What is the Historic and Current Scenario of the Advanced Authentication In The Financial Service Market?
The advanced authentication in the financial service market has seen considerable growth due to a variety of factors.
• The market size of advanced authentication in the financial service sector has seen substantial growth in the past years. Projections show that it will expand from $6.39 billion in 2024, escalating to $7.23 billion in 2025, marking a compound annual growth rate (CAGR) of 13.2%. The impressive growth during the historical period is linked to factors such as regulatory compliance, digitisation in the finance sector, increasing mobile banking, demand for security from consumers, user convenience, and user experience.
What Can Be Expected from the Advanced Authentication In The Financial Service Market in the Coming Years?
The Advanced Authentication In The Financial Service market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for advanced authentication in the financial service sector is projected to experience substantial growth in the forthcoming years, escalating to $13.28 billion by 2029 with a compound annual growth rate (CAGR) of 16.4%.
The projected growth during the forecast period can be credited to factors such as the broadening of open banking, the globalization of financial services, the consistent escalation of cyber threats, implementation of tokenization for payment security, a rise in digital transactions, and regulatory evolution. Notable trends during the forecast period encompass the adoption of biometric authentication, growth of multi-factor authentication (MFA), the embracing of risk-based authentication, efforts in securing customer identity verification, password-less authentication strategies, and the utilization of blockchain for identity management.
What Are the Critical Driver Fuelling The Advanced Authentication In The Financial Service Market's Growth?
The burgeoning amount of non-cash payments or transactions is projected to drive the growth of sophisticated authentication in the financial services industry. The primary motivator for going cashless is the easy facilitation of financial operations. Consumers enjoy the smooth progression offered by digital payments extensively. Tools like encryption and biometric protection are integrated with the intention of making non-cash payments or transactions safer. As an example, a study from the National Informatics Centre, an Indian science and technology organization, stated in April 2023 that there was a 72% year-on-year growth in 2021, with over 1.49 billion transactions amounting to INR 5.6 trillion being processed in June 2021. By the end of 2022, the total transaction value of UPI had risen remarkably to INR 125.95 trillion (1.498 trillion USD), demonstrating a 1.75 times year-on-year increase. Remarkably, the total transaction value of UPI accounted for almost 86% of India's GDP in FY22. Consequently, the rise in the volume of non-cash payments is spurring the advancement of authentication in the financial service industry.
How Is The Advanced Authentication In The Financial Service Market segmented?
The advanced authentication in the financial service market covered in this report is segmented –
1) By Authentication Type: Smartcards, Biometrics, Mobile Smart Credentials, Tokens, Other Types
2) By Enterprise Size: Large Enterprise, Small and Medium Enterprises
Subsegments:
1) By Smartcards: Contact Smartcards, Contactless Smartcards, Dual-Interface Smartcards
2) By Biometrics: Fingerprint Recognition, Facial Recognition, Iris Recognition, Voice Recognition
3) By Mobile Smart Credentials: Mobile Wallets, Mobile Authentication Apps, QR Code-Based Credentials
4) By Tokens: Hardware Tokens, Software Tokens, One-Time Password (OTP) Tokens
5) By Other Types: Behavioral Biometrics, Geolocation-Based Authentication, Multi-Factor Authentication (MFA) Solutions
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What New Trends Are Influencing The Advanced Authentication In The Financial Service Market?
The progress in technology is a significant trend gaining traction in the advanced authentication sector of financial services market. Key players in the advanced authentication in financial services domain are improving their new technologies, investing in research, and development to fortify their market standing. For example, in May 2022, Mastercard, an American financial services enterprise, introduced biometric payments aiming to amplify the checkout experience. This biometric checkout service lets patrons register for the service via a merchant's or identity provider's application. This novel technology assures quick and safe checkout service where customers can simply smile at a camera or wave their hand over a reader to make a payment.
Who Are the Key Players In The Advanced Authentication In The Financial Service Market?
Major companies operating in the advanced authentication in the financial service market include:
• Fujitsu Limited
• Thales Group
• NEC Corporation
• Broadcom Inc.
• Safran Identity And Security SAS
• Dell Technologies Inc.
• Lumidigm Inc.
• Validsoft Limited
• Pistolstar Inc.
• SecurEnvoy Limited
• CA Technologies Inc.
• OpenText Corporation
• Ping Identity Corporation
• Mastercard Inc.
• NetMotion Wireless Inc.
• Aware Inc.
• HID Global Corporation
• RSA Security LLC
• Gemalto N.V.
• Vasco Data Security International Inc.
• Entrust Datacard Corporation
• OneSpan Inc.
• Crossmatch Technologies Inc.
• AuthenTrend Technology Inc.
• Bio-Key International Inc.
• Centrify Corporation
• Cognitec Systems GmbH
• CyberArk Software Ltd.
• Daon Inc.
• Deepnet Security Ltd.
• Duo Security Inc.
• FacePhi Biometria S.A.
• Feitian Technologies Co. Ltd.
• Fingerprint Cards AB
What Is The Most Dominant Region In The Advanced Authentication In The Financial Service Market?
North America was the largest region in the advanced authentication market for financial services in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the advanced authentication in the financial service market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
