Advanced Authentication in The Financial Service Global Market Report 2024

The global advanced authentication in the financial service market has grown rapidly in recent years. It will grow from $5.71 billion in 2023 to $6.53 billion in 2024 at a compound annual growth rate (CAGR) of 14.3%. The historical growth in advanced authentication in the financial services industry can be attributed to several factors. These include a focus on regulatory compliance, the ongoing digital transformation in the finance sector, the widespread proliferation of mobile banking, increasing consumer demand for enhanced security measures, and a growing emphasis on user convenience and experience.

The global advanced authentication in the financial service market is expected to see rapid growth in the next few years. It will grow to $11.32 billion in 2028 at a compound annual growth rate (CAGR) of 14.7%. The anticipated growth in the forecast period for advanced authentication in the financial services industry can be attributed to various factors. These include the expansion of open banking, the globalization of financial services, a continuous rise in cyber threats, the adoption of tokenization for enhanced payment security, the increasing volume of digital transactions, and ongoing regulatory evolution in the financial sector. Major trends expected in the forecast period include the adoption of biometric authentication, the growth of multi-factor authentication (MFA), the increased adoption of risk-based authentication approaches, initiatives for secure customer identity verification, the promotion of passwordless authentication, and the exploration of blockchain for identity management within the financial services sector.

The upsurge in non-cash transactions is poised to drive the adoption of advanced authentication within the financial services market. The convenience associated with conducting cashless financial transactions remains a compelling factor for customers, who benefit from the seamless experiences offered by digital payments. Emphasizing security, non-cash transactions employ tools such as encryption and biometric protection to ensure robust safeguards. Notably, as per a report from the National Informatics Centre in April 2023, India witnessed a staggering year-on-year growth of 72% in 2021, processing over 1.49 billion transactions valued at INR 5.6 trillion in June 2021. By the conclusion of 2022, the total transaction value via UPI (Unified Payments Interface) surged to INR 125.95 trillion, marking a significant 1.75 times year-on-year increase, constituting nearly 86% of India's GDP in FY22. Hence, the escalating volume of non-cash payments serves as a catalyst for the growth of advanced authentication in the financial services market.

The proliferation of cyber threats stands as a catalyst driving the adoption of advanced authentication within the financial services sector. Defined as malicious attempts to compromise the integrity, confidentiality, or availability of digital systems and data, cyber threats prompt an increased focus on advanced authentication measures to fortify cybersecurity defenses. Notably, reports from AAG in September 2023 revealed that 39% of UK companies experienced cyber-attacks in 2022. Moreover, cybercrime impacted approximately 53.35 million individuals in the United States during the first half of 2022. These escalating cyber threats underscore the imperative need for robust advanced authentication measures in the financial services landscape to mitigate evolving risks and bolster security.

Technological advancements represent a pivotal trend gaining momentum within the realm of advanced authentication in financial services. Leading companies within this sector are driving innovation, research, and development efforts to fortify their market standing. Notably, in May 2022, Mastercard, a US-based financial services company, introduced biometric payments to elevate the checkout experience. This innovative biometric checkout service allows customers to enroll via a merchant's or identity provider's app, ensuring swift and secure transactions by enabling customers to pay with a smile into a camera or wave their hand over a reader. This technology embodies a seamless and secure checkout process, marking a significant advancement in the financial services domain.

Leading firms within the advanced authentication segment of the financial services market are actively innovating, with a focus on developing groundbreaking products such as biometric payment cards. These cards, integrating biometric technology, aim to expand customer reach, drive sales, and boost revenue streams. A biometric payment card represents a credit or debit card equipped with biometric capabilities to heighten security and authentication during transactions. Notably, in January 2023, Giesecke+Devrient, a Germany-based provider specializing in security technologies, introduced their biometric payment card. Leveraging G+D's extensive experience, the card offers distinctive features such as a compelling solution tailored for high-value customers, an enhanced user experience, secure authentication, and a robust onboarding process. Noteworthy aspects of these biometric cards include their production through hot lamination, combined with a certified secure element meeting EMV (Europay, Mastercard, and Visa) and CC (Common Criteria) standards, distinguishing them in the market.

In December 2021, Aware Inc., a US-based biometrics products and solutions provider, completed the acquisition of Fortress Identity for an undisclosed sum. This strategic acquisition is poised to augment Aware's cloud-based identity proofing capabilities with enhanced onboarding, verification, and authentication technologies. These advancements aim to support companies in meeting stringent financial compliance requirements while mitigating risks associated with fraud. Fortress Identity, a US-based firm renowned for its Authentication as a Service platform employing Digital ID Verification and Biometric Authentication, aligns with Aware's strategy to bolster and broaden its suite of offerings in the authentication space. This acquisition reinforces Aware's position in delivering comprehensive and sophisticated solutions, ensuring robust identity authentication and risk reduction for financial services and beyond.

Major companies operating in the advanced authentication in the financial service market report are Fujitsu Limited, Thales Group, NEC Corporation, Broadcom Inc., Safran Identity And Security SAS, Dell Technologies Inc., Lumidigm Inc., Validsoft Limited, Pistolstar Inc., SecurEnvoy Limited, CA Technologies Inc., OpenText Corporation, Ping Identity Corporation, Mastercard Inc., NetMotion Wireless Inc., Aware Inc., HID Global Corporation, RSA Security LLC, Gemalto N.V., Vasco Data Security International Inc., Entrust Datacard Corporation, OneSpan Inc., Crossmatch Technologies Inc., AuthenTrend Technology Inc., Bio-Key International Inc., Centrify Corporation, Cognitec Systems GmbH, CyberArk Software Ltd., Daon Inc., Deepnet Security Ltd., Duo Security Inc., FacePhi Biometria S.A., Feitian Technologies Co. Ltd., Fingerprint Cards AB

North America was the largest region in the advanced authentication market for financial services in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the advanced authentication in the financial service market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the advanced authentication in the financial service market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary types of advanced authentication in the financial services industry include smartcards, biometrics, mobile smart credentials, tokens, and other innovative methods. Smartcards are plastic cards with embedded microprocessors used for various purposes, such as personal identity verification and financial transactions. Advanced authentication solutions in the financial services sector cater to the security needs of both large enterprises and small and medium-sized enterprises.

This report provides advanced authentication in the financial service market statistics, including advanced authentication in the financial service industry global market size, regional shares, competitors with an advanced authentication in the financial service market share, detailed advanced authentication in the financial service market segments, market trends and opportunities, and any further data you may need to thrive in the advanced authentication in the financial service industry. This advanced authentication in the financial service market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The advanced authentication in the financial service market includes revenues earned by entities by providing advanced authentication in financial services that prevent third parties from impersonating a legitimate user and accessing the system. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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