Digital identity verification market forecast to reach $16.7B by 2026
Remote onboarding adoption will drive global spending on digital identity verification to $16.7 billion in 2026, according to Juniper Research, as the total number of identity verification checks more than doubles from 45 billion in 2021 to 92 billion. The research is released just as Techsign launches a digital identity platform, Yoti enters a regulatory sandbox, and Rapyd launches a venture arm.
Digital identity verification market
The whitepaper ‘Maximising (sic) security with digital identity verification’ reviews the various methods of identity verification, including biometrics and liveness detection, and breaks down the market by industry and geography. Financial services and banking will represent 62 percent of spending on digital identity verification by 2026, according to the research.
The whitepaper also suggests that consumer expectations for seamless experiences make ongoing behavioral analysis necessary.
Some of them presumably would also be for healthcare, where b.well Connected Health and Mastercard jointly won Juniper’s Future Digital Health Innovation Award for ‘best digital health management solution.’
Mastercard ID Verification is used on the b.well platform, under a partnership launched earlier this year, to provide real-time biometric identity verification to healthcare organizations through the patient’s smartphone.
In a recent pilot, the combined solution made registration 22 percent faster, and reduced customer drop-off by 35 percent.
Rising financial services tide lifting digital ID supply
A new investment arm of Rapyd has been launched to support startups in digital commerce and payments infrastructure, such as digital identity and risk management companies, from their Seed through Series B rounds.
Rapyd operates a payments network and provides fintech services from the cloud.
The new Rapyd Ventures will also connect startups in payment, identity, open banking and embedded financial service capabilities with its partner network to help them expand more quickly.
Yoti has been accepted into the UK Financial Conduct Authority’s regulatory sandbox to test its digital ID app for financial services applications.
The company will work with Synectics Solutions and embedded financial services provider Prenda Financial Solutions to deliver enhanced fraud screening as part of its digital ID app.
“At the heart of Yoti’s reusable digital identity app and credential management platform is the drive to protect businesses from financial crime and fraud, improve customer journeys and empower individuals to take control of their data,” Yoti Chief Business Officer John Abbott says. “We are delighted to be working with Orenda and Synectics through the FCA’s Sandbox. This secure approach will save time and money and become an innovative blueprint for reusable identity and fraud screening.”
The test results will be reviewed and its success assessed by an allocated sandbox case officer, and the FCA will work with participants to guide their course of action in response.
Prove ID gives web, iOS and Android apps an authentication application with modules for optical character recognition and NFC document-scanning, identity card security element detection, biometric face authentication and liveness, consent collection and agent calls.
Prove ID has been tested and is actively used by several customers, including a healthcare institution but also financial services and investment companies.
Governance steps urged in Ghana, lauded in Europe
The Director of Ghana’s Finance Ministry’s Financial Services Division, Sampson Akilgoh, says the government is committed to improving the flow of remittances into the country, Ghana Business Review writes.
According to Akilgoh, the Bank of Ghana and the Financial Intelligence Centre could improve the situation by issuing guidance on anti money-laundering (AML) and counter terrorism financing (CFT) standards for international remittances. The biometric Ghana Card could also be leveraged to prevent fraud.
Remittances to Ghana were up by 5 percent to $3.6 billion last year, according to World Bank data.
The European Payments Initiative (EPI), meanwhile is seen by Giesecke+Devrient (G+D) as a long-overdue step towards the establishment of a digital payment system for the continent, beyond the control of dominant services providers.
“The time has come for more European sovereignty in payments. The EPI strengthens the relevance and resilience of the European banking sector in retail payments, also on an international basis. In addition, the EPI will facilitate the development of European digital identity solutions and support the Digital Euro,” says Ralf Wintergerst, chairman of the Management Board and group CEO of Giesecke+Devrient. “Experienced service providers are needed to implement the EPI. As a European company with global expertise in payment systems and highly specialized partners such as Netcetera and secunet, G+D is ideally equipped to expertly support the European Payments Initiative and ensure its success.”