1. Home
  2. > Financial Services Market Trends
Identity Verification Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Identity Verification Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

  • June 2022
  • 171 pages
  • ID: 6126854
  • Format: PDF
  • Mordor Intelligence LLP


Table of Contents

Search Inside

The Global Identification Verification market was valued at USD 8.92 billion in 2021 and is expected to reach USD 18.49 billion in 2027, registering a CAGR of 12.62% over the forecast period (2022 - 2027).The primary drivers for the identity verification market are stringent regulations and the need for compliance. Consumers are highly dependent on the government for the protection of their data. In response, the government has introduced a stream of regulations that focus on reducing fraudulent activities and introduced by government bodies across the globe. Identity verification is one of the central ideas of such stringent regulations.

Key Highlights
The market for identity verification is expected to grow over the forecast period due to some imperative factors, such as adopting solutions through stringent regulations and the need for compliance. The regulatory authorities have become stricter toward the compliance of KYC (know your customer) and AML (anti-money laundering) among reporting entities.
The European Union launched the fifth AML directive (AML5), under which the identity verification threshold for the prepaid card industry was reduced from EUR 250 to EUR 150. All member states implemented the directive in January 2020. The AML5 regulations focus on transforming KYC processes to comply with the standards and procedures proposed by AML and eIDAS rules and establish guidelines for verifying customers at a high-security standard.
Moreover, government bodies worldwide are focusing on creating stringent regulations to curb identity theft and to get the global population under the legal identity umbrella. The United Nations and World Bank ID4D initiatives aim to provide everyone with a legal identity by 2030. Also, In the modern world, e-governance is a new notion that both developed and emerging countries are adopting. In the past ten years, the number of government entities using remote ID verification for social security cards, licenses, and a wide range of other documents has multiplied.
Additionally, the growing number of financial frauds in businesses is influencing the rise of identity verification solutions for businesses. According to the Verizon Data Breach Investigation report 2022, the company noted 5,212 confirmed data breaches amongst 23,896 incidents. The report has outlined the impact of the infrastructure and attack surface as large contributors to the risk. Further, the report highlighted that identity theft and fraud had been the basis of transactional cybercrime.
According to a study commissioned by the digital ID verification service provider Jumio which interviewed 8,000 adult consumers between April 7thand 14th, 2022, suggested that 80% of consumers prefer transacting with brands that perform digital identity verification. Further, 92% of consumers in Mexico, 89% of Singapore consumers, 74% of the US consumers, and 66% of the UK consumers said they were more likely to engage with brands with robust ID verification measures.

Key Market Trends

Banks and Financial Services Accounts for the Largest Market Share

Banks and financial service providers, including pension and insurance providers, have strict identity and personal data requirements, often known as Know Your Customer (KYC). For opening a bank account, switching accounts, taking out life insurance, or accessing pension records, several such attributes must be gathered and verified as part of a firm’s risk-based assessment and legal obligations.
For instance, In order to meet the standards of the National Automated Clearing House Association (NACHA) for allowing anti-fraud safeguards, the US-based financial services company SWBC teamed up with Fincity in January 2021. Additionally, it obtained access to Fincity Pay’s open banking features, which allowed it to validate ACH payments rapidly.
In June 2021, Simple Nexus, a platform for loan officers, borrowers, and settlement companies, combined with Fincity’s MVS, the company’s mortgage verification service. Through a single embedded service, this invention will simplify the verification of an applicant’s income and assets.
Financial data is some of the most sensitive information stored over the internet, and online identity fraud is estimated to cost over a trillion USD yearly. Owing to this, banks are investing heavily in authentication solutions, with spending of over USD 1 billion a year, representing approximately 30% of the total security budget of banks. Easy account set up and KYC are among the primary reasons customers adopt FinTech solutions.
The growing collaborations in the financial sector further boost the market growth rate. For instance, in February 2022, FYNXT, a global FinTech organization that provides digital solutions, announced the integration of Shufti Pro, an AI-powered identity verification service provider, into its client manager and client portal. Brokers using FYNXT’s platform can access Shufti Pro IDV services without leaving the platform. FYNXT is a financial technology platform that offers payment solutions for Forex, remittance, wealth management, and multi-asset management that are simple, cost-effective, and transparent.
In February 2022, Onfido, a global identity verification and authentication company stated that it had set 2021 as a breakthrough year. The company’s revenue increased by 90% Y-o-Y to over USD 100 million, including a 134% increase in the United States. To meet the growing demand for Onfido’s verification and authentication services, the company increased its workforce while also investing in R&D, advanced AI-powered fraudulent detection capabilities, and customer success for organizations worldwide.

