Advanced Authentication in Financial Services Market Expected to Reach $18.5 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Advanced Authentication in Financial Services Market," The advanced authentication in financial services market was valued at $4.6 billion in 2021, and is estimated to reach $18.5 billion by 2031, growing at a CAGR of 15.3% from 2022 to 2031.

Major players in the advanced authentication in financial services industry have undertaken various strategies to offer the consumers various types of innovative fingerprint payment-based products. In addition, these players are collaborating and partnering with other players to further expand their services in a global level. For instance, in June 2021, Silverfort, the unified identity protection company, announced that it has joined forces with Ping Identity to help customers unify risk analysis of authentication and access attempts across on-premises and multi-cloud environments to detect and prevent identity-based attacks.

Organizations may use a universal risk-based monitoring and evaluation of authentication activity for on-premises and cloud settings by integrating the Silverfort platform with PingFederate. This allows them to proactively stop attacks. Along with protecting previously unprotected on-premises resources including servers, workstations, indigenous legacy software, file shares, and more, the integrated solution also enables the extension of identity-based controls to these systems. These skills have the ability to enforce security policies, identify sophisticated assaults in hybrid settings with unparalleled precision, and ensure a frictionless user experience.

The new device enables self-contained mobile in-person commerce, ideal for banking, social- and aid-workers, healthcare-related transactions, including enrollment, identification, payment transactions, proof of presence/proof of life ID verification for secure, fraud-free transactions, supporting both BIO-key’s fingerprint and contactless PalmPositive identity verification solutions for absolute confidence about exactly who is participating in a transaction. Therefore, these strategies have enhanced the market competition and offering to the customers which is propelling the fingerprint technology market.

Further, in August 2022, ForgeRock announced a strategic partnership with Secret Double Octopus (SDO) to extend ForgeRock’s rich password less and multi-factor authentication (MFA) capabilities to enterprise workstations and infrastructure. ForgeRock will use SDO technology to provide vendors, contractors, and employees with a unified MFA experience. Enterprises can now obtain improved security for workstations, databases, VPNs, and servers thanks to the new ForgeRock Enterprise Connect solution, which integrates easily with all ForgeRock deployment options. This week's Gartner IAM Summit in Las Vegas will feature a demonstration of the new solution at ForgeRock's booth.

Moreover, in January 2022, Fingerprint cards, a biometric company, met Mastercard's increased security criteria for its second-generation T-Shape sensor module. This technology made payment processing easy and convenient for the customer as well as for merchants, with increased security. Thus, such advancements in technology open wide opportunities for future of advanced authentication in financial services market growth.

By enterprise size, the large enterprise segment acquired major advanced authentication in financial services market size in 2021. This is attributed to the increased need to be able to track encryption, increase security and decrease risks is driving the adoption of this technology globally. In addition, it allows businesses to have real-time data available on-demand across all divisions which ensure better decision-making capabilities. In addition, it also helps large enterprises in recording and reporting firm's security.

By region, North America held the largest advanced authentication in financial services market share in 2021. This is attributed to the presence of various biometric payment solution providers and high adoption of the same. Furthermore, a number of efforts have been done by the regional banks to encourage the use of biometric payment cards for transactional purposes. Banks provide a variety of promotions and discounts to draw in both new and returning consumers.  

The advanced authentication in financial services market has been moderately impacted by the COVID-19 outbreak. This is attributed to the fact that during the COVID-19 pandemic, people started wearing face masks and avoided touching any surface because of the fear of spread of virus. This resulted in decrease in demand for various devices such as fingerprint biometric, vein recognition and others. However, the demand for other biometric devices such as face recognition, iris recognition, as it involves zero touch and offers accurate authentication without the spread of virus has increased resulting in advanced authentication in financial services market growth. Therefore, these factors have increased the demand for such devices. Therefore, the COVID-19 had a moderate impact on the advanced authentication in financial services market trends.

Key Findings of the Study

• By solution, the multi-factor authentication segment accounted for the highest advanced authentication market in financial services share in 2021.
• By authentication type, the biometrics segment accounted for the highest share in advanced authentication market in financial services in 2021.
• By region, North America generated the highest revenue in 2021.

The key players profiled in the advanced authentication in financial services market analysis are Fujitsu, Thales, NEC Corporation, Broadcom, Dell Inc., Valid Soft Group, Secur Envoy Ltd., Ping Identity, Mastercard, NetMotion Wireless, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.