In terms of revenue, the Global E-KYC Market is expected to reach USD 1374.0 Million by 2028, growing at a Compound Annual Growth Rate (CAGR) of 21.40% from 2022 to 2028.
The rising identity-related frauds, increased terrorist funding, and consumer purchasing patterns are expected to drive the market's growth during the forecast period.
Key Highlights from Report:
- The Banking Industry sub-segment held a significant share in 2021. This can be attributed to the rising demand for E-KYC software, which has been used to automate payment collection, authenticate KYC papers online, process loan applications without form, and prevent identity fraud. The main share is also ascribed to the declining cost of an optimized approach and the growing use of the traditional KYC process for E-KYC for digital and remote exchange.
- The Financial Institution sub-segment is projected to grow at a considerable Compound Annual Growth Rate (CAGR) during the forecast period. This can be attributed to E-KYCs in distant client onboarding and their value in preventing compliance with and risk exposure to anti-money laundering compliance and risk assessment.
- Asia Pacific is expected to grow at the fastest Compound Annual Growth Rate (CAGR) during the forecast period. The target market's expansion in APAC has been accelerated by elements like rising internal and external risks, increased cloud adoption, and the Internet of Things (IoT).
The essential elements are decreasing paperwork and speeding up completing KYC processes online in real-time with a few easy steps. Government regulators are also concentrating on monitoring and controlling digital currency to end transaction anonymity. In the years to come, it is anticipated that cross-border fund transfers will increase demand for E-KYC throughout India. Additionally, the use of remotely verified E-KYC to cut costs for financial institutions is expanding globally, which is boosting market expansion. Demand for E-KYC is also anticipated to rise in the future due to rising AI and machine applications in analyzing the vast amounts of data produced by digital currency transactions and assisting in reducing false warnings.
The target market is anticipated to grow due to terrorist financing operations and substantial financial losses in the banking, financial services, and insurance (BFSI) sectors. Additionally, it is anticipated that the rising significance of compliance management and the rise in identity-related frauds would fuel the target market's expansion. Furthermore, the target market has expanded due to the rising frequency of cyberattacks against small and medium-sized businesses (SMEs). Increasing cloud adoption, rising internal and external threats, and the Internet of Things (IoT) are a few other aspects anticipated to fuel the target market's expansion.
North America held the most significant shares in 2021. Due to recent identity fraud that the population has experienced, the US is the leading country in North America. In addition, the market share is attributed to the rising need for fraud detection in nations like Canada and the United States.