Seamless digital onboarding has become a minimum requirement since consumers expect frictionless and high-security financial procedures.

FREMONT, CA: Digital identification and verification solutions provide businesses with enhanced security and significant opportunities for creating new value for individuals and institutions. In today's rapid digitalization, financial institutions are transforming the way they interact with their customers and employees. This process is drastically changing the scope and processes for identity management and verification. The spending on digital identity verification why business is is expected to reach the mark of USD 16.7 billion in 2026, from USD 9.4  billion in 2021. This 77% growth will primarily be fuelled by the rapidly growing concerns regarding remote onboarding of users and cyber attacks.

To adapt to the changes brought about by the pandemic,  businesses are increasingly digitizing, which reflects the shift in consumer expectations. Seamless digital onboarding has become a minimum requirement where users expect frictionless and high-security processes, requiring the deployment of AI for conducting behavioral analysis. Financial services and banking operations will account for more than 60% of digital identity verification pending in 2026. This rapid adoption of the technology indicates how digital identification and verification solutions are enabling banks to meet strict regulatory compliances in an environment that is becoming increasingly complex. Fully digital know your customers are employed by Digital-only banks and are pretty engaging for users, consequently pressuring traditional banks to deploy similar verification services. Executing the transition while effectively managing customers and their security will determine the overall success of a financial institution. The global volume of Identity verification checks is also expected to exceed 92 billion in 2026, which currently stands at 45 billion. While banking and financial services will be at the forefront of this transformation, the broadening of Identity verification will also find application across other industries due to the rising popularity of remote onboarding and teleworking.