It goes without saying that with digitality, there always exists vulnerabilities of digital frauds and crimes. A report from Mordor Intelligence reveals that the identity authentication market is expected to be growing at 13.1 percent CAGR, within the period of 2020 to 2025. We have made a list of the market trends that can be expected this year.
1. Block-chained Identity Verification:
Performing identity authentication by means of block-chain technology is believed to be much efficient and secure, compared to traditional identity authentication. Reason being, the elimination of a ‘middle man’ for carrying out the verification. Consequently, the whole process becomes frictionless. When implemented with adequate means, block-chained identity verification has the potential in taking over much of the Shufti Pro identity verification market.
2. Healthcare industry with identity verification services:
The Healthcare industry is one of those industries with the most data breaches and identity thefts. As per the HIPAA journal, the health industry over the last decade has faced more than two thousand breaches in data, with 49 breaches in the year 2019 alone.
The data comprising the patient’s private information is believed to be worth many times, as that of a normal data record.
With the data in the healthcare industry facing continuous breaches, it was just about time to introduce KYP (Know Your Patient). The healthcare industry for countering identity and data thefts, for having patient identity authentication, will be seen performing the KYP. KYP involves using the government-issued documents and the real-time face of the patient. The two are later cross-matched for establishing authentication.
3. KYP and the GPhC’s guidelines:
General Pharmaceutical Council, after the incorporation of KYP in the healthcare industry, has made the online pharmacies obligatory in performing age verification. This makes the online pharmacies in the United Kingdom, prior to selling the medicines online, to verify the ages of the customers.
4. Organizational BYOD and Identity Verification Market:
‘Bring your own device’ or BYOD was mostly uncommon, until the time the world needed to ‘work from home’. It refers to employees using their own personal computer systems or laptops, instead of using the office equipment, for having their jobs performed.
However, working from the home, with the BYOD enforced, comes with some cyber risks. As reported by the Homeland Security’s Cyber Agency (CISA) department, working from home entails more risks of data breaches, than working traditionally from the offices.
With that said, the identity authentication market is expected to enforce BYOD, by complementing it with biometric verification solutions. This would require the employees to verify their very identities by means of biometrics. An employee would be needed to have face verification or finger scanning be performed, prior to starting the office work or logging into the official platforms.
5. A stricter enforcement for compliance and regulations:
The one-act which actually laid the foundations of the KYC and AML rules and regulations for the banks and financial institutions was the Bank Secrecy Act (BSA) 1979.
The world has been dependent on digitality, more than ever, due to the Corona Pandemic. The concerned authorities have been more rigorous, than they have ever been, for the implementation of AML and KYC authorities.
The beginning of this year saw Europe’s Fifth AML Directive’ come into effect. The fifth AML directive (AMLD5) sets new guidelines for financial institutions. The AMLD5, for enhancing identity authentication, reduces the payment threshold from euro 250 to euro 150. In addition to this, FATF has also expanded its scope. The member countries of FATF are now advised in mandating their art dealers, legal professionals, and virtual assets dealers in performing the AML screenings on the customers
The tightening of the concerned rules and regulations, therefore, can also be expected as a market trend.