Hampshire, UK – 25th November 2024: A new study by Juniper Research, the foremost experts in the fintech and payments market, found that the global spend on Know Your Customer/Know Your Business (KYC/KYB) systems from non-financial businesses will grow by 140% over the next five years; rising from $9.2 billion in 2024. This growth will be largely driven by regulators enforcing strict requirements to protect underage consumers across diverse industries.
KYC/KYB systems verify and authenticate users and businesses, while assessing and monitoring their risk.
Find out more: Global KYC/KYB Systems Market 2024-2029, or download a free sample.
Looming Penalties Increase Reliance on KYC Systems
The report found that the proliferation of stringent regulations has caused friction for businesses offering age-restricted goods and services, such as medication or online adult content. In the US, the Texas House Bill 1181 for example, enforces civil penalties of up to $10,000 per day for violations of its age verification requirements. Failure to comply with these regulations by not providing sufficient age-verifications tools will have catastrophic consequences for enterprises.
Report author Daniel Bedford added “As businesses increasingly need to verify age, they must partner with KYC/KYB systems vendors that can automate age verification, while ensuring compliance by not storing customer data. As these platforms are not used to being regulated in this way, picking the right system is critical to success."
KYC Systems Must Scale Efficiently
As KYC requires data to be extracted from government-issued IDs, the research recommends that to comply with new regulations without creating onerous manual work, non-financial businesses should adopt systems that leverage capabilities such as OCR (Optical Character Recognition). OCR quickly extracts data from passports or driving licences; streamlining customer onboarding, ensuring secure transactions and helping enterprises maintain regulatory compliance.
About the Research
The new research suite offers the most comprehensive assessment of the KYC/KYB systems market to date; providing critical analysis and five-year forecasts for over 60 countries. With over 26,700 market statistics included, the suite also provides a ‘Competitor Leaderboard’ and an examination of future market opportunities.
Juniper Research has, for two decades, provided market intelligence and advisory services to the global financial sector, retained by many of the world’s leading banks, intermediaries and providers.
Please contact Sam Smith, Press Relations
T: +44(0)1256 830002
E: sam.smith@juniperresearch.com
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