Market Trends of Next Generation Biometrics Industry
Banking and Financial Industry to be the Fastest Growing Sector
- Central Banks are rolling out biometric authentication. Bank of America, JP Morgan Chase, and Wells Fargo allow customers to log in to mobile banking via fingerprint authentication. Voice authentication is also deployed in bank call centres to identify customers. Next-generation biometric authentication can improve customer satisfaction by eliminating the need for passwords and increasing the demand for biometrics in the banking sector.
- A Visa poll from May 2022 found that 86% of users are eager to utilize biometrics to verify their identification while making payments. 70% of respondents who used biometrics said it was simpler to use them, and 46% said they were safer than credentials or PINs. Thus, increasing the adoption of biometric security for internet banking and mobile payments is expected to contribute to the market growth due to increasing banking fraud.
- According to IDEMIA, in July 2021, a pioneer in biometric solutions worldwide, the Indian banking industry is now more eager to implement safe and practical biometric technologies in the post-Covid era. IDEMIA is seeking to provide various cutting-edge biometric protection and transaction solutions. These developments in the BFSI sector are expected to propel next generation biometrics market over the coming years.
- Internet finance and digital operations have become increasingly popular over the past few years due to the increased use of digital technology in the BFSI sector. Many banks now use biometric facial recognition to access accounts through ATMs, eliminating the requirement to punch a card. For instance, in May 2022, Mastercard introduced a biometric payment method for physical establishments that relies on face recognition biometrics instead than smartphones, smart cards, or memorized PINs.
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Asia-Pacific to Witness a Significant Growth Rate over the Forecast Period
- The market in the region is expected to witness significant growth in emerging economies, estimated to grow steadily over the forecast period. Apart from the consumer electronics and government sectors, the healthcare sector is expected to experience growth in the application of next-generation biometrics in this region.
- The region is expected to grow with innovation advancement and the region's widespread use of biometric devices at an affordable price. Additionally, the next-generation biometrics industry is increasing as the government and several business sectors use this innovation to identify individuals.
- The need for biometric identification technologies is rising among end-users, such as gaming retail, the banking and financial industry, hospitals, etc. This demand is having a substantial impact on the market's expansion nationwide. For instance, in June 2021, in conjunction with IDEX Biometrics, the China Construction Bank (CCB) chose to employ biometric credentials in its digital renminbi initiatives. The institution previously made available an app for digital yuan wallets. Users will not require a smartphone to utilize virtual currency owing to the NFC-enabled biometrics smart card.
- The rise of the market in the Asia Pacific countries is fuelled by factors including the economic development of developing nations, rising interest in travel, and increased use of IoT devices. For instance, in November 2021, "Mantra Softech" and the administration of Uttar Pradesh reached an agreement to distribute rations using biometrics. Furthermore, in December 2021. the Indian government implemented "Facial Recognition Technology" (FRT) for traveler registration as part of the "DIGI YATRA SCHEME." These recent events are anticipated to accelerate the expansion of the biometric industry in this area.
- In September 2022, as a continuation of its Asia Pacific growth, Incode, the next-generation identity confirmation platform, revealed that it partnered with TOTM Technologies as a distributor to provide identification solutions, Incode Omni, to the Indonesian market. By introducing world-class, safe, and customer-focused biometric solutions from Incode to the area, TOTM Technologies is dedicated to widening the scope of Indonesian businesses. Thus, these developments in the Asia-Pacific region are expected to propel the next-generation biometric market over the forecast period.
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