Market Trends of Europe BFSI Biometrics Industry
Fingerprint Biometric to Hold Significant Market Share
- The fingerprint biometric is a prominent type of biometric used in various devices and application fields. The growing penetration of smartphones equipped with fingerprint biometrics is a prominent driver of the market's growth.
- According to Apple, its net sales in Europe for FY 2023 accounted for more than USD 94 billion, a decrease from the record-breaking USD 95.12 billion achieved across the continent. This signified the sixth occasion when Apple's net sales in Europe surpassed USD 60 billion.
- European banks are dedicating most of their budgets to anti-money laundering and KYC by adopting biometrics and automation technologies to reduce KYC and anti-money laundering costs. For instance, Onfido has collaborated with Italian neo-bank HYPE to automate customer onboarding using biometrics and document verification technologies.
- Owing to the increasing demand for biometric payment cards, fingerprint biometrics is witnessing a significant need in the region. For instance, Crédit Agricole de Lorraine, a French bank, rolled out a biometric payment card that allows one to authenticate contactless payments above USD 53 with their fingerprint and without using a PIN.
- Furthermore, with the increasing risk of mag strips that are easily read and copied, countries like Spain have announced that banks will stop using magnetic strips on their cards and replace existing credit cards with fingerprint biometrics cards.
- According to the report published by the European Central Bank, the European Central Bank reported a 10.1% increase in the total number of non-cash payments during the first half of 2023, reaching 67.0 billion transactions, compared to the same period in 2022.
- In the initial six months of 2023, there was a notable surge in contactless card payments, witnessing a growth of 24.3% to reach 20.9 billion transactions compared to the corresponding period in 2022. Furthermore, the overall value of these transactions experienced a significant rise of 25.9% to reach an impressive EUR 0.5 trillion (USD 0.54 trillion).
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Germany Holds Significant Market Share
- Biometric identification technology has been widely adopted in the country, and the banking industry has advanced by replacing conventional systems with biometric ones. More stringent personnel and customer identification procedures are still required to prevent fraud and identity theft within the region's banking sector, which is rapidly going digital.
- Banks in the country are progressively embracing biometrics as a means to verify the identity of customers who access their services. This inclination is not confined to banks alone; other financial institutions are also adopting biometric authentication to ascertain the identity of customers and protect valuable resources. The surge in financial fraud, identity theft, and cyber threats has compelled banks to revamp their identity protocols, and biometrics in the banking and financial sector provide a viable solution.
- The country is witnessing an increase in online payments, with 68% preferring online payments. To improve services and ensure a central intermediation role in the payment ecosystem, financial institutions have been fervently pursuing standardization initiatives as they are witnessing pressure from significant e-commerce and IT giants like Samsung, Google, and Apple.
- Increasing mobile payment transactions, coupled with growing government and private corporations' initiatives toward adopting biometric authentication systems, are expected to drive the market.
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