Asia-Pacific BFSI Biometrics Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Asia-Pacific BFSI Biometrics Market Analysis

The Asia-Pacific BFSI Biometrics Market size is estimated at USD 2.10 billion in 2024, and is expected to reach USD 4.60 billion by 2029, growing at a CAGR of 17.5% during the forecast period (2024-2029).

• Banks and financial institutions use innovative security technologies to improve customer satisfaction that complies with legal guidelines, can be maintained safely at an affordable cost, and can improve performance. To provide banks with a more extensive level of security, integrating biometric technology into an established security system contributes significantly to its effectiveness.
• Biometrics automatically identifies customers using biomorphic characteristics such as iris, voice recognition, and fingerprints. In Asia-Pacific, banks also widely use biometrics in their core banking systems to authenticate customer data. To expand their customer base while preventing fraud, several Asian companies have already announced biometric initiatives, product offers, and awards supporting technology-promoting financial services.
• The rigorous adoption of advanced technologies like artificial intelligence (AI) in the banking sector provides an enormous opportunity to upgrade biometrics solutions for fraud prevention. For instance, OneConnect Financial Solutions uses eKYC to provide reliable and quick-to-market digital banking solutions across Southeast Asia. Centrio and OneCosmo are among the solutions that incorporate eKYC. Centrio is digital banking in a box for mobile, while OneCosmo supports lenders with an easily deployable all-in-one digital banking solution.
• In May 2023, in India, about twenty-two financial establishments were authorized to conduct authentication using the Aadhaar biometric ID by the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
• Several leading players are expanding their services in Asia, which is expected to propel the market's growth in the coming years. For instance, in May 2023, IDEX Biometrics announced the expansion in the Asian market with a partnership with DoelPay, which took advantage of the growing demand for biometric cards in Bangladesh. This strategic partnership addresses the interests and needs of cutting-edge payment solutions by introducing advanced biometric payment cards to the country.
• However, biometrics can pose a threat to data security and privacy concerns. In addition, using biometrics in banking and financial services may infringe on people's domestic privacy. It is also possible to abuse biometric data obtained from the processing of those geometries when accessed with an algorithm that extracts templates from original images. This may be a possible challenge for the growth of the market studied.
• Macroeconomic factors such as government regulations on adopting the biometrics market and additional charges implemented by financial institutions to provide such services continue to influence the market's growth. Geopolitical tensions, such as China's rising geopolitical disputes with other countries, also affect the growth of the market studied in the region, as China is among the major suppliers of biometric hardware solutions in the area.

Asia-Pacific BFSI Biometrics Market Trends

ATM Application is Expected to Witness a Significant Growth

Asia-Pacific BFSI Biometrics Industry Segmentation

The study tracks the revenue accrued through the sale of biometrics in the BFSI sector by various players in Asia-Pacific. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyses the overall impact of COVID-19 aftereffects and other macroeconomic factors on the market. The report’s scope encompasses market sizing and forecasts for the various market segments.

The Asia-Pacific BFSI biometrics market is segmented by authentication type (single authentication factor, multi-factor authentication), by contact type (contact-based, non-contact based), by product type(voice recognition, facial recognition, fingerprint identification, vein recognition, iris recognition), by application (door security, ATM, internet banking, mobile banking, payment authentication), by country(China, Japan, India, South Korea, Rest of Asia-Pacific). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.