Biometrics for Banking and Financial Services Market size was valued at USD 6.04 billion in 2023 and is anticipated to reach USD 24.29 billion by the end of 2036, registering around 11.3% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of biometrics for banking and financial services is assessed at USD 6.59 billion.
The growth of the market can be attributed primarily to the growing need to offer protection against rising cases of identity theft and fraudulent transactions across the globe. In 2018, more than USD 24 billion was lost worldwide as a result of payment card fraud. Whereas, the same year, identity theft made up for about 15 percent of the reported fraud. Along with these, government initiatives to prevent banking frauds including deployment of information security roadmap for financial organizations, which is expected to lead to an increasing demand for solutions involving biometrics. Furthermore, inability of traditional security systems such as PINs and passwords to effectively provide security against sophisticated online threats is projected to offer abundant growth opportunities to the market in the near future.
Growth Drivers
Challenges
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2023 |
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Forecast Year |
2024–2036 |
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CAGR |
11.3% |
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Base Year Market Size (2023) |
USD 6.04 billion |
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Forecast Year Market Size (2036) |
USD 24.29 billion |
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Regional Scope |
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The biometrics for banking and financial services market is segmented by biometric type into iris, face, fingerprint, hand, voice, signature, and others, out of which, the face segment is anticipated to hold the largest share in the market. This can be accounted to the high commercialization of face recognition systems as a result of growing use of multimedia video technology. Apart from these, face recognition is one of the most successful forms of biometric, involving the measurement of eyes, nose, mouth and facial features. This is also predicted to accelerate the growth of the market segment in the coming years. Additionally, on the basis of application, the merchant payments system segment is assessed to acquire the largest share during the forecast period owing to the increasing trend of online shopping among consumers globally, and rising usage of these systems in semi-urban areas of developing nations with less accessibility to banks.
Our in-depth analysis of the global market includes the following segments:
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Biometric Type |
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Application |
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On the basis of geographical analysis, the biometrics for banking and financial services market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa region. The market in Asia Pacific industry is likely to hold largest revenue share by 2036, driven by increasing emphasis of BFSI companies to offer highest security to customer transactions through the use of biometrics. In addition, growing use of smartphones and online banking services is also expected to boost the market growth of the region in the future. As of 2021, there are more than 1 billion mobile connections. Along with these, there are about 600 million smartphone users in India, which are increasing at the rate of about 20 million per quarter. Moreover, the market in North America is projected to grab the largest share during the forecast period ascribing to the rising inflow of investments in cyber security industry, and strong presence of major market players in the region.
September 2021- Jordan Kuwait Bank selected Thales for supplying biometric payment cards for contactless EMV transactions. The cards will be distributed to the bank’s World Elite customers, who will be able to enroll biometrics from home.
Author Credits: Abhishek Verma
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