Biometrics for Banking and Financial Services Market Size & Share, by Biometric Type (Fingerprint, Iris, Face, Hand, Voice, Signature); Application - SWOT Analysis, Competitive Strategic Insights, Regional Trends 2025-2037

  • Report ID: 3797
  • Published Date: Jun 13, 2025
  • Report Format: PDF, PPT

Biometrics for Banking and Financial Services Market Outlook:

Biometrics for Banking and Financial Services Market size was valued at USD 6.8 billion in 2024 and is poised to reach USD 27.6 billion by 2037, registering a CAGR of 11.6% during the forecast period, i.e., 2025-2037. In 2025, the industry size of biometrics for banking and financial services is estimated at USD 7.9 billion.

A major driver of biometrics in the banking and financial services market is the surging transition to embedded finance ecosystems, which include open banking platforms and APIs. The transition has pushed banks to reallocate CapEx for tech integration strategies. The table below highlights the five major institutions by CapEx in the market and the YoY growth.

Institution

CapEx (Latest FY, USD)

YoY Change

JPMorgan Chase

$17.2 billion (2024)

+9%

Bank of America

$4.3 billion (2024)

+8%

Citigroup

$8.6 billion (2024)

+6%

Wells Fargo

$5.7 billion (2024)

+7%

Goldman Sachs

$3.4 billion (2024)

+10%

The market's economic outlook is analyzed via macro indicators. for instance, the global banks have reported an increase in the net interest income of USD 3.6 billion by the fourth quarter of 2024. Meanwhile, the St. Louis Financial Stress Index has remained at zero due to the normalized market conditions. Another indicator has been a rapid surge in the volume of digital transactions, surging at 14% YoY. By leveraging the support of the indicators, the market is set to maintain its expansion during the forecast period by leveraging the favorable drivers.

Biometrics for Banking and Financial Services Market Size
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Growth Drivers

Regulatory push for biometric-enabled KYC and digital identity: The global financial regulators are mandating due diligence via biometric digital identity frameworks. For instance, the 2025 guidance released by the FATF has emphasized high-assurance digital ID systems to bolster the trustworthiness of a customer’s identity verification. In response to the regulatory push, major banks such as HSBC and SBI have integrated facial and fingerprint biometrics to comply with the AML/CFT standards, leading to an increase in onboarding by over 19%.

  • National governments driving public-private G2P payments: The national governments are driving the increase in bank-led biometric usage by linking public payments to biometric authentication. The G2P frameworks associated with the World Bank, and implemented by emerging economies such as Indonesia and India, require banks to verify recipients through fingerprints or iris scans at micro-ATMs. The implementation is at its early stages, and is expected to significantly expand and add to the surging volume of biometric transactions by the end of this decade. The trends signify the onset of tremendous opportunities for vendors supplying biometrics for banking and financial services.

Emerging Tech Trends in Biometrics for Banking and Financial Services

The banking sector has been at the forefront of embracing digitalization, creating ample opportunities for tech innovations in biometrics. The combination of facial, fingerprint, and iris recognition is poised to considerably benefit industries reliant on advanced security solutions. The table below indicates the major tech innovations that benefit the biometrics for banking and financial services market:

Technology Name

Industry Using It

Company Example

Statistical Outcome

Voice Biometrics

Banking, Telecom

HSBC UK Voice ID

Prevented £240M fraud; −50% telephone fraud

Behavioral Biometrics (3DS)

Banking, E-commerce

Outseer

Protects 451M accounts; 6× lower fraud

Multimodal (Fingerprint + Face)

Banking, Telco, Health

Numerous banks

62.3% of FSIs deployed ≥1 biometric; Face 31%

AI & ML-Driven Transformation in Biometric Solutions for Financial Services

The biometrics services have been redefined by the convergence of AI and ML. The improvements in biometrics have assisted financial institutions in deploying biometric onboarding workflows, bolstering security. Moreover, ML-supported fraud analytics have been successful in reducing false positives. The table below highlights the measurable impact of AI and ML on key players in the biometrics for banking and financial services market:

Company

Integration of AI & ML in Biometrics

Measured Outcome

Zingly

AI-powered onboarding, adaptive authentication pipelines

26 %+ reduction in development costs/time-to-market

US Large Banks

ML-based fraud analytics on biometric transactions

41% reduction in false positives

Challenges

Escalating complexity associated with biometric data privacy regulations: A key challenge of the global biometrics for banking and financial services sector is the intensifying complexity associated with changing data privacy regulations from one regional market to another. For instance, the GDPR provisions, along with the UK Data Protection Act, have contributed to increasing the compliance costs for BFSI firms by almost 20% YoY. Additionally, the regulatory burden is detrimental to the cross-border payment providers reliant on biometric authentication for KYC, as it increases the risk of penalties.


Biometrics for Banking and Financial Services Market Size and Forecast:

Report Attribute Details

Base Year

2024

Forecast Year

2025-2037

CAGR

11.6%

Base Year Market Size (2024)

USD 6.8 billion

Forecast Year Market Size (2037)

USD 27.6 billion

Regional Scope

  • North America (U.S., and Canada)
  • Asia Pacific (Japan, China, India, Indonesia, Malaysia, Australia, South Korea, Rest of Asia Pacific)
  • Europe (UK, Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Latin America (Mexico, Argentina, Brazil, Rest of Latin America)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

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Biometrics for Banking and Financial Services Market Segmentation:

Biometric Type Segment Analysis

The fingerprint segment is poised to account for a dominant revenue share of 42.5% during the forecast period. A major factor of the segment’s expansion is the continuous advancements in sensor accuracy. Additionally, the heightened integration of fingerprint sensors with micro-ATM platforms has expanded the use cases. The increasing opportunities within the segment are tied to the expansion of the banking sector’s requirement for security solutions against the backdrop of rising threats. Additionally, fingerprint biometrics systems are compliant with legacy banking infrastructure, further expanding the scope of deployment.

