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    Digital Identity in BFSI Market

    ID: MRFR/BFSI/10623-HCR
    128 Pages
    Ankit Gupta
    October 2025

    Digital Identity in BFSI Market Research Report Information By Offering (Solutions and Services), By Solution Type (Identity Verification, Authentication, Identity Lifecycle Management, and Other Solution Types), By Identity Type (Biometric and Non-biometric), By Organization Size (Large Organization and SMEs), and By Region (North America, Europe, Asia-Pacific, and Rest Of The World) – Industry Forecast Till 2035

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    Digital Identity in BFSI Market Infographic
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    Digital Identity in BFSI Market Summary

    The Global Digital Identity in BFSI Market is projected to grow significantly from 44.41 USD Billion in 2024 to 346.06 USD Billion by 2035.

    Key Market Trends & Highlights

    Digital Identity in BFSI Key Trends and Highlights

    • The market is expected to achieve a compound annual growth rate (CAGR) of 20.52% from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 346.0 USD Billion, indicating robust growth potential.
    • in 2024, the market is valued at 44.41 USD Billion, reflecting the increasing demand for digital identity solutions in the BFSI sector.
    • Growing adoption of advanced authentication technologies due to the rising need for enhanced security is a major market driver.

    Market Size & Forecast

    2024 Market Size 44.41 (USD Billion)
    2035 Market Size 346.06 (USD Billion)
    CAGR (2025-2035) 20.52%

    Major Players

    NEC, Samsung SDS, Thales, Telus, IDEMIA, GBG, Tessi, Daon, ForgeRock, ImageWare, Jumio, iProov, ID R&D, Refinitiv, OneSpan, Smartmatic, Freja EID Group, Vintegris, AU10TIX, Signicat, Duo Security, Syntizen, Hashcash Consultant, Good Digital Identity

    Digital Identity in BFSI Market Trends

    Digital identification providing a new frontier in value creation for individuals is driving the market growth

    Digital identification, sometimes known as "digital ID," opens up new possibilities for people and organizations all around the world to create value. Without a legally valid form of identity, almost a billion individuals worldwide risk being excluded from government assistance, health care, financial services, the job market, the capacity to protect property rights, and the opportunity to start a business.

    Digital ID can also benefit the remaining 6.6 billion people on the planet, who either lack an ID or only have limited access to online services or who are online users but find it difficult to manage their digital footprints securely and effectively.

    A good digital ID offers high levels of assurance for verification and authentication, uniqueness, individual consent, privacy protection for users, and control over personal data. If done right, this can benefit both people and entire societies. By 2030, countries implementing digital ID may unlock value equal to 3 to 13% of GDP, according to research from the McKinsey Global Institute. eID in Estonia and Aadhaar in India are two examples of government-led digital ID systems that have already been implemented with some success in a few nations.

    Other examples include financial institution-led digital ID systems SecureKey Concierge in Canada and BankID in Sweden.

    Digital ID can enhance customer satisfaction, increase productivity, and enhance risk management for institutions. For instance, in the UK, around 25% of all bank applications are abandoned because of problems with the registration procedure, which digital ID might assist to ease by providing more convenient authentication. One survey indicated that nearly 30% of calls to banks' call centers were requests for account access due to misplaced or forgotten passwords. Digital ID can also enhance the quality and minimize the cost of continuous customer support.

    Additionally, banks, as employers, can utilize digital ID to extend and enhance talent matching and automate employee identification, which will help them fill open positions more quickly with candidates who are more qualified. Thus, driving the Digital Identity in BFSI market revenue.

    The increasing reliance on digital identity solutions in the BFSI sector appears to enhance security measures while simultaneously improving customer experience, suggesting a transformative shift in how financial institutions engage with their clients.

    U.S. Department of the Treasury

    Digital Identity in BFSI Market Drivers

    Regulatory Compliance

    Regulatory compliance is a pivotal driver for the Global Digital Identity in BFSI Market Industry, as financial institutions face stringent regulations regarding customer identification and data protection. Governments worldwide are implementing laws that mandate robust identity verification processes to combat fraud and money laundering. For instance, the Financial Action Task Force has established guidelines that require financial entities to adopt comprehensive Know Your Customer protocols. Compliance with these regulations not only mitigates legal risks but also fosters customer trust. As a result, the market is anticipated to expand significantly, with projections indicating a growth trajectory leading to a valuation of 346.0 USD Billion by 2035.

