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Customer verification service is a process used by business organizations, especially those of online businesses to verify whether the details provided by customers are accurate and stand up to the point of fact or not. With rapid development and changes in digitalization, many businesses have started to offer their products and services online. Customers are also quick to adapt to the new way of shopping and browsing through the online portals without actually leaving their homes and scrolling through the products while sitting at home.
Though this might look as an upgrade in the digital supremacy, it also has a downside. This increased usage of online services has led to many fraudulent activities in the past and is still taking place at one particular point or another. To curb these frauds, customer verification services have been introduced. Its main purpose is to protect the users from fraudulent activities, which are committed by other users and also helps secure customer’s privacy.
In addition, the demand for customer verification services has been growing in the recent years since businesses are unaware of their customers at times and more importantly, they do not wish to pay fines and penalties imposed by the government in case any fraudulent activity takes place. This seems to imply that there would be higher demand for customer verification services in the near future since more businesses are trying to enter and establish their presence online.
The global customer verification services market is segmented on the basis of component, deployment model, enterprise size, and region. Based on component, the customer verification services market is bifurcated into solutions and services. In terms of deployment model, the market is categorized into on-premise and cloud. On the basis of enterprise size, the market is segregated into large enterprises and small & medium enterprises. Geographically, the market is analyzed across several regions such as North America, Europe, Asia-Pacific, and Latin America, Middle East & Africa (LAMEA).
Key players operating in the global customer verification services industry include Onfido, Jumio, ID Insight, IDology, Trulioo, Mitek Systems, Socure, Acuant, VIX Verify, and IDNow. These companies have adopted several strategies such as product launches, partnerships, collaborations, mergers & acquisitions, and joint ventures to strengthen their foothold in the global customer verification services market.
Increase in number of identity related fraudulent activities and data breaches among enterprise and rapid adoption of digital/electronic customer verification services drive the growth of the market. In addition, rise in adoption of customer verification services among SMEs propels the growth of the market. However, inconsistency in customer verification services and solutions provided by vendors hamper the growth of the market. Contrarily, increasing digitalization with initiatives, such as eID and smart infrastructure, can be perceived as an opportunity for the customer verification services market.
As businesses have moved online, customers’ personal details have also been transferred and stored online. In addition, growing online services across the globe have created numerous opportunities for cyber attackers and fraudulent activities, thereby driving the growth of the market. Furthermore, there has been an increase in fraudulent activities and identity theft during the last decade. This rapid increase in fraudulent activities has paved a way for customer verification services to emerge and evolve, which propels the growth of the market. Meanwhile, initiatives taken by governments and enterprises with focus on digitalization and implementation of new technologies, such as AI, ML, and automation, in customer verification services have started contributing to lucrative opportunities for vendors who provide customer verification services.
SMEs are majorly embracing customer verification services to compliance commitments and dangers related to extortion of data. The manual and traditional process of confirming is time-consuming. SMEs find customer verification services software a basic, instinctive, low cost, hassle-free, and secure solution to meet their growing demands, thereby enhancing the growth of the market. SMEs are more inclined to cyber extortion due to restricted assets, accessibility of IT personnel, and budget limitations. Therefore, to reduce number of cyber-attacks and fraudulent activities, various SMEs are adopting customer verification services, thereby enhancing the growth of the market.
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