Digital identity verification spend to exceed $16.7bn in 2026

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Growth will be fuelled by the escalating need to digitally onboard users, says Juniper Research

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21 June 2021 | 0

Global spending on digital identity verification by businesses will reach $16.7 billion in 2026, up from $9.4 billion in 2021. This is according to a new study from Juniper Research, which found that the 77% growth will be fuelled by the rapidly growing need to digitally onboard users, which has accelerated during the pandemic. Digital identity verification is where identity is checked using digitally verifiable elements, such as selfie scans, address checks and knowledge-based authentication.

While the pandemic has accelerated digital transformation, many industries had already been increasing digitisation, which reflects shifting customer appetites and opportunities for operational efficiency. The research paper recommended seamless digital onboarding as the minimum requirement in the post-pandemic environment, with user expectations demanding processes that are both low friction and high security; necessitating AI use for ongoing, behavioural analytics.

Further, its new Digital Identity Verification research found that banking and financial services will account for almost 62% of digital identity verification spend by businesses by 2026. This importance reflects how critical digital verification is in helping banks meet severe regulatory requirements in a complex digital environment.

 

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Research co-author Vladimir Surovkin said: “Digital-only banks have shown that fully digital Know Your Customer can work and is very engaging for the user, therefore the pressure is on for traditional banks to deploy new identity verification services. Managing this transition quickly, and getting the user convenience/security balance right will determine overall success.”

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