생체인증 뱅킹 시장 보고서 : 동향, 예측 및 경쟁 분석(-2031년)

The future of the global biometrics banking market looks promising with opportunities in the fingerprint, facial recognition, hand geometry, and iris recognition markets. The global biometrics banking market is expected to grow with a CAGR of 16.4% from 2025 to 2031. The major drivers for this market are the rising need for secure banking transactions, increasing push for compliance with stricter regulations, and growing consumer demand for convenience.

Lucintel forecasts that, within the type category, software is expected to witness higher growth over the forecast period. Within the application category, fingerprint recognition is expected to witness the highest growth. In terms of region, APAC is expected to witness the highest growth over the forecast period. Gain valuable insights for your business decisions with our comprehensive 150+ page report. Sample figures with some insights are shown below.

Emerging Trends in the Biometrics Banking Market

As biometric authentication continues to drive growth in the banking sector, several key trends are shaping up the future for the market, reflecting technological change, consumer tastes, and other regulatory changes forcing the evolution of biometric banking solutions across borders.

• Multimodal Biometrics: With multiple biometric modalities like fingerprint, face, voice, and iris recognition, integration of these multiple biometric modalities is very common nowadays. This technology is used by banks for improved security, to reduce fraud, and create a more convenient user experience. Combining various types of biometric data, financial institutions can ensure the authentication process is both highly accurate and difficult to bypass, hence the key trend in the biometrics banking market.
• AI Biometric Authentication: AI is playing a critical role in improving biometric authentication systems. By using AI algorithms, banks can analyze biometric data more efficiently, thus enabling faster and more accurate verification. AI also helps in detecting anomalies or fraudulent activity, which increases the overall security of banking systems. As AI continues to advance, its integration into biometric banking solutions will drive innovation in fraud detection and customer service.
• Mobile-First Biometric Solutions: With increasing reliance on smartphones for banking, mobile-first biometric solutions are the dominant trend. Fingerprint and facial recognition technologies have become a norm in mobile banking apps, where users can authenticate their transactions easily and securely. The trend is likely to increase further as more people embrace mobile banking due to its convenience and ease of use, especially in emerging markets where smartphone penetration is increasing.
• Regulatory Focus on Data Privacy: There is a heightened regulatory focus on data privacy with the increased adoption of biometrics in banking. Countries are increasingly imposing stricter laws and guidelines in terms of data protection to make sure that biometric data being used by the banks is safe and transparently handled. This makes financial institutions invest more in secure data storage and encryption technology while building confidence among consumers on biometric-based banking solutions.
• Biometric Payment Systems: Biometric payment systems, including biometric-enabled ATMs and POS terminals, are fast becoming increasingly accepted. With an increase in consumer acceptance, more consumers than ever before today seek seamless and password-free experiences using biometric authentication. Therefore, the general growth in acceptance is creating greater awareness towards using biometrics throughout the range of banking services with implications to remodel future digital payment modes to safer, friendlier, and far superior payment channels to those prevalent currently.

New trends are emerging that are transforming biometrics banking as it brings high security, offers better user experience, and provides broader acceptance in biometric authentication technologies. AI, multimodal biometrics, and mobile-first solutions integrated with financial institutions increase innovation and push the market higher. Consumer trust in biometric solutions will further accelerate with regulatory moves related to data privacy.

Recent Developments in the Biometrics Banking Market

The biometrics banking market has experienced tremendous growth where the impact of growing technological sophistication, regulatory transformations, and changing needs for improved and secure bank experience from customers have surged biometric authentication usage in most applied banking services, including mobile applications, ATMs, and point-of-sale systems.

