Digital Identity Verification To Surpass 70 Bn Mark In 2024

A recent study has unveiled that the world is witnessing an unprecedented surge in digital identity verification checks. Predictions indicate that these checks will surpass a staggering 70 billion in 2024, marking a 16 per cent increase from the preceding year's figure of 61 billion.

This surge in digital identity verification is being primarily fueled by businesses adopting more robust and sophisticated biometric verification methods. These methods are increasingly becoming the weapon of choice in the fight against account takeover and card-not-present fraud. Among these methods, liveness checks, designed to thwart spoofing attempts, have emerged as a particularly effective means of safeguarding online transactions.

In this burgeoning landscape, the banking sector is leading the charge. In 2024, the banking industry is projected to account for a substantial 53 per cent of the global identity verification market, with a staggering 37 billion checks. What's driving this phenomenal growth? The answer lies in the ever-increasing popularity of digital-only banks, often referred to as neobanks, noted the Juniper Research report.

Digital-only banks, by their very nature, are heavily reliant on digital identity verification checks. This reliance on robust identity authentication processes is catalysing a revolution in the banking sector. These innovative banks are rewriting the rules of the game, prompting traditional banks to play catch-up in this rapidly evolving arena.

However, there's a critical element to success in this dynamic environment - partnerships. The report underscores the vital importance of identity verification vendors collaborating with core banking system providers. Seamless integration with banking systems is the linchpin for making identity verification services easily accessible. Failing to forge such strategic alliances may lead to losing ground to competitors who have harnessed superior connectivity.