Global Biometrics Market in BFSI Sector 2016-2020
Overview of the biometrics market in the BFSI sector
According to the market research analysts at Technavio, the global biometrics market in the BFSI sector is anticipated to witness impressive growth and will post a staggering CAGR of close to 20% over the forecast period. The BFSI sector is increasingly focusing on providing the highest level of security to their customers by reducing identity duplication. With changing consumer preferences and introduction of new payment methods, it has become imperative for banks to transform the payments and card (PCI) industry digitally. This has led to the introduction of new payment methods such as PIN cards, mobile wallets, and EMV chips. With the advances in technology, the number of frauds and forgeries are also increasing, thereby increasing the need for a solution which is difficult to duplicate. Several banks are adopting biometrics to prevent fraud and protect customer’s information from being compromised. Furthermore, the rise in the number of threats from hackers and malware has led the BFSI sector to replace passwords with biometric authentication options such as iris scans, fingerprint identification, vein recognition, and voice recognition solutions.
One of the recent trends gaining significant traction in the market is the increasing adoption of vein recognition in ATMs and POS terminals. Banks and financial institutions in emerging economies like India, China, Mexico, and Brazil has readily adopting vein recognition biometrics to verify the identity of their customers. Moreover, vein recognition is accurate and user-friendly, leading to its augmented adoption over the coming years. The major application areas of vein recognition biometrics in the BFSI sector includes door security, log-in management for PCs, ATMs, POS terminals, and banking transactions. Increasing incidents of fraudulent withdrawal of money using fake ids have led to massive losses for the BFSI sector. For example, Barclays Bank implemented vein scanner authentication for the UK corporate banking customers so they can access their online bank accounts and authorize payments within seconds without PIN, passwords, and other authentication codes.
Competitive landscape and key vendors
The global biometrics market in the BFSI sector is highly fragmented due to the presence of many small regional vendors and large multinational vendors. As the global players are increasing their market presence, the regional vendors are finding it increasingly difficult to compete with them. During the forecast period, established vendors are likely to acquire the niche biometrics vendors to expand their product portfolios and boost their market shares. The competition in this market is likely to intensify further in the coming years with an increase in the product and service extensions, technological innovations, and mergers and acquisitions (M&A).
Key vendors in this market are -
- Cross Match Technologies
- HID Global
Other prominent vendors in the market include ACTAtek, BioEnable, BioID, BioLink Solutions, Hitachi,
4G Identity Solutions, Iris ID, Nuance Communications, and Suprema.
Segmentation by technology and analysis of the biometrics market in the BFSI sector
- Voice recognition
- Vein recognition
- Iris recognition
- Facial recognition
- Fingerprint identification
During 2015, the fingerprint identification segment is the highest revenue generating segment in the global biometrics market in the BFSI sector and will continue to lead the market until the end of 2020. The fingerprint identification technology is widely accepted in the BFSI sector for physical and logical access control, ATMs, and mobile banking because of the low cost of hardware systems and fingerprint readers and modules. However, the increasing preference for vein recognition will negatively affect this segment’s growth over the coming years.
Geographical segmentation and analysis of the biometrics market in the BFSI sector
- North America
- South America
In terms of geography, North America accounted for the largest share of the market and is likely to dominate the market until the end of 2020. Factors such as increased awareness among the organizations in the BFSI sector about the benefits of deployment of biometrics and the presence of many large financial institutions and companies in the region will contribute to this market’s growth in the region.
Key questions answered in the report include
- What will the market size and the growth rate be in 2020?
- What are the key factors driving the global biometrics market in the BFSI sector?
- What are the key market trends impacting the growth of the global biometrics market in the BFSI sector?
- What are the challenges to market growth?
- Who are the key vendors in the global biometrics market in the BFSI sector?
- What are the market opportunities and threats faced by the vendors in the global biometrics market in the BFSI sector?
- What are the trending factors influencing the market shares of APAC, Europe, MEA, North America, and South America?
- What are the key outcomes of the five forces analysis of the global biometrics market in the BFSI sector?
Technavio also offers customization on reports based on specific client requirement.
- Biometrics Market in North America 2016-2020
- Global Biometric Sensors Market 2016-2020
- Global Vein Recognition Biometrics Market in BFSI Sector 2015-2019
- Global Voice Recognition Biometrics Market 2015-2019
The growing vulnerability and rising costs of traditional security solutions have prompted the BFSI sector to opt for biometric based identification solutions. Besides customer-facing, BFSI sector is focusing on the deployment of biometrics to control access to the safeguard building and major operational areas including data centers that could be a source of data theft. Owing to the rapid increase in cases of security breaches, identity theft, and other fraudulent activities., there is growing need for highly reliable and accessible personal authentication and identification systems in the BFSI sector. Biometric solutions in BFSI sector can monitor and track the behavioral and physiological characteristics of an individual, and are considered as apt security solutions because they eliminate the requirement of manual inputs, vulnerable passwords, and loopholes in a bank data security system. The emergence of mobile biometric payments is the latest development in the BFSI sector, which will augment the downloads of several mobile banking apps that support biometrics for customer authentication and transaction verification.
The report, global biometrics market in BFSI Sector, is part of Technavio’s ICT research portfolio. This portfolio provides a comprehensive market analysis along with the market share, market sizing, and market segmentations covering areas such as automatic identification system, cloud computing, data center, enterprise application, IT security, ITO and BPO, and product lifecycle management. These market research reports provide a perspective on the various market opportunities and market threats along with the key trends that would influence the market growth during the forecast period. It presents insights into the changing competitive landscape and a detailed profiling and market analysis of the vendors. Also covered in the research are the key regions or countries that would have an impact on the market during the assessment years.