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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.
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 -
Other prominent vendors in the market include ACTAtek, BioEnable, BioID, BioLink Solutions, Hitachi,
4G Identity Solutions, Iris ID, Nuance Communications, and Suprema.
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.
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.
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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.
PART 01: Executive summary
PART 02: Scope of the report
PART 03: Market research methodology
PART 04: Introduction
PART 05: Market description
PART 06: Market landscape
PART 07: Technology life cycle
PART 08: Market developments
PART 09: Market segmentation by technology
PART 10: Geographical segmentation
PART 11: Market drivers
PART 12: Impact of drivers
PART 13: Market growth inhibitors
PART 14: Impact of drivers and challenges
PART 15: Market trends
PART 16: Five forces model
PART 17: Vendor landscape
PART 18: Appendix
PART 19: Explore Technavio
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