E-KYB Market Growth, Size, Share, Trends, and Forecast 2030

E-KYB Industry Prospective:

The global e-KYB market size was worth around USD 263.54 million in 2022 and is predicted to grow to around USD 712.87 million by 2030 with a compound annual growth rate (CAGR) of roughly 13.28% between 2023 and 2030.

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E-KYB Market: Overview

E-KYB is the abbreviated form for the electronic Know Your Business ((KYB) model. In general, the KYB process is part of a larger regime that focuses on counter-terrorist financing (CTF) and anti-money laundering (AML) activities. KYB is designed to thwart any attempt at financing or undertaking services from entities that are harmful to the social and economic benefit of the general population and work against national security. KYB, when compared to the know-your-customer (KYC) policy, is relatively new since governments have started realizing that companies and financial institutes are also used by terrorist and extremist groups to finance their activities.

e-KYB is the digitization of the Know Your Business model that helps to ensure that a certain business entity is legitimate business following regional laws and business guidelines. Additionally, the process is also used to ascertain the exact beneficial ownership of the companies participating in the transaction. The process of e-KYB typically entails submitting official company documents along with relevant licenses and registered addresses. The complete names of owners and managers. The data collected is checked with other connected institutes such as banks along with cross-checking company registers. Other important attributes are considered to determine a company’s risk profile before going ahead with the business dealing or transaction.

Key Insights:

• As per the analysis shared by our research analyst, the global e-KYB market is estimated to grow annually at a CAGR of around 13.28% over the forecast period (2023-2030)
• In terms of revenue, the global e-KYB market size was valued at around USD 263.54 million in 2022 and is projected to reach USD 712.87 million, by 2030.
• The e-KYB market is projected to grow at a significant rate due to the increasing incidences of money laundering activities
• Based on end-user segmentation, banks was predicted to show maximum market share in the year 2022
• Based on delivery mode segmentation, cloud-based was the leading SEGMENT 2 in 2022
• On the basis of region, North America was the leading revenue generator in 2022

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E-KYB Market: Growth Drivers

Increasing incidences of money laundering activities to drive market growth

The global e-KYB market is projected to grow owing to the increasing number of cases registered worldwide related to illegal financial transactions and money laundering. These illicit financial transactions are one of the greatest threats to the global economy as dealings worth billions of dollars take place without any informing official governing bodies. Since there is no official data or record of such dealings, the money exchanged can be used for illegal activities such as smuggling and terrorism. As per official reports, the Indian economy loses over USD 15 billion every year due to money laundering. The European Union Agency for Criminal Justice Cooperation (Eurojust) has recorded more than 3000 cross-border money laundering cases in the last 6 years. In 2021, around 600 cases were reported. In July 2023, Saudi official authorities wrapped up a case involving illegal monetary transactions worth USD 1.07 million in cash. The officials have arrested 23 people in this case. Money laundering is not specific to a certain region. It is spread across the globe and in most cases involves cross-border dealings.

The impact of money laundering goes beyond one dimension since it impacts national growth and security at the same time. Illegal or unjustified money becoming pumped into an economy can lead to economic distortion. It also impacts regional credibility and is known to be a leading cause of bureaucratic or political corruption. As the number of currency-washing cases is on the rise, several governments have taken up essential programs to curb such incidents. e-KYB is a crucial part of these programs where no transactions are allowed before following due diligence in terms of knowing the exact origins of the parties involved in financial dealings.

E-KYB Market: Restraints

Concerns over the risk of being exposed to cybercrimes may limit market growth

E-KYB involves the use of digital systems to share company-related information. The data shared includes confidential information related to business personnel and financial standing such as profit and loss and other data. With any digital technology, the risk of cybercrime is always high, and e-KYB systems are no exception. This could impact the e-KYB industry growth. However, the risk is even higher in electronic-Know Your Business due to the higher sensitivity of data involved in these conversations. Hackers are becoming exceedingly technologically advanced. They are steadily evolving to counteract all technology-based developments and systems meant to help regulatory bodies. As per official reports, more than 494 million ransomware attacks were reported in 2022 alone across global organizations.

