Digital Identity in BFSI Market Analysis

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.

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.

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 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 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.

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.

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.

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.