Facts and Factors has published a new report that suggests that the demand for Video Know Your Customer solutions will triple in the next five years, though the total numbers are still much more modest than they are for some other markets. The report specifically predicts that the market will climb from $154.3 Million in 2019 to $500 million in 2026, based on a CAGR of 14.9 percent for the forecast period.
According to Facts and Factors, the trend speaks to the growing interest in simpler KYC solutions, particularly in the wake of the COVID-19 pandemic, which has accelerated digital transformation. Video KYC technology gives organizations a fast and secure way to verify the identities of new customers, even when they are not able to conduct those checks in person.
That makes Video KYC technology especially appealing (and even necessary) for financial institutions, to the point that Facts and Factors argued that banks that do not integrate the technology into their customer-facing operations will end up losing those customers to their competition. For consumers, Video KYC tech is convenient because it makes their smartphone their primary vector for interactions with their financial institution.
On the corporate side, Video KYC tech can help institutions lower their costs and reduce the number of errors associated with manual onboarding and authentication procedures. Facts and Factors expects the North American region to make up the biggest portion of the Video KYC market, due to high technology adoption rates and the presence of several major technology providers. However, the Asia Pacific region will exhibit the most growth, while the European region will support the industry with favorable government initiatives.
Facts and Factors identified Onfido, IDnow, and Signicat as some of the primary players in the Video KYC space. Adroit Market Research has previously predicted that the broader video analytics market will be worth $11 billion by 2025.