Number of identity verification checks to surpass 90B by 2026: research

Remote onboarding drives the growth

digital identity

Number of identity verification checks to surpass 90B by 2026: research. Source: unsplash.com

According to Juniper Research, spending on digital identity verification by businesses will reach $16.7 billion in 2026, from $9.4 billion in 2021.

In fact, digital identity verification is where identity is checked using digitally verifiable elements, such as selfie scans, address checks and knowledge-based authentication. This 77% growth will be fuelled by the fast-growing need to digitally onboard users, which has accelerated during the pandemic.

While the pandemic accelerated digital transformation, many industries had already been increasing digitisation; reflecting shifting customer appetites and opportunities for operational efficiency.

The research also found that banking and financial services will account for almost 62% of digital identity verification spend by businesses by 2026. This importance reflects how critical digital verification is in helping banks to meet severe regulatory requirements in a complex digital environment.

Digital-only banks have shown that fully digital Know Your Customer can work and is very engaging for the user, therefore the pressure is on for traditional banks to deploy new identity verification services. Managing this transition quickly, and getting the user convenience/security balance right will determine overall success
Vladimir Surovkin, research co-author 

According to data, the global volume of identity verification checks will exceed 92 billion in 2026, from 45 billion in 2021. While banking & financial services are major drivers of this growth, the broadening of identity verification into areas including remote onboarding for mobile network operators or for digital gambling will create significant opportunities for vendors over the next 5 years.

We’ve reported that Swiss e-commerce in 2020 was 3 times higher than in previous years.

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