E-KYC Market Size, Share, Trends, Opportunities Analysis Forecast Report by 2030
According to Facts & Factors, the global E-KYC Market size in terms of revenue was worth around USD 1571.12 billion in 2021 and is expected to reach USD2792 billion by 2030, growing at a CAGR of 21.55% from 2022 to 2030. The global E-KYC Market is projected to grow at a significant growth rate due to a number of driving factors.
Know your customer, also known as KYC, is an important component of the modern business world, and it has proven to be of great assistance in the fight against fraud cases involving financial considerations. It refers to the method of identifying customers that is used by a variety of organisations that are involved in financial transactions. The Know Your Customer (KYC) process is an obligatory step that must be included in the beginning stages of interaction between a business and a customer. It is one of the few processes that are not only recommended by national anti-money laundering agencies but also regulated by them. These agencies recommend it because it is an effective way to prevent money laundering. E-KYC stands for electronic know your customer and refers to the process of getting to know a customer through the use of digital systems or technologies such as applications, websites, or online links.
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e-KYC is implemented in a variety of forms by different businesses. Some people, for instance, employ techniques based on voice recognition, while others may make use of software that identifies faces. E-KYC is becoming increasingly well-known among younger people as this demographic continues to take advantage of the opportunities presented by the modern world.
It is anticipated that the global market for electronic know-your-customer (e-KYC) will expand as a result of the numerous advantages connected with the application of digital technology, which are advantageous not only for the consumers but also for the commercial entities that implement e-KYC procedures. Due to the fact that e-KYC can be started without the participation of an intermediary, the amount of human resources that are required is significantly reduced. This results in a lighter workload for the employees, who are then free to devote their valuable time to completing other important responsibilities. Customers can benefit from E-KYC because, in general, electronic devices can be swift and quick, hassle-free, provide instant verification, and offer higher accessibility ease. Additionally, E-KYC ensures that customers can comply with essential regulatory requirements in a quicker or easier manner.
It is anticipated that an increasing number of people will choose to use electronic funds transfer for a variety of activities, such as online shopping, automatic equated monthly installment (EMI) deductions, or money transfers for any other personal reasons. This is expected to further propel the growth of the global market. It is anticipated that rising investments in technological advancements, such as those involving the utilisation of cloud computing, connected devices, and artificial intelligence, will act as major growth factors.
E-KYC is extremely prone to experiencing technical problems, and this is especially true on days in which a number of members are attempting to access the website or business application at the same time. Because e-KYC is a digital system, it is extremely susceptible to technical failures brought on by problems such as malware infiltrations, server disruptions, poor internet connectivity, and a variety of other causes, some of which may be more serious than others. The fact that many nations do not have the necessary technical infrastructure to run e-KYC on a large scale, which acts as an inhibitor of growth, is a problem.
The increasing significance of paperless activities may provide opportunities for market expansion, whereas a general lack of awareness may pose a significant barrier to entry.
The global market for e-KYC can be broken down into four different categories: deployment mode, product, and end-user.
Video verification, digital ID schemes, and identity authentication & matching are the three primary product categories that are used to segment the global market. The identity authentication and matching system was the dominant player on the global market in 2021. This was due to the fact that the majority of the businesses that implemented e-KYC relied on the verification of customer identification using national documents that were interlinked to other official accounts. In India, for instance, the Aadhaar e-KYC system is currently the most popular choice for establishing one’s identity. More than 22.84 crore Aadhaar e-KYC had been completed in India as of September 2022. Digital ID schemes are another common method of customer identification and verification.
The global market is divided into the following categories, based on the end-user they serve: insurance companies, businesses, financial institutions, banks, governmental organisations, telecommunications companies, and e-payment service providers. The most significant users of e-KYC are financial institutions, followed by the telecommunications industry and e-payment service providers. e-KYC is one of the processes that must be carried out by any organisation that is involved in financial transactions, particularly banks. Every year, billions of new bank accounts are opened all over the world, and every single one of these new accounts is connected with KYC in some way, either digitally or non-digitally. In India, there were more than 157 crore bank accounts as of March of 2017.
The advanced digital and technical infrastructure that is present in the countries of the United States and Canada enables those countries to roll out e-KYC measures, which are further encouraged by the high acceptance rate among the consumers. It is anticipated that North America will lead the global market for e-KYC, which will primarily be propelled by North America. It is reasonable to anticipate that increased initiatives by national safety and financial regulatory bodies in Europe will be the cause of growth in that region. European businesses use electronic know-your-customer (e-KYC) systems, which not only offer an improved experience to local customers but also extend beyond the boundaries of regional markets. It is anticipated that the increased investments made in the banking and financial sectors of the Asia-Pacific region will assist in the region’s achievement of a high growth rate. The total amount of Tier 1 capital held by China’s commercial banks is currently USD 3.38 trillion.
The global e-KYC market is led by players like Acuant, EverCompliant, Jumio Corporation, Onfido, Financial Software & Systems Pvt. Ltd., Au10tix, 63 Moons Technologies Ltd., Trust Stamp, and Panamax Inc. amongst many others.
- In November 2019, the Securities and Exchange Board of India (Sebi) announced the revival of Aadhaar-based, India’s national identity verification document, e-KYC for transactions in mutual funds. In the notification sent confirming the revival the agency did not mention any upper monetary limit as opposed to the investment limit of INR 50,000 in the previous version
- In January 2022, the Reserve Bank of India allowed the use of video-based authentication for e-KYC systems as an alternative method. These verifications will have to be Aadhaar-based and can be done either offline or online
The global e-KYC market is segmented as follows:
By Deployment Mode
- Video Verification
- Digital ID Schemes
- Identity Authentication & Matching
- Insurance Companies
- Financial Institutions
- Government Entities
- Telecom Companies
- E-payment Service Providers
- North America
- The U.S.
- The UK
- Nordic Countries
- Benelux Union
- The Netherlands
- Rest of Europe
- Asia Pacific
- South Korea
- Southeast Asia
- Rest of Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Rest of Latin America
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