    Market Growth Projections

    The Global Digital Identity in BFSI Market Industry is projected to experience substantial growth over the coming years. With a market value of 44.4 USD Billion anticipated in 2024, the industry is on a trajectory to reach an impressive 346.0 USD Billion by 2035. This growth is underpinned by a compound annual growth rate of 20.52% from 2025 to 2035, reflecting the increasing importance of digital identity solutions in the financial sector. As institutions continue to invest in advanced technologies and comply with regulatory requirements, the market is expected to expand significantly, driven by the need for secure and efficient identity verification processes.

    Technological Advancements

    Technological advancements play a crucial role in shaping the Global Digital Identity in BFSI Market Industry. Innovations such as biometrics, artificial intelligence, and blockchain technology are revolutionizing identity verification processes. These technologies enhance the accuracy and efficiency of identity checks, enabling financial institutions to streamline operations while improving customer experience. For instance, biometric authentication methods, such as facial recognition and fingerprint scanning, are increasingly adopted to ensure secure access to financial services. The integration of these advanced technologies is expected to propel market growth, with a compound annual growth rate of 20.52% projected from 2025 to 2035.

    Consumer Demand for Convenience

    Consumer demand for convenience is reshaping the Global Digital Identity in BFSI Market Industry. As customers seek faster and more efficient banking experiences, financial institutions are compelled to adopt digital identity solutions that streamline processes. The expectation for instant access to services drives the need for innovative identity verification methods that minimize friction during transactions. This trend is evident in the increasing use of mobile wallets and contactless payments, which require secure identity management. As a result, the market is likely to experience significant growth, with projections indicating a valuation of 346.0 USD Billion by 2035, as institutions adapt to evolving consumer preferences.

    Growing Digital Banking Adoption

    The growing adoption of digital banking services is a significant driver for the Global Digital Identity in BFSI Market Industry. As consumers increasingly prefer online banking solutions, financial institutions must implement secure digital identity verification methods to facilitate seamless transactions. This shift towards digital platforms necessitates robust identity management systems to prevent fraud and enhance customer trust. The surge in mobile banking applications and online financial services has created a fertile ground for digital identity solutions. Consequently, the market is poised for substantial growth, with expectations of reaching 44.4 USD Billion in 2024, as institutions strive to meet the demands of a digital-savvy clientele.

    Increasing Cybersecurity Threats

    The rise in cybersecurity threats has catalyzed the demand for robust digital identity solutions within the Global Digital Identity in BFSI Market Industry. Financial institutions are increasingly targeted by cybercriminals, leading to substantial financial losses and reputational damage. As a response, banks and financial service providers are investing heavily in advanced identity verification technologies to safeguard customer data. This trend is expected to drive the market's growth, as organizations prioritize security measures to protect sensitive information. The urgency to combat these threats is reflected in the projected market value of 44.4 USD Billion in 2024, highlighting the critical need for enhanced digital identity solutions.

    Market Segment Insights

    Digital Identity in BFSI Offering Insights

    The Digital Identity in BFSI Market segmentation, based on offering, includes solutions and services. Solutions segment dominated the global market in 2022. The goal of digital identification systems is to improve customer satisfaction while simultaneously boosting security, cutting costs, and automating business processes.

    Digital Identity in BFSI Solution Type Insights

    The Digital Identity in BFSI Market segmentation, based on solution type, includes identity verification, authentication, identity lifecycle management, and other solution types. The authentication segment dominated the Digital Identity in BFSI Market in 2022. A new trend in the digital sector is the use of cloud-based digital identification solutions. Furthermore, demand for cloud-based digital identification solutions is increasing due to expanding usage among small, medium, and large organizations. This data is used to calculate an occupant's cost based on how much energy they use over the course of a year, month, or four weeks.

    Additionally, it lowers the indirect expenses associated with money recovery for property managers.

    Digital Identity in BFSI Identity Type Insights

    The Digital Identity in BFSI Market segmentation, based on identity type, includes biometric and non-biometric. Biometric segment dominated the Digital Identity in BFSI Market in 2022. Biometric software enables communication and operation between biometric devices, computers, and networks to which they are connected. Additionally, it enables successful connection and compatibility across numerous applications running on diverse operating systems. Software is an essential part of biometric systems.