Asia Pacific to Witness Significant Market Growth

The major factors driving the identity verification market in the Asia-Pacific include increased digitization initiatives, increased fraudulent activities and identity theft over the last decade, and advanced digital identity use cases across verticals. Furthermore, initiatives by governments and businesses focusing on digitalization and the implementation of new technologies, such as AI, ML, and automation in identity verification solutions, would present lucrative opportunities for identity verification vendors.
A fragmented regulatory environment and the rapid transition to digital commerce have spurred several enterprise fraud management (EFM) trends in Asia-Pacific.
The major contribution of COVID-19 is the shift of work culture from manual to automated; there was an increasing number of online activities, which has raised the huge number of online registrations and profile identification, due to which the risk of fraud has increased; thus the demand for the id verification is also growing.
Additionally, synthetic identity fraud is a growing trend. About 61% of merchants in APAC reported higher rates of such fraud, which is the most among all regions globally. Around 84% of merchants in APAC lost revenue due to payment fraud; in Singapore, this is slightly higher, with nine in 10 merchants reporting losses 57% of merchants in APAC said substantial impacts in costs for remediation of payment fraud victims in 2020.
In 2021, a Norton cyber safety insights report published that over 27 million Indian adults experienced identity theft in the last few months. The information also published around 1.3 billion hours spent to resolve the issues. As per the survey conducted with 1,000 respondents in the country, 36% of Indian adults detected unauthorized access to the account or device.

Competitive Landscape

The Identity Verification Market is highly fragmented, with numerous competitors and many competing technologies that provide intense rivalry among the players. Moving forward, acquisitions and collaborations of large companies with startups are expected, which are focused on innovation. Some of the key developments in the area are:

March 2022 - NDID, Thailand’s national digital identity platform for financial institutions and a private company, announced that following a successful Phase 1 of verifying natural persons, it would move on to verifying legal persons beginning in 2022, as well as verifying foreign identities. A partnership with Mastercard’s digital identity scheme for international connectivity has also been announced by the NDID.
March 2022 - Onfido announced the expansion of its Real Identity Platform, improving fraud accuracy by 54% and fully automated performance by 12x. The platform simplifies identity for everyone. Customers can reduce the complexity of sourcing and managing multiple identity verification vendors to meet local compliance regulations and can more easily mitigate fraud threats in a growing global marketplace.

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 150+ Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.

ReportLinker may already be registered as a supplier with your company. If you want to Order by PO, check with us first and we'll let you know if we are a registered supplier and what the vendor number is. Otherwise, we'll provide you with the necessary information to register ReportLinker as a vendor.

Grace helps you find the right report:

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

  • How we can help
    • I am not sure if the report I am interested in will fulfill my needs. Can you help me?
    • Yes, of course. You can call us at +33(0) 4 37 65 17 03 or drop us an email at [email protected] to let us know more about your requirements.
    • We buy reports often - can ReportLinker get me any benefits?
    • Yes. Set up a call with a Senior Research Advisor to learn more - [email protected] or +33(0) 4 37 65 17 03.
    • I have had negative experiences with market research reports before. How can you avoid this from happening again?
    • We advise all clients to read the TOC and Summary and list your questions so that we can get more insight for you before you make any purchase decision. A research advisor will accompany you so that you can compare samples and reports from different sources, and choose the study that is right for you.

  • Report Delivery
    • How and when I will receive my Report?
    • Most reports are delivered right away in a pdf format, while others are accessed via a secure link and access codes. Do note that sometimes reports are sent within a 12 hour period, depending on the time zones. However, you can contact us to escalate this. Should you need a hard copy, you can check if this option is offered for the particular report, and pay the related fees.
  • Payment conditions
    • What payment methods do you accept?
      1. Credit card : VISA, American Express, Mastercard, or
      2. You can download an invoice to pay by wire transfer, check, or via a Purchase Order from your company, or
      3. You can pay via a Check made out in US Dollars, Euros, or British Pounds for the full amount made payable to ReportLinker
    • What are ReportLinker’s Payment Terms?
    • All payments must normally be submitted within 30 days. However, you can let us know if you need extended time.
    • Are Taxes and duties included?
    • All companies based in France must pay a 20% tax per report. The same applies to all individuals based in the EU. All EU companies must supply their VAT number when purchasing to avoid this charge.
    • I’m not satisfied. Can I be refunded?
    • No. Once your order has been processed and the publisher has received a notification to send you the report, we cannot issue any refund or cancel any order. As these are not ‘traditional’ products that can be returned, reports that are dispatched are considered to be ‘consumed’.
  • User license
    • The license that you should acquire depends on the number of persons that need to access the report. This can range from Single User (only one person will have the right to read or access the report), or Department License (up to 5 persons), to Site License (a group of persons based in the same company location), or Corporate License (the entire company personnel based worldwide). However, as publishers have different terms and conditions, we can look into this for you.
Purchase Reports From Reputable Market Research Publishers


Reportlinker.com © Copyright 2022. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.

Make sure you don’t miss any news and follow us on