• Increased Usage of Fingerprint and Facial Recognition Technologies: Banks have used fingerprint and facial recognition technologies increasingly for security reasons and to ease the process of authentication. Many banks are incorporating such biometric methods into their mobile banking apps and ATM systems for easier, faster, and secure login procedures. This trend marks a giant leap toward customer experiences that rely on biometrics instead of passwords and PINs, which can easily be hacked and forged.
• Introduction of Voice and Iris Recognition: Banks are expanding their biometric authentication options by incorporating voice and iris recognition technologies. Voice recognition is gaining popularity in voice banking systems, where customers can perform transactions using voice commands. Iris recognition, known for its high level of accuracy, is being implemented in specific markets to provide an additional layer of security for high-value transactions or sensitive financial activities.
• Partnerships and Collaborations with Tech Companies: Most banks are collaborating with technology companies to integrate advanced biometric solutions into their systems. The focus of such partnerships is on combining biometrics with AI and machine learning algorithms to create more robust authentication mechanisms. Working with tech companies allows financial institutions to tap into cutting-edge biometric solutions, thus improving fraud detection capabilities and ensuring that their systems stay ahead of emerging cyber threats.
• Integration with Digital Payment Systems: Biometrics is increasingly being integrated with digital payment systems, enabling consumers to authenticate payments without the need for a card or traditional PIN. This is particularly evident in mobile payments, where facial recognition or fingerprint scanning is used to approve transactions. This development is part of a broader trend toward frictionless, secure payment methods and is transforming how consumers interact with financial services.
• Higher Investment in Biometric Security Solutions: Rising concerns about cyber fraud and threats have led to heavy investment in biometric security solutions by financial institutions. Investments are being made to improve the ability to detect fraud, reduce identity theft, and enhance the overall security of transactions between banks. As the market for biometric technology expands, so does the emphasis on investing in secure biometric solutions that satisfy both customer demands and regulatory compliance.

Recent developments indicate that the biometrics banking market is maturing at a very rapid pace. More sophisticated biometric solutions, such as voice and iris recognition, reflect the increasing demand for secure, convenient, and efficient banking experiences. Financial institutions and tech companies are increasingly collaborating to innovate, and investments in biometric security are transforming the future of banking.

Strategic Growth Opportunities in the Biometrics Banking Market

The biometrics banking market provides strategic growth opportunities in a wide range of applications due to technological advancement and changes in the expectations of the consumer. This is an opportunity that indicates how financial institutions can benefit from the development of biometrics to improve their service offerings, security, and customer satisfaction.

• Mobile Banking Applications: Mobile banking is one of the growth areas in the biometrics banking market. As more and more people use their smartphones for routine banking, financial institutions are able to provide biometric authentication features, like fingerprint and facial recognition, in mobile applications. Security is enhanced while providing a smooth user experience; this will be a catalyst to the adoption and usage of mobile banking services.
• Digital Payment Systems: As digital payment systems grow, the requirement of biometric authentication on the payment system is becoming a prime necessity. Banks can exploit this by initiating biometric-enabled payment systems on ATMs, on POS terminals, and e-commerce sites. Thus, it will move financial institutions forward to offer secure and password-less transactions, improving safety and ease for the customers while making the uptake of digital payment more attractive.
• Fraud Prevention and Risk Management: Integration of Biometric Technology into fraud prevention and risk management is a great growth opportunity. Biometrics will provide banks with the ability to identify fraudulent activities, verify identities, and secure the clearance of transactions. Banks can reduce losses and protect their customers from identity theft and other security breaches by applying biometric authentication in conjunction with AI-powered fraud detection.
• Customer Identity Verification for Remote Banking: With the growth in remote banking, there is a big demand for efficient and secure identity verification systems. Biometrics, for example, with facial recognition and fingerprint scanning, provide a good solution for remotely verifying customers. This is a growth opportunity for banks to enhance their digital services, especially when it comes to opening accounts online, loan applications, and other types of remote transactions.
• Interoperability with Government Identification Schemes: Banks can integrate biometric identification systems used by governments across regions, especially in countries that have such a system to offer seamless authentication for banking services. For example, in India, banks already make use of Aadhaar-based biometric authentication to verify their customers. The interoperability offers improved security and facilitates an easier process while promoting greater financial inclusion among people in these underserved regions.

Such strategic growth opportunities show how enormous the potential of biometric banking is in revolutionizing the financial services industry. Financial institutions will be able to improve security, increase customer satisfaction, and be better prepared to counter emerging threats in the digital banking landscape through embracing biometric technology in mobile banking, digital payments, fraud prevention, remote banking, and identity verification.

Biometrics Banking Market Driver and Challenges

The biometrics banking market is driven by several factors, including technological advancements, increasing demand for secure banking services, and regulatory support. However, there are challenges, such as privacy issues, data security concerns, and the high cost of biometric infrastructure. These drivers and challenges shape the development and adoption of biometric solutions in the banking sector.

The factors responsible for driving the biometrics banking market include:

1. Escalation in Demand for Increased Security: With increased identity theft and cybercrime, the need for more secured or reliable authentication systems grows. Biometric systems have proven a solution to these problems because they cannot be easily copied or counterfeited. With this notion, financial institutions are using biometric solutions to protect their customers' sensitive information from fraudsters, thus swelling the growth of the market.