E-KYB Market: Opportunities

Increased bank transactions to create higher growth opportunities

Banks are the most vulnerable to money laundering and terrorist financing activities. Banks across the globe deal with multiple clients every day and transactions worth over a billion dollars take place every hour. With globalization and surging cross-border financial dealings, banks form the backbone of a national economy. With the increasing number of bank-led transactions ranging from a few thousand dollars to multi-billion dollars, the scope of the e-KYB market is expanding rapidly. Banks have to consistently work toward mitigating any form of financial risk. They also have to invest in detecting and reporting fraudulent activities along with ensuring complete compliance with regional laws and regulations. e-KYB can help businesses make the right decisions in optimum time. The digital method to ensure business credibility has the potential to improve the overall operational efficiency of a bank.

Growing awareness and strategic partnerships between companies to promote further growth

With the growing awareness of the benefits of e-KYB for all the parties involved in business transactions, the demand for e-KYB is likely to reach new heights. In December 2020, SEON, a company that fights against fraud, announced a partnership with TruNarrative, a UK-based RegTech platform. The latter can now use extensive data collected by SEON to make informed onboarding-related decisions. TruNarrative conducts extensive transactional monitoring, customer onboarding, financial crime detection, and other compliance processes.

E-KYB Market: Challenges

Providing efficient results in emerging countries could be a challenge

The global e-KYB market players are expected to face challenges when entering new markets, especially emerging economies. Most of the countries with volatile political structures do not have accurate data related to company ownership and financial recording. Moreover, in cases where governments are corrupt with no proper implementation policies for businesses to record accurate company information, e-KYB may not be as effective as expected.

E-KYB Market: Segmentation

The global e-KYB market is segmented based on end-user, delivery mode, and region.

Based on end-user, the global market segments are financial institutions, banks, telecom companies, e-payment service providers, insurance companies, government entities, and others. In 2022, the highest-performing segment was banks mainly due to the institutes being the hub for all forms of small and large-scale transactions. Major national banks work with some of the largest business corporations putting them at a higher risk of fraudulent activities. In the financial year 2021 to 2022, Indian banks registered around 229 frauds per day.

Based on delivery mode, the e-KYB industry segments are on-premise and cloud-based. In 2022, the highest growth was observed in the cloud-based segment since most of the participating companies generally tend to collaborate with e-KYB service providers to leverage the benefits of their systems. Taking assistance from third parties has higher benefits as companies do not have to invest in developing and maintaining in-house systems. Moreover, e-KYB service providers work with the aid of skilled professionals and experts in the field of information technology and regional laws. Around 90% of the companies in the world use some form of cloud services.

E-KYB Market: Report Scope

E-KYB Market: Regional Analysis

North America to witness the highest growth rate during the upcoming period

The global e-KYB market will witness the highest growth rate in North America with the US contributing the highest regional share. The principal reason behind higher growth is the presence of major private banks and financial institutions in New York. This includes entities such as JPMorgan Chase, Bank of America, Capital One, Well Fargo, Goldman Sachs, and many more. These banks cater to the needs of the majority of businesses across the globe. The US, on the other hand, is one of the most dominant global leaders. The US economy currently stands at USD 27 trillion making it one of the most targeted countries in terms of bank fraud and money laundering.

The world’s biggest bank at the time, Wachovia Bank allowed the Mexico cartel to launder money worth USD 390 billion between 2004 and 2007. This incident is considered one of the world’s most shocking money laundering cases in the world. These factors have led to more promptness among financial institutions and banks to adopt e-KYB measures to protect themselves, their companies, and the regional economy in general against fraudulent monetary transactions. Asia-Pacific is expected to grow at a rapid rate. It is home to some of the fastest growing economies and as foreign investments continue to rise, regional governments and companies must mitigate their risks to prevent harmful financial dealings.

E-KYB Market: Competitive Analysis

The global e-KYB market is led by players like:

• LexisNexis Risk Solutions
• Mitek Systems
• Thomson Reuters
• Dun & Bradstreet
• Refinitiv
• Signzy
• Dow Jones Risk & Compliance
• Jumio
• Experian
• NICE Actimize
• Accuity
• Trulioo
• Compliance.ai
• Cognizant
• GBG (Global Banking Group)

The global e-KYB market is segmented as follows:

By End-User

• Financial Institutions
• Banks
• Telecom Companies
• E-Payment Service Providers
• Insurance Companies
• Government Entities
• Others

By Delivery Mode

• On-Premise
• Cloud-Based

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa