Digital Onboarding Process In Finance Market Size, Share, Growth, and Industry Analysis, By Type (eKYC platforms, Workflow automation tools, Digital signature solutions), By Application (Banking, Insurance, FinTech), and Regional Forecast to 2034.

DIGITAL ONBOARDING PROCESS IN FINANCE MARKET OVERVIEW

The Global Digital Onboarding Process In Finance Market Size was USD 670.66 billion in 2025 and is projected to reach USD 1559.52 billion in 2034, exhibiting a CAGR of 9.83% during the forecast period 2025-2034.

The digital onboarding in finance is a method of customizing a distant and secure method of enrolling new customers in a financial product and service via digitalized technology. The tools that this process relies on include offline forms, electronic signatures, and other means of automatic identity verification auto biometrics, and document scanning. It simplifies the conventional systems that mostly offer time-consuming and paper-driven processes and renders opening of an account or loan issuing much quicker and convenient anywhere. Importantly, digital onboarding also supports regulatory compliance-related processes such as Know Your Customer (KYC) and Anti-Money Laundering (AML) checks, so that financial institutions can ensure they can validate the identity of a customer whilst addressing legal requirements.

The dynamics of the global digital onboarding in the financial sector are seeing an unprecedented growth due to the increased levels of demand for an additional seamless customer experience and the necessity of financial institutions to cut costs and their fight against fraud. This trend was greatly boosted by the COVID-19 pandemic, which forced numerous institutions to switch to entirely digital solutions. In the Finance segment, Banking, Financial Services and Insurance (BFSI) industries are largely investing in these solutions from now, the Digital Onboarding Process In Finance Market share. North America is a large market, but the adoption is also quickly taking off in emerging economies in Asia-Pacific, Africa, and Latin America as growing penetration of both the internet and smartphones is facilitating the access of financial institutions to serve a broader and underserved population.

GLOBAL CRISES IMPACTING THE DIGITAL ONBOARDING PROCESS IN THE FINANCE MARKET- COVID-19 IMPACT 

The DIGITAL ONBOARDING PROCESS IN THE FINANCE Industry Had a Negative Effect Due to Factory Closures During the COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The COVID-19 pandemic became one of the key drivers of the digital onboarding market in finance. The potential was an extreme constraint in traditional, face-to-face banking and financial services during lockdowns and social distancing. This made it imperative and urgent that financial institutions provide contactless and distant customer acquisition and service tools. The pandemic widened an already existing movement towards going digital to the point that even reluctant banks and customers have had to embrace digital services. This resulted in the increased production and enactment of digital processes of onboarding, which encompass such functions as distant identity verification, e-submission of documents, and e-signatures. Besides making the customer journey more efficient, this also played a pivotal role in the business continuity and financial inclusion of a larger population, especially in developing economies.

LATEST TRENDS

Embedded Finance and API-based Solutions to Drive Market Growth

A major trend reshaping digital onboarding and the operator experience is embedded finance, which requires the use of API based solutions. This model is particularly well-suited to productizing financial services, e.g., adding payments, lending, or insurance on top of non-financial applications, like an e-commerce, ride-sharing platform. The key technology enabling this is APIs (Application Programming Interfaces), which currently serve as a gateway to safely link up a platform with the services of a financial institution. The trend gives businesses the opportunity to give in-context financial offerings where a user may apply for a loan or open an account without having to leave the application that he or she is currently using. In the case of digital onboarding, this would translate into the customer acquisition process being no longer a discrete, fragmented experience but instead, part of the customer's existing user flow, which results in greater convenience, higher conversion rates, less friction, and more in-built customer interactions.

DIGITAL ONBOARDING PROCESS IN FINANCE MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into eKYC platforms, Workflow automation tools, Digital signature solutions.

• eKYC platforms: These platforms automatically help in confirming the identity of a customer through the use of digital tools, which may include facial recognition with liveness detection, reading data off official documents, and more, so that all the requirements related to regulatory compliance can be achieved without the physical location of the customer.
• Workflow automation tools: Such solutions make the entire onboarding process smooth since they automate time-consuming activities such as filling forms, entering data, and communicating with customers, making the process the same from start to end.
• Digital signature solutions: Presenting an enshrinable and safe way to sign paperwork online, such tools will be critical in sealing agreements, contracts, and other required paperwork in the digital onboarding procedure.

BY Application

Based on the Application, the global market can be categorized into Banking, Insurance, and FinTech.