2. Biometric Technology Advancements: The progress in biometric technology, from enhanced accuracy of facial recognition and fingerprint scanning to others, fuels the market further. These will make biometrics a viable solution for mainstream banking services because they promise greater reliability and efficiency than more traditional authentication mechanisms. As such, the range of biometric solutions continues to expand and will drive future adoption.

3. Consumer Preference for Convenience: Consumers are looking at ways to have more convenient banking experiences, and seamless, frictionless biometric authentication is an alternative to traditional passwords and PINs. The growth in the market would be encouraged because consumers, due to exposure in other applications such as with their smartphones and payment systems, become more familiar with the use of biometrics.

4. Government and Regulatory Backing for Secure Identity Verification: The government and other regulatory bodies have been encouraging banks to adopt biometric authentication systems to enhance security and streamline identity verification processes. In some countries, there is regulation to force the adoption of biometrics by financial institutions for secure verification of customers. It is on these regulatory aspects that the market has been pushed, and data has been protected.

5. Growth in Digital Banking Adoption: The COVID-19 pandemic has led to an accelerated push toward digital banking, which further accelerates the adoption of biometrics as the most secure and convenient form of authentication. With growing interest in online banking platforms, security and user experience improvement through biometric solutions is growing. Mobile banking and digital wallets create an added dimension to the growing demand for biometric authentication.

Challenges in the biometrics banking market are:

1. Privacy Issues and Data Security: The most pressing issue for biometrics banking market growth is privacy and data security in biometric information. As such information is of high sensitivity, the concerns here are related to how it would be stored, processed, and safeguarded. Breach or misuse of biometric information could lead to serious erosion of consumer confidence, thus challenging growth prospects. This makes compliance with the regulations related to the protection of data extremely essential.

2. High Costs of Biometric Infrastructure: The biometric systems can be very costly to many financial institutions, especially those which are small. The initial cost and after setup for running the biometric authentication systems will deter many. However, with time, this can change due to reduced technological costs and vast access.

3. Change Resistance and Consumer Acceptance: Many consumers value the convenience and security of biometrics, but there is still some resistance to new technologies. Consumers may be wary of providing biometric data due to privacy concerns or find the technology too difficult to use or understand. Overcoming these barriers and educating consumers about the benefits of biometrics is key to increasing adoption rates.

The drivers and challenges involved in the biometrics banking market are interconnected in such a way that they shape the way financial institutions approach the adoption of biometric technologies. Although technological advancements, regulatory support, and consumer demand for convenience have driven growth, issues of privacy, costs, and resistance to change remain key obstacles. By taking into consideration the challenges involved and capitalizing on the drivers, the biometrics banking market is poised for continued expansion and innovation.

List of Biometrics Banking Companies

Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies, biometrics banking companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the biometrics banking companies profiled in this report include-

• Techshino Technology
• State Grid Corporation of China
• American Safety Council
• Biometrics Institute
• FIDO Alliance member
• Digital Persona
• BPI Connected Identification
• Ample Trails
• Diebold
• Aulich

Biometrics Banking Market by Segment

The study includes a forecast for the global biometrics banking market by type, application, and region.

Biometrics Banking Market by Type [Value from 2019 to 2031]:

• Hardware
• Software

Biometrics Banking Market by Application [Value from 2019 to 2031]:

• Fingerprint
• Facial Recognition
• Hand Geometry
• Iris Recognition
• Others

Biometrics Banking Market by Region [Value from 2019 to 2031]:

• North America
• Europe
• Asia Pacific
• The Rest of the World

Country Wise Outlook for the Biometrics Banking Market

The biometric banking market has undergone tremendous growth over the past few years, largely due to advances in technology and growing security and fraud prevention concerns. All of these major players worldwide, such as those in the United States, China, Germany, India, and Japan, have invested hundreds of billions of dollars in implementing biometric systems into their banking services. These biometric systems-from facial recognition to fingerprint scanning and iris scanning-will aid in making banking more simple and reliable while increasing security. Unique regional factors, including regulatory considerations and consumer adoption rates, will continue to shape the speed and scope of biometrics adoption within the banking sector in each of these countries.