    Digital Identity in BFSI Organization Size Insights

    The Digital Identity in BFSI Market segmentation, based on organization size, includes large organization and SMEs. Large organization segment dominated the global market in 2022. Large corporations are rethinking their security policies and architecture to incorporate digital identity solutions in order to safeguard crucial assets from various cyber-attacks. Large businesses were early adopters of digital identification solutions because they have a sizable workforce and accompanying networking equipment that are susceptible to identity-related risk.

    Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

    Get more detailed insights about Digital Identity in BFSI Market Research Report – Forecast till 2034

    Regional Insights

    By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Digital Identity in BFSI Market dominated this market in 2022 (45.80%). In the North American region, a number of significant market companies operate, offering cutting-edge solutions to all of the region's industry verticals. Thus, in addition to physical presence, strategic investments, collaborations, and significant R&D operations are contributing to the widespread adoption of digital identification solutions. Further, the U.S.

    Digital Identity in BFSI market held the largest market share, and the Canada Digital Identity in BFSI market was the fastest growing market in the North America region.

    Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

    DIGITAL IDENTITY IN BFSI MARKET SHARE BY REGION

    Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

    Europe Digital Identity in BFSI market accounted for the healthy market share in 2022. Europe is regarded as the considerably mature market in terms of adopting digital identity solutions due to factors like the rise in identity and authentication frauds and the presence of important suppliers in the region. Further, the German Digital Identity in BFSI market held the largest market share, and the U.K Digital Identity in BFSI market was the fastest growing market in the European region.

    The Asia Pacific Digital Identity in BFSI market is expected to register significant growth from 2023 to 2032. This is because emerging economies in the area like China and India are increasingly adopting cutting-edge solutions across the majority of business verticals. The regional market growth is also anticipated to be supported during the forecast period by the increasing adoption of smart devices and increasing internet penetration. The expansion of digital identity solutions in this region is also anticipated to be aided by the growing government initiatives and investments to support smart solutions.

    Moreover, China’s Digital Identity in BFSI market held the largest market share, and the Indian Digital Identity in BFSI market was the fastest growing market in the Asia-Pacific region.

    Key Players and Competitive Insights

    Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Digital Identity in BFSI market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Digital Identity in BFSI Industry must offer cost-effective items.

    Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Digital Identity in BFSI Industry to benefit clients and increase the market Solution Type. In recent years, the Digital Identity in BFSI Industry has offered some of the most significant advantages to medicine.

    Major players in the Digital Identity in BFSI market, including NEC, Samsung SDS, Thales, Telus, IDEMIA, GBG, Tessi, Daon, ForgeRock, ImageWare, Jumio, iProov, ID R&D, Refinitiv, OneSpan, Smartmatic, Freja EID Group, Vintegris, AU10TIX, Signicat, Duo Security, Syntizen, and Hashcash Consultant Good Digital Identity, are attempting to increase market demand by investing in research and development operations.

    IDEMIA is a company that offers enhanced identities for the public security, telecommunications, and financial industries. Through identification, authentication, embedded biometric modules, and digital identities, the company offers securing banking and payments, telecom connectivity, physical locations, digital assets, as well as public identity, giving customers identities that ensure privacy and security, verifiable transactions, and communication.

    A provider of identification data intelligence services is GB Group PLC (GB Group). The business provides solutions for fraud, risk, and compliance, including services for sharing and accessing fraud data, document validation, application fraud detection, and consumer behavior monitoring. Additionally, it provides location and customer intelligence services, such as worldwide address, global phone, global bank account, and global email validation services. The GB Group provides solutions for ID (identification document) verification, registration, engagement, solutions for ID tracing and investigation, solutions for ID employ and compliance, and solutions for ID fraud and risk management.

    China, the Philippines, Vietnam, Thailand, Indonesia, Malaysia, Australia, Spain, Germany, Turkey, and the US are among the countries where the organization conducts business. Chester, England, is home to the GB Group's headquarters in the UK.

    Key Companies in the Digital Identity in BFSI Market market include

    Industry Developments

    March 2023: The Lloyds Banking Group committed £10 million in the digital identity company Yoti to support the creation of cutting-edge technology that would keep people safe online, battle the growing concerns of identity fraud, and give people more control over their personal data.

    Future Outlook

    Digital Identity in BFSI Market Future Outlook

    The Digital Identity in BFSI Market is projected to grow at a 20.52% CAGR from 2025 to 2035, driven by technological advancements, regulatory compliance, and increasing cybersecurity concerns.

