KYC/KYB spend to hit $22bn globally by 2029
From $9.2bn in 2024
A new study from Juniper Research reveals that non-financial businesses’ global spend on Know Your Customer (KYC) and Know Your Business (KYB) systems will surge by 140% over the next five years.
From an estimated $9.2 billion in 2024, this figure is projected to climb to $22 billion by 2029. This dramatic increase is driven by escalating regulatory pressure, particularly concerning age-restricted goods and services, as governments worldwide enforce stricter rules to protect underage consumers.
Juniper’s research provides the most comprehensive global KYC/KYB systems market analysis. The study covers over 60 countries and includes more than 26,700 market statistics. It offers critical insights into market trends, forecasts for the next five years, and detailed competitor analysis.
The report includes a ‘Competitor Leaderboard’, providing information for businesses seeking to evaluate their options in the rapidly growing KYC and KYB solutions market. It also delves into emerging opportunities and how companies can position themselves for success in the coming years.
The Juniper Research findings underscore the growing importance of KYC/KYB systems across sectors that are not traditionally financial. With increasing regulatory scrutiny, businesses in various industries must invest in robust, automated systems to ensure compliance and protect themselves from costly penalties. The research indicates that those who fail to act swiftly may face severe operational and financial repercussions as penalties for non-compliance continue to rise.
Vital systems
KYC/KYB systems are critical in verifying and authenticating users’ and businesses’ identities. They assess and monitor associated risks, ensuring companies comply with the ever-tightening regulatory landscape. These systems have become indispensable for various industries as they navigate complex legal requirements surrounding consumer identity and risk assessment.
The study, which provides a comprehensive look at the KYC/KYB market, emphasises that regulations mandating age verification for goods such as pharmaceuticals and tobacco are a significant driver behind the surge in spending. With regulations tightening, businesses must invest heavily in technologies that automate age verification and secure transaction processes to avoid severe penalties.
For instance, Texas House Bill 1181 imposes civil penalties of up to $10,000 per day for violations of its age verification requirements in the United States. Failing to comply with such regulations can have disastrous financial consequences for businesses offering age-restricted goods.
As the study notes, companies are under increasing pressure to adopt solutions that efficiently verify customers’ ages without breaching privacy laws or overburdening staff with manual processes.
Daniel Bedford, the report’s author, points out that with age verification becoming essential to business operations, companies must partner with KYC/KYB systems vendors who can provide automated solutions.
“Businesses need to work with vendors that offer systems capable of automating age verification while ensuring compliance with regulations prohibiting storing customer data. As these platforms are not typically regulated this way, choosing the right system is key to ensuring success,” Bedford explained.
The report also highlights that as KYC systems continue to evolve, businesses must ensure that their solutions can scale efficiently. As KYC involves extracting data from government-issued IDs, technologies such as Optical Character Recognition (OCR) have become essential.
OCR enables businesses to quickly extract data from documents like passports and driving licences, significantly streamlining the onboarding process and enhancing operational efficiency. By adopting these advanced solutions, companies can ensure secure transactions while remaining compliant with the latest regulations.
The research further suggests that businesses should prioritise systems that offer seamless integration with existing processes and scalable features. With KYC and KYB becoming increasingly sophisticated, companies that fail to adopt modern solutions risk falling behind in an environment that demands agility and compliance.
As regulations become ever more stringent, companies must embrace cutting-edge technologies and automated solutions to stay ahead of the curve and secure their position in an increasingly regulated world.
Hero image: KYC/KYB systems play a critical role in verifying and authenticating users’ and businesses’ identities. Credit: Ron Lach