• United States: In the United States, significant progress has been made regarding the biometrics banking market, with some of the biggest banks adopting biometric authentication for mobile banking applications. Security and streamlined customer experience are mainly emphasized in fingerprint recognition and facial recognition technology. Financial institutions also invest in multimodal biometric solutions, where various identification methods are used in combination. Regulatory bodies have started focusing on defining guidelines to ensure the protection of biometric data to build trust with consumers. As the market matures, it is expected that the U.S. will be at the forefront of innovative biometric authentication solutions, especially in mobile and online banking.
• China: China has been one of the leaders in biometric banking, with a wide application of facial recognition and fingerprint scanning in both physical and digital banking. Major banks and payment platforms in the region have increasingly been integrating biometric authentication systems to make security more convenient for their users. The Chinese government has actively supported the development of biometric solutions while creating a framework to ensure privacy data protection. As consumer adoption grows, there is also an increasing focus on integrating biometric solutions with AI and big data analytics to offer personalized banking services and improve risk management.
• Germany: In Germany, biometric banking solutions are being rolled out cautiously, with a focus on enhancing security in compliance with stringent European Union privacy regulations, such as GDPR. German banks have introduced fingerprint and facial recognition systems, especially for mobile banking apps and ATM access. The adoption rate has been slower compared to other countries, but there is a strong emphasis on the reliability and security of biometric systems, ensuring that they meet high standards for data protection. Future developments may see greater integration with contactless payments, and banks are exploring innovative ways to improve the user experience through biometrics.
• India: In India, the biometric banking market is expanding rapidly due to the widespread use of Aadhaar, a government-issued identification system that includes biometric data. Banks are increasingly using fingerprint and iris scanning for both customer identification and verification processes. The Indian Government has supported the use of biometrics in banking with financial inclusion in rural areas. Biometric authentication was also integrated into the development of mobile banking, but concerns about privacy and data security have obligated regulators to strengthen data protection frameworks as adoption increases.
• Japan: Japan has been at the front line, being one of the first to adopt biometric technology, particularly in banking and financial services. For instance, Japan's largest banks include facial and fingerprint recognition systems when accessing online and in-branch services. Driven by this high-tech culture, embracing biometrics happened quickly among young and adult consumers. Furthermore, the Japanese government has reinforced biometric adoption through strategic initiatives to enhance security and combat fraud. Japan will push forward with the use of multimodal biometrics, which combine several methods of authentication to better achieve enhancement of security while ensuring convenience to users across banking channels.

Features of the Global Biometrics Banking Market

• Market Size Estimates: Biometrics banking market size estimation in terms of value ($B).
• Trend and Forecast Analysis: Market trends (2019 to 2024) and forecast (2025 to 2031) by various segments and regions.
• Segmentation Analysis: Biometrics banking market size by type, application, and region in terms of value ($B).
• Regional Analysis: Biometrics banking market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
• Growth Opportunities: Analysis of growth opportunities in different types, applications, and regions for the biometrics banking market.
• Strategic Analysis: This includes M&A, new product development, and competitive landscape of the biometrics banking market.

Analysis of competitive intensity of the industry based on Porter's Five Forces model.

This report answers the following 11 key questions:

• Q.1. What are some of the most promising, high-growth opportunities for the biometrics banking market by type (hardware and software), application (fingerprint, facial recognition, hand geometry, iris recognition, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
• Q.2. Which segments will grow at a faster pace and why?
• Q.3. Which region will grow at a faster pace and why?
• Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
• Q.5. What are the business risks and competitive threats in this market?
• Q.6. What are the emerging trends in this market and the reasons behind them?
• Q.7. What are some of the changing demands of customers in the market?
• Q.8. What are the new developments in the market? Which companies are leading these developments?
• Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
• Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
• Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?

Table of Contents

1. Executive Summary

2. Market Overview

• 2.1 Background and Classifications
• 2.2 Supply Chain

3. Market Trends & Forecast Analysis

• 3.1 Macroeconomic Trends and Forecasts
• 3.2 Industry Drivers and Challenges
• 3.3 PESTLE Analysis
• 3.4 Patent Analysis
• 3.5 Regulatory Environment

4. Global Biometrics Banking Market by Type

• 4.1 Overview
• 4.2 Attractiveness Analysis by Type
• 4.3 Hardware: Trends and Forecast (2019-2031)
• 4.4 Software: Trends and Forecast (2019-2031)

5. Global Biometrics Banking Market by Application

• 5.1 Overview
• 5.2 Attractiveness Analysis by Application
• 5.3 Fingerprint: Trends and Forecast (2019-2031)
• 5.4 Facial Recognition: Trends and Forecast (2019-2031)
• 5.5 Hand Geometry: Trends and Forecast (2019-2031)
• 5.6 Iris Recognition: Trends and Forecast (2019-2031)
• 5.7 Others: Trends and Forecast (2019-2031)

6. Regional Analysis

• 6.1 Overview
• 6.2 Global Biometrics Banking Market by Region

7. North American Biometrics Banking Market

• 7.1 Overview
• 7.2 North American Biometrics Banking Market by Type
• 7.3 North American Biometrics Banking Market by Application
• 7.4 United States Biometrics Banking Market
• 7.5 Mexican Biometrics Banking Market
• 7.6 Canadian Biometrics Banking Market

