Global spend on KYC systems to hit USD $22bn by 2029
A study by Juniper Research has revealed that non-financial businesses worldwide are expected to spend USD $22 billion on Know Your Customer/Know Your Business (KYC/KYB) systems by 2029, representing a 140% growth from 2024.
The research highlights that this significant growth in spending will be driven primarily by the enforcement of stringent regulatory measures aimed at protecting minors across various industries. KYC/KYB systems serve to verify and authenticate users and businesses while assessing and managing associated risks.
The report details how stringent regulations present challenges for businesses dealing in age-restricted products, such as pharmaceuticals and adult content services. In the United States, for example, Texas House Bill 1181 imposes civil penalties of up to USD $10,000 per day for non-compliance with age verification requirements. Enterprises that fail to implement adequate age-verification tools face severe repercussions.
Daniel Bedford, Report Author at Juniper Research, emphasised the necessity for businesses to collaborate with KYC/KYB vendors capable of automating age verification without storing customer data. "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," he stated.
The study suggests that as KYC protocols require extracting data from government-issued identification documents, non-financial organisations should adopt systems equipped with Optical Character Recognition (OCR) technology. This capability allows for the swift extraction of data from documents like passports and driving licences, facilitating efficient customer onboarding, secure transactions, and adherence to regulatory compliance.
The Juniper Research research suite provides extensive assessment and projections for the KYC/KYB systems market over the next five years, encompassing over 60 countries. The comprehensive suite includes a "Competitor Leaderboard" and evaluates potential future market opportunities, supported by more than 26,700 market statistics.
