As Artificial Intelligence keeps getting better, so do identity verification services. One area, in particular, has seen massive growth: face verification services. More and more companies are flocking towards this technology with each passing day. In fact, a top US government agency landed in big trouble by rejecting the face verification system. History has proven time and again that the only companies that survive are the ones that stay ahead of the curve. KYC face verification is the system that will prevail in this digital dawn, and here are the key factors fueling its growth:
Face Recognition Services – Market Size and Trends
In 2019, the global market for face verification services was estimated at $4.35 billion. It is expected to grow at a compound annual growth rate (CAGR) of 14.8%, bringing the valuation to $12.92 billion by 2027. Even though consumer devices, such as smartphones, were already using face scanning to authenticate users, Covid gave it the real push. Whether it be banking, private security, law enforcement, or the consumer sector, face verification is taking all industries by storm.
Rise in Remote Services
The Covid-19 pandemic caused almost all businesses to shift to work from home. This significant change introduced certain identity verification problems. Companies had to exercise limited physical contact while maintaining their data security. Keeping these obstacles and the rising consumer demand for better security in view, face verification services have continued to grow. Even though Covid is almost over, the demand for contactless biometric services is still there. As the world progresses, the need to physically authenticate customer identities will be drastically reduced. Thus, making the investment in face verification services lucrative for all businesses.
Digital Banks
Neobanks, or digital banks, are giving tough competition to their traditional counterparts. They alleviate the need for customers to arrive physically, thus significantly improving the user experience. However, these banks need to deploy another layer of security since they have no physical verification. This is why neobanks are adopting face verification services at a very fast rate. With face scanning, digital banks can give consumers the speed, accuracy, and ease they demand. Furthermore, this technology allows digital banks to save costs on paper processes as well. These savings in all verticals of banking has allowed facial recognition software companies to do so well in this sector.
Increasing Identity Thefts
Although the increase in digital services comes with ease, it also attracts a host of criminal activities. In 2020 alone, there were $56 billion of reported identity fraud losses. These illicit activities and data breaches will only continue to grow and exploit people. Companies are now taking the initiative of using face verification services to curb these activities.
Regulatory Compliances
Another perspective to view this growing identity theft is the increase in regulatory compliance. Most of all, financial institutions are on the receiving end of this matter. Take, for example, GDPR in Europe, FINMA in Switzerland, and FINTRAC compliance in Canada, these are just a few regulations that a company has to follow. Skipping any of the rules in these country-wide restrictions can incur hefty fines. If an organisation tries the route of manual identity verification, it will take countless resources to stay ahead of all these region-specific rules. Therefore, an easier and cost-effective method is to deploy face verification services.
Video Surveillance Systems
Video surveillance is the new norm today for keeping the public safe and secure. According to a study, almost 60% of countries use face verification services in airports. Similarly, 70% of police forces around the world use some form of face scanning in their operations. With the growing use of video surveillance in law enforcement, finance, and even schools and public places, it becomes imperative to adopt face verification services. Such solutions allow the stakeholders to perform large-scale verifications without utilising tons of resources.
Surge in the use of IoT Devices
Internet of Things (IoT) devices are a significant part of how people interact with their environment. The rising interest in smart homes is a prime example of this. In 2020, there were almost 9.7 billion IoT devices worldwide. By 2030, the number of IoT devices will increase to more than 29 billion. One major aspect of the usage of these devices is that consumers want the ease of use. In this scenario, face verification services provide customers with one secure gateway to control all their devices.
Harness the Power of Face Verification Services
Face verification services are here to stay. Police and law enforcement are using them to safeguard the public interest, banks use them to verify their customers, schools and offices use them to track attendance, and last but not least, face verification services allow consumers to manage their devices. With such a wide umbrella of applications, the only choice for any forward-looking company is to deploy a face verification system to stay ahead of the competitors.
