Fintech Insights North America Reports

Research Shows Biometric Face Authentication Aids COVID Acceleration of Digital Transformation

According to new research from Acuity Market Intelligence, COVID-driven acceleration of digital transformation has intensified the need for secure, reliable, and trusted digital identity. Citizen and consumer embrace of “digital-first” and “digital only” in the wake of pandemic safety concerns and restrictions has opened the floodgates of digitally enabled fraud. Biometric face verification and liveness detection are being widely deployed to address this unprecedented digital security threat quickly becoming synonymous with secure remote digital onboarding.

Biometric face verification and liveness detection are critical components of remote digital onboarding solutions,” explains Maxine Most, Principal at Acuity Market Intelligence. “Face verification matches a face image captured at onboarding to an image from a trusted credential such as a driver’s license or passport, or from a government identity or credential database. Liveness detection ensures a live person is present while submitting their face image and is not attempting to mask or conceal their true identity via any number of spoofing or presentation attacks.”

Acuity’s latest report “Face Verification and Liveness for Remote Digital Onboarding” provides insight into this market based on Acuity’s proprietary Constellation Market Landscape Model. The Constellation analyses vendor market position based on quantitative performance and qualitative market position metrics and categorises each vendor as a Trailblazer, Contender, Mover, or Player.

“With global identity verification revenues projected to reach $15 to $18 billion annually by 2024, there is clearly room for explosive growth and our analysis shows this growth is happening now,” said Most, Acuity’s lead biometric and identity market analyst. “While 88% of vendors included in the report currently process less than 50 million transactions annually, and 62% report annual revenues of less than $10M, 50% are experiencing at least 100% annual transaction volume growth and 46% at least 100% annual revenue growth rate.”

Vendors analysed in this report fall into one of two categories. They develop proprietary face verification and/or liveness detection software as part of their own digital onboarding solutions or component offerings. Or they offer face verification and/or liveness detection software that is integrated into third-party solutions.

“The market landscape is being shaped by a range of innovators. From biometric core technology suppliers to digital onboarding solution providers, to identity verification platform players, to the big biometric platform players, everyone wants in. The market is heating up as the stakes couldn’t be higher,” Most added. “Rapid deployment is also critical. Customers expect and vendors deliver the vast majority of remote digital onboarding solutions within two weeks. And while SaaS is the preferred delivery vehicle, most vendors offer on-premise options, with nearly half providing face verification and liveness testing on-device.“

Author

  • Polly is a journalist, content creator and general opinion holder from North Wales. She has written for a number of publications, usually hovering around the topics of fintech, tech, lifestyle and body positivity.

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