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Liminal sees opportunities in financial services onboarding landscape

Liminal sees opportunities in financial services onboarding landscape

Market intelligence firm Liminal has published a list of the top 32 companies working in compliance and fraud prevention for onboarding.

“While many providers are actively developing key capabilities, no single vendor has dominated the market yet, creating a prime opportunity” for younger and smaller companies, according to Liminal’s report.

The Link Index Report for Account Opening in Financial Services evaluated 150 providers in the financial sector. Among the top 32 were Experian, IDnow, Incode, Jumio, Mitek, Onfido, Trulioo and Shufti Pro.

According to Liminal’s data, buyers choose providers according to several factors, including speed and accuracy (94 percent), product capabilities (81 percent) and value for money (71 percent). Almost 90 percent of buyers are also looking for enhanced fraud capabilities.

Buyers can reap a $3.50 return on investment thanks to fraud and compliance cost savings, user-experience improvements and automated processes, the analysis firm claims. In addition, they can expect up to a 17 percent reduction in fraud at account opening and an equal reduction in customer abandonment.

Liminal says $3.2B invested in digital ID firms so far this year

Liminal also issued a fresh report on the digital identity market which showed that macro market conditions have changed since the rush of 2020 and 2021.

While 2021 was a rush of investment in digital IDs, amounting to $71.4 billion in 87 product contracts, 2022 slowed — $8.7 billion investment in 32 deals. This year has so far recorded 32 deals collectively valued at $3.2 billion, according to the Investing in Identity report. Liminal says that the pace of deals may slow later this year.

However, corporate acquisitions will continue.

“The narrative is shifting from growth to value investing, and significant consolidation of digital identity solution providers is anticipated,” the report says.

The report also notes that the digital ID sector has seen an explosion of new companies. In 2016, there were only around 300 firms operating in the industry while that number reached 2000 in 2023, according to Liminal.

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