The global market for biometrics technologies in the banking, financial services and insurance (BFSI) sector will rise significantly in the coming years, with an expected compound annual growth rate (CAGR) of nearly 20% from 2016 to 2020, according to market research firm Technavio Research.

The BFSI sector is increasingly focusing on providing the highest level of security to customers by reducing identity duplication, the report said.

With changing consumer preferences and the introduction of new payment methods, it has become imperative for banks to transform the payments and card (PCI) industry digitally, the study said. This has led to the introduction of new payment methods including as PIN cards, mobile wallets, and EMV chips.

And with the advances in technology, the amount of fraud and forgery is also increasing, bringing on the need for solutions that are difficult to duplicate. In addition, the rise in the number of threats from hackers and malware attacks has led the BFSI sector to replace passwords with biometric authentication options such as iris scans, fingerprint identification, vein recognition and voice recognition products.

The global biometrics market in the BFSI sector is highly fragmented, Technavio said, due to the presence of many small regional vendors and large multinational vendors. During the forecast period, established vendors are likely to acquire the niche biometrics vendors to expand their product portfolios and boost their market shares, the firm said.

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