Digital transformation is a method that uses digital technology to change current business approaches into more advanced and technologically driven business approaches to increase customer satisfaction and to enhance revenue opportunities. In addition, various banks, fintech, and insurance companies have also adopted digital banking solutions to increase transparency among the enterprises and to build more trust among the employees. Furthermore, various insurance companies across the globe have adopted digital transformation to increase productivity of employees as well as to save time and resources of the company.
The key factors that drive the growth of the digital transformation in BFSI market include the increase in demand for customized IT solutions for specific banking needs. Traditional banking solutions are unable to meet the changing needs of customers and organizations. As a result, banks turn to customized IT solutions that meet their specific needs, delivering personalized experience and specialized functionality. Moreover, the main benefits of custom-written software are that it provides improved security for customers’ and organizations’ data and reduces the chances of system cyberattacks and phishing attacks, besides providing market access growth. In addition, exploration of digital channels to roll out new services is considered as an important factor that boosts the digital transformation in BFSI market. However, high implementation & maintenance cost of digital technology and security & privacy concerns related to data theft and cyber-attacks are expected to hamper the market growth. Cybersecurity risks lead to loss of privacy and financial threat, such as identity theft which negatively impacts the growth of the market. On the contrary, the rise in adoption of digital services among developing nations of Asia-Pacific and LAMEA countries is expected to offer remunerative opportunities for the expansion of the global market during the forecast period. Businesses across the Asian countries have adopted efficient and streamlined solutions for enhancing customer experience and to increase their customer base, which provides a lucrative opportunity for the market growth.
The digital transformation in BFSI market is segmented on the basis of component, deployment model, enterprise size, technology, end user and region. In terms of component, the market is bifurcated into solution and service. By deployment model, the market is divided into on-premises and cloud. On the basis enterprise size, the market is segmented into large enterprises and small and medium-sized enterprises. On the basis of technology, it is divided into artificial intelligence, cloud computing, blockchain, big data and business analytics, cyber security and others. As per end user, the market is bifurcated into banks, insurance companies and others. On the basis of region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The report analyzes the profiles of key players operating in the digital transformation in BFSI market such as Accenture, Alphasense Inc., Cognizant, FUJITSU, Google, LLC, HID Global Corporation, International Business Machines Corporation, Microsoft Corporation, Oracle Corporation and SAP SE. These players have adopted various strategies to increase their market penetration and strengthen their position in the digital transformation in BFSI market.
The key factors that drive the growth of the digital transformation in BFSI market include the increase in demand for customized IT solutions for specific banking needs. Traditional banking solutions are unable to meet the changing needs of customers and organizations. As a result, banks turn to customized IT solutions that meet their specific needs, delivering personalized experience and specialized functionality. Moreover, the main benefits of custom-written software are that it provides improved security for customers’ and organizations’ data and reduces the chances of system cyberattacks and phishing attacks, besides providing market access growth. In addition, exploration of digital channels to roll out new services is considered as an important factor that boosts the digital transformation in BFSI market. However, high implementation & maintenance cost of digital technology and security & privacy concerns related to data theft and cyber-attacks are expected to hamper the market growth. Cybersecurity risks lead to loss of privacy and financial threat, such as identity theft which negatively impacts the growth of the market. On the contrary, the rise in adoption of digital services among developing nations of Asia-Pacific and LAMEA countries is expected to offer remunerative opportunities for the expansion of the global market during the forecast period. Businesses across the Asian countries have adopted efficient and streamlined solutions for enhancing customer experience and to increase their customer base, which provides a lucrative opportunity for the market growth.
The digital transformation in BFSI market is segmented on the basis of component, deployment model, enterprise size, technology, end user and region. In terms of component, the market is bifurcated into solution and service. By deployment model, the market is divided into on-premises and cloud. On the basis enterprise size, the market is segmented into large enterprises and small and medium-sized enterprises. On the basis of technology, it is divided into artificial intelligence, cloud computing, blockchain, big data and business analytics, cyber security and others. As per end user, the market is bifurcated into banks, insurance companies and others. On the basis of region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The report analyzes the profiles of key players operating in the digital transformation in BFSI market such as Accenture, Alphasense Inc., Cognizant, FUJITSU, Google, LLC, HID Global Corporation, International Business Machines Corporation, Microsoft Corporation, Oracle Corporation and SAP SE. These players have adopted various strategies to increase their market penetration and strengthen their position in the digital transformation in BFSI market.
Key Benefits for Stakeholders
- The study provides an in-depth analysis of the global digital transformation in BFSI market along with the current & future trends to illustrate the imminent investment pockets.
- Information about key drivers, restrains, & opportunities and their impact analysis on the global digital transformation in BFSI market size is provided in the report.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the industry.
- The quantitative analysis of the global digital transformation in BFSI market from 2022 to 2032 is provided to determine the market potential.
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Key Market Segments
By Component
- Hardware
- Software
- Service
By Type
- Fingerprint
- Facial Recognition
- Hand Geometry
- Iris Recognition
- Others
By End User
- Retail
- Government
- Transportation
- Healthcare
- Hospitality
- Others
By Region
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- Charles Schwab and Co.
- JPMorgan Chase & Co
- Diebold Nixdorf, Incorporated.
