The Facts & Factors report has revealed that the global e-KYC market will surpass $2.7 billion or €2.5 billion by 2030. Notably, the market had a valuation of $1.5 billion or €1.4 billion in 2021. The report indicates a projected compound annual growth rate of 21.55 per cent from 2022 to 2030.
The report highlights key market players such as EverCompliant, Acuant, Jumio Corporation, Financial Software & Systems Pvt. Ltd., Onfido, Au10tix, Technologies Ltd., Trust Stamp, 63 Moons, Panamax Inc. and others
These organisations employ various e-KYC techniques, such as video verification, digital ID programs, and identity authentication and matching. They cater to a broad spectrum of end-users, such as insurance companies, financial institutions, banks, government entities, telecom companies and e-payment service providers.
In-Depth Analysis of E-KYC Market Segmentation
The global e-KYC market is expected to be spearheaded by North America, driven by the advanced digital and technical infrastructure in the US and Canada. These countries can implement e-KYC measures efficiently, and consumers have shown a high acceptance rate.
In Europe, the market is poised for growth due to increasing initiatives by national safety and financial regulatory bodies promoting e-KYC practices.
European companies leverage e-KYC systems that offer an improved customer experience and extend their reach beyond regional limits. In the Asia-Pacific region, the banking and financial sectors are witnessing increased investments, which are anticipated to drive significant growth. China’s banking Tier 1 capital has reached $3.38 trillion, indicating its robust position in the industry.
Geographically, the market is divided into several regions. The US, Canada, and Mexico mainly contribute to North America. In Europe, countries such as France, the UK, Spain, Germany, Italy, and Nordic countries (Denmark, Sweden, Norway), as well as the Benelux Union (Belgium, the Netherlands, Luxembourg), play a significant role.
The Asia Pacific region encompasses China, Japan, India, Australia, South Korea, Southeast Asian countries (Indonesia, Thailand, Malaysia, Singapore) and others.
The Middle East & Africa includes Saudi Arabia, the UAE, Egypt, South Africa, and other countries in the region. Brazil, Argentina and other countries contribute to the market in Latin America.
The global e-KYC market is segmented based on deployment mode, product, end-user, and region. The deployment mode includes on-premise and cloud-based solutions. The product segment comprises video verification, digital ID schemes and identity authentication & matching.
The end-users of e-KYC solutions include insurance companies, financial institutions, banks, government entities, telecom companies and e-payment service providers.
Evolution of Customer Verification: e-KYC Replaces Traditional KYC
E-KYC (Electronic Know Your Customer) is the digitised version of the traditional KYC protocol. It is a process that leverages technology to streamline and enhance the customer verification process in the financial industry.
Alongside KYC, another crucial process is AML (Anti-Money Laundering). AML regulations require financial institutions to monitor for and report suspicious activities actively.
KYC-AML audit is critical for banks and financial institutions to prevent money laundering, terrorist financing and other financial crimes.
According to KYCKR, 90 per cent of the largest banks in Europe have received sanctions for money laundering-related violations in the past decade.
AML and KYC compliance mishaps can cost banks millions of dollars. In 2021, organisations spent $1.4 billion or €1.2 billion on AML and KYC services, with fines totalling hundreds of millions of dollars.
