Revolutionizing digital onboarding: AI’s role in saving banks $900m by 2028
A new report from Juniper Research, a leader in FinTech and payment market analysis, has found that by 2028 the application of AI in identity verification will dramatically reduce the average digital onboarding check time from over 11 minutes in 2023 to under 8 minutes.
This 30% decrease in time is attributed to AI’s enhanced accuracy, which lessens the need for human intervention and repetitive ID photo submissions. Moreover, AI’s role in thwarting emerging threats like synthetic identity fraud is pivotal.
Discover more about this insightful report, titled “Global Digital Identity Verification Market 2023-2028”, or access a complimentary sample here.
Onboarding Spend to Grow Despite Decreasing Costs
The research forecasts a surge in digital verification adoption within the banking sector, particularly in mobile banking, which will fuel digital onboarding revenue growth. Despite the increase in efficiency reducing per-check costs, the expanding volume of verifications, especially in developing regions, is expected to counterbalance this reduction. Consequently, Juniper Research projects a 34% rise in total bank expenditure, from $7.4bn in 2023 to $9.9bn by 2028.
Michael Greenwood, the report’s author, emphasises the significant growth potential in developing markets, driven by increasing smartphone penetration and mobile banking access. He advises verification vendors to adapt onboarding processes by incorporating alternative checks like mobile operator history, enhancing their applicability in emerging markets.
This research suite presents the most comprehensive analysis of the digital identity verification market to date. It includes over 82,000 datapoints across 60 markets, covering a five-year forecast. The suite features a ‘Competitor Leaderboard’ and delves into current and future market opportunities, providing invaluable insights for industry stakeholders.