiary of the trend. The past couple of years have seen booming demand for remote onboarding solutions that combine facial recognition with document reading to match end users to their IDs, thereby confirming their identity. Revenues for such vendors have increased by as much as 300 percent year-over-year amid such demand.
Accordingly, some of the leading companies highlighted in the Goode Intelligence report are selfie onboarding specialists, including FaceTec, iProov, and Yoti.
In a statement, Goode Intelligence CEO and report author Alan Goode asserted that COVID-19 has accelerated the adoption of remote identity verification “by a factor of ten” and has resulted in such technologies being embraced even in areas that have traditionally ignored such solutions.
“This is a very buoyant market with hundreds of millions of dollars of investment and intense activity from an M&A point of view,” he said. “It is no exaggeration to say that this industry is currently running red hot with close to $1bn of investment in the first six months of 2021 with signs that this is not abating for the remainder of 2021 and into 2022.”
Beyond the major adoption trends outlined, the report – entitled “Identity Verification (IDV) Market & Technology Analysis & Forecasts 2021-2026” – also delves into the growing importance of liveness detection technologies that can guard against presentation attacks, and the application of remote identity verification technology in COVID-19 health passes and vaccination passports.
The full report is available from Goode Intelligence.
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October 14, 2021 – by Alex Perala
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