8. European Biometrics Banking Market

• 8.1 Overview
• 8.2 European Biometrics Banking Market by Type
• 8.3 European Biometrics Banking Market by Application
• 8.4 German Biometrics Banking Market
• 8.5 French Biometrics Banking Market
• 8.6 Spanish Biometrics Banking Market
• 8.7 Italian Biometrics Banking Market
• 8.8 United Kingdom Biometrics Banking Market

9. APAC Biometrics Banking Market

• 9.1 Overview
• 9.2 APAC Biometrics Banking Market by Type
• 9.3 APAC Biometrics Banking Market by Application
• 9.4 Japanese Biometrics Banking Market
• 9.5 Indian Biometrics Banking Market
• 9.6 Chinese Biometrics Banking Market
• 9.7 South Korean Biometrics Banking Market
• 9.8 Indonesian Biometrics Banking Market

10. ROW Biometrics Banking Market

• 10.1 Overview
• 10.2 ROW Biometrics Banking Market by Type
• 10.3 ROW Biometrics Banking Market by Application
• 10.4 Middle Eastern Biometrics Banking Market
• 10.5 South American Biometrics Banking Market
• 10.6 African Biometrics Banking Market

11. Competitor Analysis

• 11.1 Product Portfolio Analysis
• 11.2 Operational Integration
• 11.3 Porter's Five Forces Analysis
  • Competitive Rivalry
  • Bargaining Power of Buyers
  • Bargaining Power of Suppliers
  • Threat of Substitutes
  • Threat of New Entrants
• 11.4 Market Share Analysis

12. Opportunities & Strategic Analysis

• 12.1 Value Chain Analysis
• 12.2 Growth Opportunity Analysis
  • 12.2.1 Growth Opportunities by Type
  • 12.2.2 Growth Opportunities by Application
• 12.3 Emerging Trends in the Global Biometrics Banking Market
• 12.4 Strategic Analysis
  • 12.4.1 New Product Development
  • 12.4.2 Certification and Licensing
  • 12.4.3 Mergers, Acquisitions, Agreements, Collaborations, and Joint Ventures

13. Company Profiles of the Leading Players Across the Value Chain

• 13.1 Competitive Analysis
• 13.2 Techshino Technology
  • Company Overview
  • Biometrics Banking Business Overview
  • New Product Development
  • Merger, Acquisition, and Collaboration
  • Certification and Licensing
• 13.3 State Grid Corporation of China
  • Company Overview
  • Biometrics Banking Business Overview
  • New Product Development
  • Merger, Acquisition, and Collaboration
  • Certification and Licensing
• 13.4 American Safety Council
  • Company Overview
  • Biometrics Banking Business Overview
  • New Product Development
  • Merger, Acquisition, and Collaboration
  • Certification and Licensing
• 13.5 Biometrics Institute
  • Company Overview
  • Biometrics Banking Business Overview
  • New Product Development
  • Merger, Acquisition, and Collaboration
  • Certification and Licensing
• 13.6 FIDO Alliance Member
  • Company Overview
  • Biometrics Banking Business Overview
  • New Product Development
  • Merger, Acquisition, and Collaboration
  • Certification and Licensing
• 13.7 Digital Persona
  • Company Overview
  • Biometrics Banking Business Overview
  • New Product Development
  • Merger, Acquisition, and Collaboration
  • Certification and Licensing
• 13.8 BPI Connected Identification
  • Company Overview
  • Biometrics Banking Business Overview
  • New Product Development
  • Merger, Acquisition, and Collaboration
  • Certification and Licensing
• 13.9 Ample Trails
  • Company Overview
  • Biometrics Banking Business Overview
  • New Product Development
  • Merger, Acquisition, and Collaboration
  • Certification and Licensing
• 13.10 Diebold
  • Company Overview
  • Biometrics Banking Business Overview
  • New Product Development
  • Merger, Acquisition, and Collaboration
  • Certification and Licensing
• 13.11 Aulich
  • Company Overview
  • Biometrics Banking Business Overview
  • New Product Development
  • Merger, Acquisition, and Collaboration
  • Certification and Licensing

14. Appendix

• 14.1 List of Figures
• 14.2 List of Tables
• 14.3 Research Methodology
• 14.4 Disclaimer
• 14.5 Copyright
• 14.6 Abbreviations and Technical Units
• 14.7 About Us
• 14.8 Contact Us