Application Segment Analysis

The Know Your Customer (KYC) segment accounts for a leading revenue share of 38.2% throughout the anticipated timeline. Due to the rising regulatory rigor across the world, banks and neobanks have been pushed to adopt biometric KYC solutions to improve customer identity verification. Additionally, biometrics-powered KYC has been able to streamline the onboarding process by significantly minimizing manual document verification. For instance, the KYC model of India enabled by Aadhar integrates iris and fingerprint biometrics, assisting in the opening of millions of bank accounts whilst maintaining strict security standards. As a larger percentage of financial ecosystems transition to digital-first banking, biometric KYC is set to become indispensable within the BFSI sector.

Our in-depth analysis of the global biometrics for banking and financial services market includes the following segments:

Segment

Subsegments

Biometric Type

  • Fingerprint
  • Iris
  • Face
  • Hand
  • Voice
  • Signature

Application

  • Micro-ATMs
  • KYC
  • Merchant Payments System
  • Payment Authentication System
  • Attendance System
Vishnu Nair
Vishnu Nair
Head - Global Business Development

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Biometrics for Banking and Financial Services Market Regional Analysis:

Asia Pacific Market Insight

The APAC biometrics for banking and financial services market is set to hold a dominant revenue share of 35.8% during the forecast timeline. A key factor contributing to APAC’s expansion is the considerably large smartphone penetration, and digital ID initiatives such as e-KTP of Indonesia and Aadhar of India, highlighting the successful use cases of biometrics. The trends have created surging opportunities for global biometrics vendors to provide solutions in APAC.

The China biometrics for banking and financial services market is poised to maintain a leading revenue share during the anticipated timeline. The market’s expansion is supported by the state-backed digital identity initiatives. Additionally, the Digital Silk Road is poised to facilitate vendors in China in supplying biometric solutions across Southeast Asia and Africa.

North America Market Insight

The North America biometrics for banking and financial services sector has exhibited the fastest expansion during the forecast timeline at a CAGR of 16.2%. The expansion of the regional market is attributed to the surging deployment of contactless and multi-factor biometric systems across payment terminals and banking apps. In terms of investments, major financial institutions such as Wells Fargo have been at the forefront of investing in biometric upgrades to meet the changing customer demands.

The U.S. biometrics for banking and financial services market is projected to expand during the forecast timeline. The regional market is driven by stringent regulatory insight and high-value fraud prevention mandates. The deployment of advanced multimodal systems by the major banks in the U.S. under the aegis of the Bank Secrecy Act has expanded the scope of deployments in the regional market. Additionally, with the fintech adoption accelerating, the U.S. market is slated to expand its biometric ecosystem across Tier 1 banks.

Biometrics for Banking and Financial Services Market Share
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Biometrics for Banking and Financial Services Market Players:

    The market re Insight mains competitive and is led by major players from Europe, such as IDEMIA. During the forecast period, the firms in the sector that are leveraging R&D investments to improve the fingerprint sensors and multimodal authentication. The table below highlights the major players of the global biometrics for banking and financial services market:

    Company Name

    Country

    2024 Revenue Share (%)

    IDEMIA SAS

    France

    8.9%

    NEC Corporation

    Japan

    7.6%

    Thales Group

    France

    6.3%

    Fujitsu Limited

    Japan

    5.8%

    Gemalto (Thales)

    USA/France

    5.2%

    3M Company

    USA

    xx%

    Cross Match Technologies Inc.

    USA

    xx%

    Digital Persona Inc.

    USA

    xx%

    Suprema Inc.

    South Korea

    xx%

    BIO-key International, Inc.

    USA

    xx%

    Acuant

    USA

    xx%

    GB Group plc

    UK

    xx%

    Ingenico SA

    France

    xx%

    M2SYS Technology

    USA

    xx%

    Aware, Inc.

    USA

    xx%

    HID Global Corporation

    USA

    xx%

    CrossMatch (HID Global)

    USA

    xx%

    Panasonic Corporation

    Japan

    xx%

    Hitachi, Ltd.

    Japan

    xx%

    Sony Corporation

    Japan

    xx%

    Below are the areas covered for each company in the biometrics for banking and financial services market:

    • Company Overview
    • Business Strategy
    • Key Product Offerings
    • Financial Performance
    • Key Performance Indicators
    • Risk Analysis
    • Recent Development
    • Regional Presence
    • SWOT Analysis

Recent Developments

  • In January 2025, IDEMIA launched its F.CODE biometric payment card, which features a USB-C dongle that assists fingerprint enrollment via mobile phones. The projected shipment of biometric cards is at 37 million by the end of 2028.
  • In August 2024, IDEX Biometrics had commenced the commercial deployment of their biometric payment cards in India. The coverage analyses highlight that with over 1 billion payment cards in the country, the scope of secure payment adoption is projected to expand.
  • Report ID: 3797
  • Published Date: Jun 13, 2025
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

In the year 2025, the industry size of biometrics for banking and financial services is estimated at USD 6.8 billion.

Biometrics for Banking and Financial Services Market size was valued at USD 6.8 billion in 2024 and is likely to cross USD 27.6 billion by 2037, registering more than 11.6% CAGR during the forecast period i.e., between 2025-2037.

Asia Pacific industry is poised to dominate majority revenue share by 2037, driven by increasing emphasis of BFSI companies to offer highest security to customer transactions through the use of biometrics.

The major players in the market are Gemalto N.V., Cyber-SIGN, Inc., Fujitsu Frontech North America, Inc., Ingenico Group SA, and others.
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