The Global Signature Verification Market was valued at USD 957.24 million in 2019, and is expected to reach USD 4,795.57 million by 2026, registering a CAGR of around 25.3%, during the period of 2021- 2026. Several organizations are shifting toward remote working models due to the COVID-19 pandemic and consequent lockdowns imposed by governments across various countries. As a result, they are adopting electronic signing, thus, increasing the demand for signature verification software for identifying and authenticating business transactions within legal frameworks.
- Signatures are uniquely used for verification by entities, such as governments, businesses, and financial organizations, for authorizing transactions and documents. They provide an authentication method, which uses the dynamic feature of a person's handwritten signature and its characteristics to authenticate their identity.
- In recent years, biometric signature verification (BSV) has been seeing renewed interest in line with the increasing need for security and individual verification and authentication across banks, offices, institutions, or other commercial organizations. Offline signature processing is typically used in office automation systems that validate cheques, credit cards, contracts, and historical documents. Also, dynamic signature verification (DSV) that compares signatures based on various parameters, such as velocity, acceleration, pressure, and geometrical shape, of the biometric sample is gaining traction worldwide and is expected to hold a significant market growth in coming years.
- Further, most governments around the world, especially in the United States and EU nations, have enacted legislation, which recognizes digital signatures or electronic signatures as equivalent to hand-written signatures if produced in line with specific requirements (for instance, the EU Directive on Electronic Signature 1999/93/Ec of the European Parliament and Council).
- Regarding the verification of e-signatures, complexities increase even further. For instance, there are multiple ways of applying countersignatures, multiple different signatures and document formats, determining whether the signer was authorized to sign, historical verification of signatures, etc.
Key Market Trends
Healthcare Industry to Witness Significant Growth
- Healthcare is a heavily regulated industry that requires a lot of documentation. It is an industry where verification by signature is a legal requirement. The increasing transaction frauds and security breaches in the sector are propelling the demand for signature verification solutions that help prevent the loss of imperative data.
- According to the 2020 Healthcare Data Breach Report, healthcare data breaches of 500 or more records were reported at a rate of more than 1.76 per day. The year 2020 saw 642 significant data breaches reported by healthcare providers, health plans, healthcare clearing houses, and business associates of those entities, 25% more than what was recorded in 2019.
- The healthcare sector is allowed to use e-signatures legally in compliance with regional regulations, such as the Healthcare Insurance Portability Accountability Act (HIPAA) and the Uniform Electronic Transactions Act.
- There is also a constantly growing need to create a good healthcare infrastructure for boosting the patient care, minimizing expenses, and preventing loss or misplacement of equipment or records, while eliminating any possible errors. The use of e-signature solutions helps in applications, such as client documentation, medical process approvals, medical bill payment, signing medical records, issuance of medical receipts, and improvement of patient satisfaction.
- Vendors in the market are partnering to launch e-signature and document management solutions specific to the healthcare industry, thus driving the market for signature verification. In November 2020, Cologne-based m.Doc GmbH, a smart health , and Validated ID, digital an identification provider, announced that they had developed a digital signature integration in order to simplify analog signature processes.
United States to Occupy a Major Share in the Signature Verification Market
- The United States holds the largest share when it comes to the signature verification market, due to the presence of major players, such as Biometric Signature ID, Certify Global Inc., and ISign Solutions Inc, which offer paperless, secure, and trusted identity assurance.
- Signature verification provides an easy way for identity protection because of its high encryption and low susceptibility to malware. Adding to this, the Digital Signature and Electronic Authentication Law (SEAL) by the US Senate makes signature verification mandatory for all forms of digital transactions.
- Companies are producing new products and services that are transforming banking operations. For instance, recently, Finastra, a fintech company, developed an eSignature solution for US banks, which claims lesser processing time and enhanced customer experience by reducing paper, storage cost, and courier fees. The similar boom of fintech companies and their range of offerings are enabling the market growth.
- A significant number of M&As are also being witnessed by the region. Texas-based "BioMetric Signature ID" and Mitek, a leader in digital identity verification solution, partnered in February 2019 to digitally validate the authenticity of government issued identity documents during enrollment. Collaborations like these highlight the use cases of signature verification in North America.
The signature verification market is consolidated as the major share of the market is occupied by top players. Moreover, the new player finds it difficult to enter the market due to the strong dominance of existing players. Some of the key players include Biometric Signature ID (J C Lads Corporation), CERTIFY Global Inc., Ascertia Ltd., Kofax Inc., Entrust Datacard Corporation, Odyssey Technologies Limited, Scriptel Corporation, among others.
- February 2021 - Parascript launched FormXtra.AI 8.0. The solution features NLP-based Full-page Handwriting Transcription and automates business document processes with remarkable precision, reduces human data entry, and reduces time-consuming configuration and production management responsibilities.
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