    New opportunities lie in:

    • Develop AI-driven identity verification solutions to enhance customer onboarding processes.
    • Invest in blockchain technology for secure and transparent transaction records.
    • Create partnerships with fintech firms to expand digital identity services across platforms.

    By 2035, the Digital Identity in BFSI Market is expected to be a cornerstone of financial security and innovation.

    Market Segmentation

    Digital Identity in BFSI Offering Outlook

    • Solutions
    • Services

    Digital Identity in BFSI Regional Outlook

    • {""=>["North America\n\nUS\nCanada"
    • "US"
    • "Canada"]}
    • {""=>["US"
    • "Canada"]}
    • {""=>["Europe\n\nGermany\nFrance\nUK\nItaly\nSpain\nRest of Europe"
    • "Germany"
    • "France"
    • "UK"
    • "Italy"
    • "Spain"
    • "Rest of Europe"]}
    • {""=>["Germany"
    • "France"
    • "UK"
    • "Italy"
    • "Spain"
    • "Rest of Europe"]}
    • {""=>["China"
    • "Japan"
    • "India"
    • "Australia"
    • "South Korea"
    • "Rest of Asia-Pacific"]}
    • {""=>["Middle East"
    • "Africa"
    • "Latin America"]}

    Digital Identity in BFSI Identity Type Outlook

    • Biometric
    • Non-biometric

    Digital Identity in BFSI Solution Type Outlook

    • Identity Verification
    • Authentication
    • Identity Lifecycle Management
    • Other Solution Types

    Digital Identity in BFSI Organization Size Outlook

    • Large Organization
    • SMEs

    Report Scope

    Report Attribute/Metric Details
    Market Size 2024 USD 44.41 Billion
    Market Size 2025 USD 53.52 Billion
    Market Size 2035 346.06 (Value (USD Billion))
    Compound Annual Growth Rate (CAGR) 20.52% (2025 - 2035)
    Base Year 2024
    Market Forecast Period 2025 - 2035
    Historical Data 2020-2023
    Market Forecast Units Value (USD Billion)
    Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
    Segments Covered Offering, Solution Type, Identity Type, Organization Size, and Region
    Geographies Covered North America, Europe, Asia Pacific, and the Rest of the World
    Countries Covered The U.S., Canada, German, France, U.K, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
    Key Companies Profiled NEC, Samsung SDS, Thales, Telus, IDEMIA, GBG, Tessi, Daon, ForgeRock, ImageWare, Jumio, iProov, ID R&D, Refinitiv, OneSpan, Smartmatic, Freja EID Group, Vintegris, AU10TIX, Signicat, Duo Security, Syntizen, and Hashcash Consultant Good Digital Identity
    Key Market Opportunities Digital ID gaining prominence as the cornerstone of end-to-end and seamless customer experience
    Key Market Dynamics The need to serve customers better, provide easy access to banking products, reduced identity fraud and spoofing risks, and avoidance of expensive data maintenance

    Market Highlights

    Author
    Ankit Gupta
    Senior Research Analyst

    Ankit Gupta is an analyst in market research industry in ICT and SEMI industry. With post-graduation in "Telecom and Marketing Management" and graduation in "Electronics and Telecommunication" vertical he is well versed with recent development in ICT industry as a whole. Having worked on more than 150+ reports including consultation for fortune 500 companies such as Microsoft and Rio Tinto in identifying solutions with respect to business problems his opinions are inclined towards mixture of technical and managerial aspects.

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    FAQs

    How much is the Digital Identity in BFSI market?

    The global Digital Identity in BFSI market size was valued at USD 44.41 billion in 2024.

    What is the growth rate of the Digital Identity in BFSI market?

    The global market is projected to grow at a CAGR of 20.52% during the forecast period, 2025 to 2035.

    Which region held the largest market share in the Digital Identity in BFSI market?

    North America had the largest share in the global market

    Who are the key players in the Digital Identity in BFSI market?

    The key players in the market are NEC, Samsung SDS, Thales, Telus, IDEMIA, GBG, Tessi, Daon, ForgeRock, ImageWare, Jumio, iProov, ID R&D, Refinitiv, OneSpan, Smartmatic, Freja EID Group, Vintegris, AU10TIX, Signicat, Duo Security, Syntizen, and Hashcash Consultant Good Digital Identity

    Which Offering led the Digital Identity in BFSI market?

    The Solution Offering dominated the market in 2022.

    Which Solution Type had the largest market share in the Digital Identity in BFSI market?

    The Authentication Solution Type had the largest share in the global market.

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