- NEC CORPORATION
- Visa, Inc
- IDEMIA
- Infineon Technologies AG
- IDEX Biometrics ASA
- Synaptics Incorporated
- Axon
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: BIOMETRIC BANKING MARKET, BY COMPONENT
CHAPTER 5: BIOMETRIC BANKING MARKET, BY TYPE
CHAPTER 6: BIOMETRIC BANKING MARKET, BY END USER
CHAPTER 7: BIOMETRIC BANKING MARKET, BY REGION
CHAPTER 8: COMPETITIVE LANDSCAPE
CHAPTER 9: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
The Biometric Banking Market is likely to experience a significant growth rate of 17.2% from 2023-2032 owing to increasing market demand for iris recognitionBiometrics is an automated method of identifying customers with the help of biological characteristics and traits like iris, voice recognition, and fingerprints. This characteristic is unique for every individual and not easy to forge into. This technology is rising as an advanced layer to many personal and enterprise security systems.
The increase in security and reduced identity fraud are key drivers for the growth of biometric banking market. The banking sector is quickly adopting biometric authentication as it offers more secure identity verification procedures. For user authentication, this technology makes use of physical traits like facial recognition, fingerprint scanning, voice recognition, and retinal scanning. Moreover, biometric use in banking methods offer a great advantage to customers when compared to traditional banking processes in terms of time saved. In addition, the increase in mobile banking and contactless payments and biometric authentication addresses consumers’ key requirements of convenience are the major driving factors for the market. Growth in mobile banking and contactless payments has increased the need for secure authentication methods. As more financial transactions are conducted remotely via mobile phones, biometric technologies such as fingerprint, face and voice recognition provide a higher level of security than traditional PINs or passwords and help secure biometric identities. This verification allows only authorized users to access the account and make transactions. However, the security concerns and high implementation cost are major factors that hamper the growth of the market. Integrating biometric solutions into existing banking infrastructure is complex and requires significant investment. Compatibility issues and interoperability challenges may arise during the implementation process. Furthermore, high implementation costs make biometric authentication solutions less accessible to smaller banks or institutions with limited financial resources.
The market also offers growth opportunities to the key players in the market. The rise in adoption of artificial intelligence (AI) and machine learning (ML) presents a significant opportunity for the biometric banking industry. Machine learning algorithms help to adopt user behavior, increasing accuracy and efficiency. Moreover, advancements in biometric sensors and algorithms lead to greater accuracy and reliability in biometric authentication.
The biometric banking market is segmented on the basis component, type, end user, and region. On the basis of component, it is divided into hardware, software, and service. By type it is categorized into fingerprint, facial recognition, hand geometry, iris recognition, and others. On the basis of end user, it is classified into retail, government, transportation, healthcare hospitality, and others. Region wise, it is analyzed across North America (the U. S., and Canada), Europe (UK, Germany, France, Italy, Spain, and rest of Europe), Asia-Pacific (China, India, Japan, Australia, South Korea and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
The key players profiled in the study are Charles Schwab and Co., Visa, Inc, JPMorgan Chase & Co, Diebold Nixdorf, Incorporated., NEC CORPORATION, IDEMIA, Infineon Technologies AG, IDEX Biometrics ASA, Synaptics Incorporated, and Axon. The players in the market have been actively engaged in the adoption various strategies such as collaboration, product launch, and partnership to remain competitive and gain advantage over the competitors in the market. For instance, in June 2021, Visa Inc. partnered with Abu Dhabi Islamic Bank (ADIB). The partnership makes use of Visa Consumer Authentication Service, which employs novel techniques for payment authentication, such as fingerprint and facial recognition. Through this interface, bank clients utilized the ADIB mobile app to validate online transactions. This strategic implementation helped Visa Inc. to get more involved in an area that was becoming popular, which aided in keeping the company from losing market share to fintech and ensuring that it continues to dominate the payments sector. Moreover, in July 2023, IDEX Biometrics collaborated with Goldpac Fintech Hong Kong Limited, a Goldpac Group Company to internationally implement biometric smart cards based on IDEX Biometrics full fingerprint solution for identity access and payments. This strategic implementation is done to strengthen IDEX Biometrics position in the biometric banking market.
Key Market Insights
By component, the hardware segment was the highest revenue contributor to the market, and is estimated to $12.12 billion by 2032, with a CAGR of 15.6%. However, the software segment is expected to be the fastest growing segment with the CAGR of 19.6% during the forecast period.By type, the fingerprint segment dominated the global market, and is estimated to reach $8.65 billion by 2032, with a CAGR of 14.7%. However, the iris recognition segment is expected to be the fastest growing segment with the CAGR of 21.5% during the forecast period.
By end user, the retail segment dominated the global market, and is estimated to reach $7.18 billion by 2032, with a CAGR of 14.8%. However, the transportation segment is expected to be the fastest growing segment with the CAGR of 21.7% during the forecast period.
Based on region, North America was the highest revenue contributor, accounting for $1.82 billion in 2022, and is estimated to reach $7.11 billion by 2032, with a CAGR of 14.9%.
Companies Mentioned
- Charles Schwab and Co.
- JPMorgan Chase & Co
- Diebold Nixdorf, Incorporated.
- NEC CORPORATION
- Visa, Inc
- IDEMIA
- Infineon Technologies AG
- IDEX Biometrics ASA
- Synaptics Incorporated
- Axon
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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