Investments in orchestrated digital identity verification platforms are expected to increase by 80% to foil fraudsters and cybercriminals
Digital identity verification involves the act of using selfie scans, address checks and knowledge-based authentication processes to prove that a person is really the owner of whatever digital credentials are linked to a login or online activity.
With the increasing prevalence of digital services requiring digital onboarding journeys, and the growing requirement for more advanced and robust identity verification systems in the face of rising fraud, investments on digital identity verification technologies are expected to shoot up from today’s US$11.6bn to US20.8bn by 2027, according to a market study by Juniper Research.
According to the research, the identity verification ecosystem and market are currently segmented in three distinctive ways for solutions and services, based on:
- deployment type
- cloud-based solutions
and each pathway is further segmented into biometric and non-biometrics methods.
The non-biometrics solutions are mainly used for fraudulent identity detection, remote customer onboarding, KYC/AML compliance, and in business process automation. Conversely, biometrics are more versatile, offered as standalone solutions and often also in combination with non-biometric
The integration and introduction of AI and ML technologies in identity verification solutions, regardless of the deployment and type of verification, are helping organizations adapt to challenges involving verification practices.
The research by Juniper Research has concluded that, with the growth in omnichannel services, especially mobile-based service provision, and the advent of national electronic identity, the quality of the user experience (with low friction and high personalization) will be the decisive factor in success of verification schemes. Also:
- with the advent of decentralized identity, specialized IDP firms’ role and prominence may be diminishing. However, providers’ offerings will still be relevant, especially when anti-fraud and compliance perspectives are considered.
- digital identity verification orchestration platforms are expected to offer a single application programming interface to allow organizations to build and streamline their workflows according to different KYC/KYB/AML and CFT regulations in different scenarios and, when applicable, markets.