Europe BFSI Biometrics Market Size (2024 - 2029)

Europe BFSI Biometrics Market Analysis

The Europe BFSI Biometrics Market size is estimated at USD 2.30 billion in 2024, and is expected to reach USD 4.60 billion by 2029, growing at a CAGR of 15.20% during the forecast period (2024-2029).

• The increasing digitalization of banking services and biometrics enables banks to improve customer engagement levels, which contributes to the growth of this market. The past decade has witnessed substantial transformations in the banking industry as a result of the influence of digitization. The advent of the digital revolution has completely reshaped the manner in which customers engage with their banks and how banks conduct their operations. The introduction of digitization has effectively enhanced the accessibility and convenience of banking services for customers.
• Biometrics in digital banking is increasing as digitalization advances, and banks and financial institutions need to secure authentication systems to enhance customer experience and protect sensitive information. Authentication methods, such as PINs or OTPs, and passwords are easily stolen, forgotten, or compromised. Hence, biometric verification for bank accounts has become increasingly integral to financial industry security platforms. Biometrics helps boost customer trust in banks and improves banking institutions' brand reputation.
• Biometric authentication is rapidly increasing in the banking industry because of the provision of more secure identity verification processes. Changing customer behaviors led to new embedded finance options, such as the emerging buy-now, pay-later models that have gained a significant share. Almost half of Europeans have already used buy-now, pay-later. Poland and Sweden had maximum usage of 62% and 57%, respectively, while the Czech Republic and Austria had 31% and 33%.
• Furthermore, face recognition services were introduced in the retail banking sector for eKYC services, enabling consumers to take a selfie with a smart device and a copy of their identity document, which was shared with a financial institution. The BFSI biometric face recognition technology has been introduced as an authentication method both online and at ATMs, which offers several benefits to consumers and financial institutions as a contactless interface and can reduce instances of fraud and lost cards.
• The high initial investments required for the development of biometric technology, along with the costs of devices like facial, iris, and vein biometry, are primarily due to extensive research and development efforts, as well as the complexities involved in data analysis through embedded devices.
• Additionally, the expenses related to maintenance and data security are crucial, including the need to maintain data security measures such as anti-virus software, encryption-decryption protocols, and other security measures. The costs associated with the biometric systems increase for all the corrective measures and device maintenance. This, in turn, limits banking and financial institutions from investing in these security and identification systems.
• Furthermore, macroeconomic factors such as government regulations on the adoption of the biometrics market, along with the higher interest rate and geopolitical tensions, have affected the demand for biometrics adoption and impacted the market’s growth.

Europe BFSI Biometrics Industry Segmentation

The study tracks the revenue accrued through the sale of biometrics in the BFSI sector by various players in the European region. 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 European BFSI biometrics market is segmented by authentication type (single authentication factor, multi-factor authentication), contact type (contact-based, non-contact based), product type (voice recognition, facial recognition, fingerprint identification, vein recognition, iris recognition), application (door security, ATM, internet banking, mobile banking, payment authentication), and country (United Kingdom, Germany, France, Rest of Europe). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.