Customer Due Diligence (CDD) Services Market Report 2025

The customer due diligence (CDD) services market size has grown strongly in recent years. It will grow from $3.08 billion in 2024 to $3.39 billion in 2025 at a compound annual growth rate (CAGR) of 10%. The growth in the historic period was driven by the heightened focus on customer identity verification, the rising threat of cybercrime and identity theft, increased scrutiny from regulators and auditors, growing demand from non-banking sectors, and the expanding use of blockchain and regtech solutions.

The customer due diligence (CDD) services market size is expected to see strong growth in the next few years. It will grow to $4.89 billion in 2029 at a compound annual growth rate (CAGR) of 9.6%. In the forecast period, growth is expected to be fueled by stricter regulatory compliance requirements, greater adoption of digital banking, a rise in money laundering and fraud incidents, an intensified focus on know-your-customer mandates, and an increase in cross-border financial transactions. Key trends anticipated include advancements in biometric authentication, the integration of blockchain technology, developments in natural language processing, the adoption of regtech solutions, and progress in cloud computing.

The growing sophistication of fraud, driven by evolving tactics and increasing digital vulnerabilities, is expected to fuel the expansion of the customer due diligence (CDD) services market. The complexity of fraud activities refers to the increasingly advanced and diverse techniques used by fraudsters to manipulate systems and evade detection. This complexity arises from fraudsters continuously adapting their methods to bypass enhanced security measures and exploit new digital loopholes. CDD services help combat fraud by verifying identities, assessing risk levels, and monitoring transactions to detect and prevent suspicious or illegal activities. For example, in February 2024, the Federal Trade Commission, a U.S.-based government agency, reported that consumers lost over $10 billion to fraud in 2023 for the first time, marking a 14% increase from 2022. Losses from investment scams alone exceeded $4.6 billion, a 21% rise from the previous year and the highest among all fraud categories. These trends underscore how rising fraud complexity is driving demand for CDD services.

Leading companies in the customer due diligence (CDD) services market are increasingly developing innovative offerings, such as adverse media screening, to enhance risk detection and deliver more comprehensive client background checks. Adverse media screening involves tracking and analyzing publicly available negative information about individuals or organizations to uncover potential risks tied to financial crime, reputational harm, or regulatory breaches. For instance, in December 2024, Themis International Services Ltd., a UK-based provider of AI-driven financial crime risk management software, launched Tathabbat, Saudi Arabia’s first firm dedicated to anti-money laundering (AML) and know your finance (KYF)/know your customer (KYC) compliance. The initiative aims to strengthen the country’s financial crime defenses in line with Vision 2030 and in preparation for the 2026 FATF evaluation, offering advanced technology and expert services to help institutions maintain transparency, regulatory compliance, and economic stability.

In August 2024, Tuum, an Estonia-based next-generation core banking platform, partnered with ComplyAdvantage Ltd., a UK-based software company specializing in CDD services, to help financial institutions combat financial crime and meet regulatory requirements. The collaboration integrates advanced AI-powered risk detection and CDD solutions directly into banking operations, enhancing efficiency and compliance capabilities.

Major players in the customer due diligence (CDD) services market are Accenture plc., Deloitte Touche Tohmatsu Limited, PricewaterhouseCoopers, Ernst & Young Global Limited, KPMG International Limited, S&P Global Market Intelligence Inc., LexisNexis Risk Solutions Group, Experian plc., Wolters Kluwer N.V., Equifax, Dun & Bradstreet Holdings Inc., ACI Worldwide, Entrust Corporation, GB Group plc., Jumio Corporation, Fenergo, IDnow GmbH, Feedzai, ComplyAdvantage Ltd., Trulioo Information Services, and Shufti Pro Ltd.

North America was the largest region in the customer due diligence (CDD) services market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in customer due diligence (CDD) services report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the customer due diligence (CDD) services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

Customer due diligence (CDD) services involve processes used by businesses - particularly in regulated industries - to verify client identities and assess potential risks, especially those related to money laundering or terrorist financing. These services enable organizations to comply with anti-money laundering (AML) and know-your-customer (KYC) regulations by collecting, analyzing, and monitoring customer information.

The primary types of CDD services include financial due diligence, legal due diligence, tax due diligence, operational due diligence, and others. Financial due diligence entails reviewing a company’s financial records to evaluate its performance, identify potential risks, and confirm its valuation for informed decision-making. These services utilize advanced technologies such as artificial intelligence, machine learning, and blockchain solutions to fulfill compliance requirements, including AML, KYC, and enhanced due diligence (EDD) standards. They are employed across various sectors, including banking and financial institutions, fintech companies, government agencies, and others.

The customer due diligence (CDD) services market research report is one of a series of new reports that provides customer due diligence (CDD) services market statistics, including the customer due diligence (CDD) services industry's global market size, regional shares, competitors with the customer due diligence (CDD) services market share, detailed customer due diligence (CDD) services market segments, market trends and opportunities, and any further data you may need to thrive in the customer due diligence (CDD) services market. This customer due diligence (CDD) services 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 customer due diligence (CDD) services market includes revenues earned by entities by providing services such as customer identification and verification, risk assessment and profiling, and enhanced due diligence. 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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