Digital Identity Verification checks will surpass 70bn by 2024, study shows

By Puja Sharma

A new study from Juniper Research, the foremost experts in fintech and payments markets, has found the number of digital identity verification checks will surpass 70 billion in 2024; growing 16% on the previous year’s number of 61 billion.

This growth is being driven by businesses adopting stronger biometric verification methods to combat account takeover and card-not-present fraud. Biometric verification methods are highly effective against these kinds of fraud, with liveness checks utilised to prevent spoofing.

The global digital identity management solutions market is segmented by type (identity verification & authentication solutions, digital KYC & onboarding solutions, zero trust security solutions, and digital ID wallet solutions), offering (hardware [scanners & readers, cameras, and smart cards, tokens], software, services [professional services, and managed services]), application (workforce identity management, customer identity management, citizen digital identity management, machine identity management, and other digital identity management applications [border control & fraud identification]), identity type(biometric solutions and non-biometric solutions).

Based on type, the global digital identity management solutions market is segmented into identity verification & authentication solutions, digital KYC & onboarding solutions, zero trust security solutions, and digital ID wallet solutions.

In 2023, the identity verification & authentication solutions segment is estimated to account for the largest share of the global digital identity management solutions market. The segment’s large share is attributed to the increasing government initiatives aimed at launching identity verification programs, efforts from leading digital identity management solution providers to launch biometric authentication solutions, and the growing demand for biometric authentication solutions. This segment is also expected to grow at the highest CAGR during the forecast period.

Digital-only Banks Catalysing Digital Identity Verification Adoption

Juniper Research forecasts banking will see the largest volume of checks, with 37 billion in 2024; equating to 53% of the global identity verification market. The report found continued popularity of digital-only banks is driving this growth, as these banks by their nature are reliant on digital identity verification checks; catalysing growth across the banking sector, as traditional banks play catch-up.

Identity verification vendors must partner with core banking system providers to enable services to be accessed easily, or they will lose out to better-connected competitors.

Facial Recognition Key for Customer Onboarding

Juniper Research highlighted the importance of passive checks, along with biometric verification, to strengthen security and improve user experience.

Report author Michael Greenwood added: “The real strength of facial recognition is the additional checks that can be added. Layering age estimation on top of facial recognition allows verification to be tailored to the client’s needs. Verification systems that can perform multiple checks in one step offer a significantly stronger user experience than legacy systems, and will become commonplace over the next few years.”