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According to a new report published by Introspective Market Research, titled, Digital Onboarding Market by Component, Deployment Mode, and End-User, The Global Digital Onboarding Market Size Was Valued at USD 2.5 Billion in 2023 and is Projected to Reach USD 9.8 Billion by 2032, Growing at a CAGR of 16.2%. The Digital Onboarding Market is experiencing strong growth as organizations across sectors are rapidly transitioning from manual, paper-based onboarding to fully automated, digital-first processes. Digital onboarding uses technologies such as AI, biometrics, e-signatures, and identity verification tools to simplify and secure the customer or employee onboarding experience. It provides faster turnaround times, improved compliance, enhanced user satisfaction, and significant operational cost savings compared to traditional onboarding methods.

This market has gained remarkable traction in industries such as banking, financial services, insurance (BFSI), telecommunications, healthcare, and retail, where customer experience and regulatory compliance are crucial. With the surge in remote operations and digital identity verification, businesses are adopting end-to-end onboarding platforms that streamline account opening, KYC verification, and customer engagement.

Furthermore, as regulatory frameworks such as KYC, AML, and GDPR become more stringent globally, enterprises are prioritizing secure and frictionless onboarding solutions. The integration of AI-driven identity authentication, document verification, and workflow automation is revolutionizing how businesses onboard customers, employees, and partners efficiently and compliantly.

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Market Segmentation

The Digital Onboarding Market is segmented into Component, Deployment Mode, and End-User.

• By Component, the market is categorized into Solutions and Services.
• By Deployment Mode, the market is categorized into Cloud-Based and On-Premises.
• By End-User, the market is categorized into BFSI, IT & Telecom, Healthcare, Government, Retail, and Others.

Growth Driver

One of the key growth drivers for the digital onboarding market is the rising demand for seamless and secure customer onboarding in the BFSI sector. Banks and financial institutions are rapidly digitizing their onboarding processes to reduce turnaround times, improve customer experience, and meet compliance mandates. With the increasing number of online account openings and mobile banking applications, the need for AI-based identity verification and eKYC solutions has grown exponentially. This technological adoption not only enhances operational efficiency but also strengthens fraud prevention and data protection, driving sustained market growth.

Market Opportunity

A significant opportunity for market expansion lies in the integration of AI and machine learning technologies into digital onboarding platforms. These technologies enable intelligent data capture, behavioral analytics, and predictive identity verification, making onboarding processes smarter and more adaptive. Moreover, the rising adoption of digital identity ecosystems and blockchain-based verification models presents new possibilities for secure, decentralized customer onboarding. Emerging economies in Asia-Pacific and Latin America, with their growing fintech and e-commerce sectors, offer immense untapped potential for digital onboarding vendors to expand their footprint.

Digital Onboarding Market, Segmentation

The Digital Onboarding Market is segmented on the basis of Component, Deployment Mode, and End-User.

Component
The component segment is further classified into Solutions and Services. Among these, the Solutions segment accounted for the highest market share in 2023. This dominance is due to the growing demand for AI-powered onboarding platforms that integrate biometric verification, e-signatures, and workflow automation tools. Organizations increasingly prefer end-to-end onboarding software that minimizes manual intervention, improves user experience, and ensures compliance with evolving data protection regulations.

Deployment Mode
The deployment mode segment is further classified into Cloud-Based and On-Premises. Among these, the Cloud-Based segment held the largest market share in 2023. Cloud-based onboarding platforms offer greater scalability, cost efficiency, and faster implementation, making them the preferred choice for enterprises seeking agility. Additionally, they enable seamless integration with CRM and identity management systems, supporting remote access and digital collaboration across global enterprises.

Some of The Leading/Active Market Players Are:

• OneSpan Inc. (U.S.)
• Signicat AS (Norway)
• IDnow GmbH (Germany)
• Mitek Systems, Inc. (U.S.)
• Onfido Ltd. (U.K.)
• Jumio Corporation (U.S.)
• FIS Global (U.S.)
• Tata Consultancy Services Limited (India)
• Equiniti Group plc (U.K.)
• Wipro Limited (India)
• iDenfy (Lithuania)
• Oracle Corporation (U.S.)
• Appway AG (Switzerland)
• Fenergo Ltd. (Ireland)
• Trulioo Information Services Inc. (Canada)
  and other active players.

Key Industry Developments

News 1: In March 2024, Mitek Systems launched its upgraded digital identity verification solution, Mitek Verify 2.0, integrating advanced liveness detection and AI-based facial recognition. This innovation aims to enhance accuracy in digital onboarding for banking and fintech sectors.

News 2: In June 2024, Signicat acquired SmartWorks, a digital identity platform, to strengthen its eID and onboarding capabilities across European markets. The acquisition supports Signicat’s strategy to offer a unified, compliance-ready onboarding suite for regulated industries.

Key Findings of the Study

• The Solutions segment dominated the market in 2023.
• Cloud-Based deployment held the largest market share.
• The BFSI sector remains the leading end-user segment.
• Growth driven by demand for AI-based eKYC and identity verification.
• Asia-Pacific emerging as a key growth region.