Biometrics Market in BFSI Sector

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