April 25, 2016 -
A new Special Report from Biometrics Research Group, Inc. on “Biometrics and Banking” postulates that the ﬁnancial services sector has emerged as a primary end-user market for biometrics technology worldwide.
Biometric Update Special Reports provide analysis and competitive industry intelligence for the global biometrics industry including market size, multiple industry segments, venture capital and other business opportunities, along with in-depth profiles on the best emerging companies and solutions.
The firm’s ‘Special Reports’ are sponsored by leading firms within the biometrics sector and offer comprehensive industry analysis along with forward-looking, systematic data about the global biometrics market. This latest report was sponsored by HID Global and Biometrics in Banking & Financial Services by IQPC.
In the new report, Biometrics Research Group, Inc. estimated that total revenues for biometrics supplied to the global banking sector totaled US$900 million by the end of 2012. We subsequently projected that total revenues in the sector increased to US$1.8 billion by the end of 2015. This means that biometric revenue from the banking sector constituted approximately 12 percent of the entire US$7 billion marketplace in 2012 and is likewise projected to make up 12 percent of the market in 2015. By the end of 2016, we believe that revenue will continue to increase to US$2.2billion and we further estimate that the ﬁnancial biometrics market will eventually account for almost a third of total biometrics market revenues globally by 2020. Biometrics Research Group also projects that the market will grow at a compound annual growth rate (CAGR) of more than 50 percent from 2016 to 2020.
Biometrics Research Group believes that revenue growth surrounding biometrics in the global banking sector will be driven by an increased emphasis on protecting ﬁnancial transactions from fraud, identity theft and security breaches. Identity theft victims reported a total of US$24.7 billion in direct and indirect losses attributed to all incidents of identity theft experienced in 2012. Although government and civil identity applications have been early adopters and the largest implementers of biometrics over the past decade, commercial and consumer sectors have become important target markets, especially in regards to ﬁnancial services. The adoption of biometrics by the ﬁnancial services sector can be attributed to the need to oﬀset increased fraudulent activity and identity theft.
The report provides an update to a Biometric Update Special Report published in 2014 concerning the financial services sector.
Biometrics Research Group, Inc. is headquartered in Toronto with a team of writers, researchers, editors, producers and research analysts delivering independent coverage about the global biometrics industry six days a week. The firm publishes BiometricUpdate.com, the leading online news property that publishes breaking stories, analysis, and research about the global biometrics market.