Biometrics for Banking and Financial Services Market Segmentation:
Deployment Mode Segment Analysis
The cloud based services dominate the segment and is expected to hold the share value of 58.6% by 2035. The segment is fueled by the need for scalable, cost-effective, and easily integrated security solutions due to the rapid digital transformation in the financial sector. As per the IBEF report in January 2024, in India, cloud adoption is rapidly expanding, and the cloud market is growing at a CAGR of 23.4%. Cloud-based Biometrics-as-a-Service (BaaS) platforms allow banks, especially those with digital-first models, to quickly deploy advanced authentication capabilities like facial or voice recognition without significant upfront investment in on-premise hardware and maintenance.
Component Segment Analysis
Software dominates the component segment and is propelled by the necessity of complex algorithms that drive authentication, liveness detection, and behavioral analytics. This comprises the AI engines that distinguish between a live user and a photo or video replay attack. Government initiatives such as the National Cybersecurity Center of Excellence project on Mitigating Synthetic Identity Fraud represent the dependence on advanced software solutions. The transition to cloud-based biometrics-as-a-service deployments also drives software revenue, as banks are looking for scalable, subscription-based offerings as opposed to huge capital outlays in hardware.
Application Segment Analysis
In the application segment, Customer authentication & onboarding hold the largest share as it is the primary point of interaction between a bank and a customer. The global drive for financial inclusion and digital customer acquisition necessitates fast, secure, and fully remote onboarding. As per the LLOYD Law College report in 2022, nearly 72% of people in the global are using face verification for safe transactions. On the other hand, the massive scale of India's Aadhaar system uses biometrics to authenticate billion citizens for banking services, is a real-world example of the immense volume and demand in this sub-segment.
Our in-depth analysis of the global biometrics for banking and financial services market includes the following segments:
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