Report Overview
Account opening solutions for the financial services industry are critical to ensuring compliance and preventing fraud, enabling companies to effectively identify new users during customer registration and deliver a seamless onboarding experience. The primary purpose of these solutions is to facilitate mandatory compliance checks, with a particular emphasis on the Know Your Customer (KYC) process. Financial service providers require robust data quality and a comprehensive platform that can handle fraud prevention and compliance, offering the highest level of assurance without compromising user experience or regulatory compliance.
Solution providers must address several challenges in the market to meet and exceed buyer expectations. Manual review processes and user friction, limited platform capabilities, and inaccurate or incomplete data sets are significant obstacles that must be overcome. According to a recent survey, when financial institutions seek an account opening solution, 94% of businesses prioritize speed and accuracy, 81% prioritize product capabilities, and 71% prioritize value for money. Vendors must address these critical purchasing criteria to gain a competitive advantage in the market.
Although numerous vendors claim to offer solutions for account opening compliance and fraud in financial services, only 32 solution providers (22%) currently possess the necessary product capabilities to meet buyer demands. While large incumbents currently dominate the market, new and innovative solutions and regionally-focused vendors with access to valuable data sources are emerging.
Financial institutions that adopt market-leading compliance and fraud solutions for account opening can expect a significant return on investment (ROI), with an estimated return of $3.50 for every dollar invested. Therefore, choosing the right vendor is crucial for financial service providers.
This executive summary provides an overview of the Link Index Report for Account Opening in Financial Services, a comprehensive report assessing more than 120 account opening solutions in the digital identity industry, focusing on the needs of financial services enterprises. It highlights solution providers’ challenges in meeting buyer demands, analyzes the vendor landscape, and explores buyer opportunities. Profiles of leading vendors in the report include Alloy, Au10tix, Bureau, Caf, Contactable, Effectiv, Experian, FrankieOne, GBG, GeoComply, IDnow, ID.me, iDenfy, IDMERIT, Incode, Jumio, LexisNexis Risk Solutions, MetaMap, Mitek, Onfido, Persona, Plaid, Prove, Refinitiv, ShuftiPro, Signicat, Signzy, Socure, Sumsub, TransUnion, Trulioo, and Veriff.
Executive Summary
Solution providers of account opening in financial services are focused
on providing the highest levels of assurance without compromising user friction while maintaining regulatory compliance. In the Link Index for Account Opening in Financial Services, you’ll discover:
Definition
Account opening solutions in financial services are compliance and fraud solutions that help enterprises verify new users during customer registration. The main use case is for mandatory compliance checks, known as “Know Your Customer” (KYC).
Market Demands
Existing challenges include manual review and user friction, limited comprehensive platform capabilities, and inaccurate or incomplete data sets. Vendors must address these issues to meet and surpass buyer requirements.
Key Purchasing Criteria
Financial service enterprises seek vendors that meet specific key criteria when considering account opening solutions. 94% prioritize speed and accuracy, 81% prioritize product capabilities, and 71% prioritize value for money.
Vendor Landscape
Around 150 vendors claim to offer account opening compliance and fraud solutions in banking, but only 32 (21.3%) have the necessary product features to meet buyer demands.
Landscape Analysis
Currently, large incumbents hold the strongest position in the market, but new and innovative solutions, as well as regionally focused vendors with access to government source data, can enhance user experience for buyers.
Buyer Opportunity
Financial service providers who adopt market-leading compliance and fraud solutions for account opening can expect a significant ROI, potentially seeing a return of $3.50 for every dollar invested in a solution provider.
Leading Vendors Profiled
Alloy, Au10tix, Bureau, Caf, Contactable, Effectiv, Experian, FrankieOne, GBG, GeoComply, IDnow, ID.me, iDenfy, IDMERIT, Incode, Jumio, LexisNexis Risk Solutions, MetaMap, Mitek, Onfido, Persona, Plaid, Prove, Refinitiv, ShuftiPro, Signicat, Signzy, Socure, Sumsub, TransUnion, Trulioo, Veriff.
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