• Banking: Digital onboarding in the banking industry simplifies the procedures needed to open new accounts and apply for loans by implementing such technologies as video KYC, biometric verification, which enables remote and safe customer acquisition.

• Insurance: In the case of the insurance business, the digital onboarding provides a paperless approach to obtain insurance quotations, send and receive the documents, and purchase the insurance policy, which leads to greater convenience for customers and automation of the risk assessments to offer a quicker issuance of the policy.
• FinTech: Digital onboarding is a cornerstone of business operations at FinTech companies that use it to be able to offer instant access to a variety of services to users such as mobile payments and investment applications with the main emphasis being put on eliminating friction throughout the onboarding process and on conducting compliance checks in a short amount of time with the help of Artificial Intelligence.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities, and challenges, stating the market conditions.

DRIVING FACTORS

Demand for Enhanced Customer Experience to Boost the Market

Demand for Enhanced Customer Experience is the major factor in the Digital Onboarding Process In Finance Market Growth.  Tech giants have primed modern consumers to feel that their experience in using their services should be incredibly smooth. Modern consumers are thus expecting financial services to be just as swift and frictionless. Paper-based onboarding systems are now regarded as a significant annoyance, and the application-abandonment rate and customer churn are very high. Owing to this, financial institutions have been feeling the pressure to implement digital onboarding systems in a bid to deliver a convenient, smart, and mobile-centered experience. This emphasis on the customer-focused design coupled with personalization is the major differentiator that can assist institutions to attract customers and retain customers in this highly competitive environment.

Regulatory Push for Digital Solutions to Expand the Market

A regulatory pressure to adopt digital solutions is narrowing the global digital onboarding market, which is being expanded significantly. In many places, governments and financial regulators are engaging in active modernization of regulations, including Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, to make it clear that regulations expressly allow, and in some cases even encourage, digital identity verification. This has brought legal certainty and a good reason as to why the financial institutions need to move to using digital processes as opposed to manual processing, where the processes are carried out on a face-to-face basis. With such digital solutions, institutions not only will be more efficient in complying with the requirements but will also improve their chances of identifying and stopping financial crime. Regulatory environment thus seems to be a driving force as it is moving the whole industry to a more secure, streamlined, and digital future.

RESTRAINING FACTOR

Complex and Changing Regulatory Environment Impedes Market Growth

A complex and dynamic regulatory environment presents a major challenge in the digital onboarding business across the globe. The setting placed financial institutions within a disjointed trustworthiness of regulations, since various nations as well as states require different necessities related to identity verification and data protection, and avoidance of deceit. Such dynamic change will require expensive and time-consuming amendments to their onboarding platforms to maintain compliance. Ensuring that the various and ever-changing standards are met can become a drag on the process of developing and implementing new solutions, putting the smaller players at a significant disadvantage and hindering the general rate of market expansion. Finally, such complexity of regulations may also stifle the same innovation that is spurring demand for digital solutions.

OPPORTUNITY

Expansion into Emerging Markets for Product Opportunities in the Market

There is a big opportunity to expand the market into the emerging markets with digital onboarding. The penetration of smartphones and the internet is booming in these areas, especially in Asia-Pacific, Africa, and Latin America, which has made the number of potential consumers of financial services quite large. A large proportion of such consumers are unbanked or have weak banking infrastructure in terms of consumer numbers or bank efficiency; this includes rural areas. With digital onboarding, the direct access to this population is free of cost and takes a shorter period since financial institutions and FinTechs do not need to have an extensive physical branch network, which is costly. With the help of a mobile-first strategy, the companies will be able to provide an accessible, inclusive, and seamless experience of joining new customers and promote financial inclusion and expansion in the market.

CHALLENGE

Digital Exclusion and Accessibility Issues Could Be a Potential Challenge

Whereas the digital onboarding process comes with convenience, one of the challenges associated with this approach is digital exclusion and accessibility problems. Such a scenario arises when a population group, e.g., older adults, people with lower digital literacy, or people with disabilities, do not find these digital tools effective to work with. The use of complex user interfaces, unfamiliar jargon, and other lack of support for assistive technology may cause certain impediments to the accessibility of such consumers to other important services in the financial sector.  This may cause a huge segment of the population to be marginalized, leaving them to use the less profitable means or not have the necessary financial products. This restricts the possible customer base of financial institutions; not only that, but it also carries ethical and reputational risks associated with not being inclusive.

Digital Onboarding Process In Finance Market REGIONAL INSIGHTS

• NORTH AMERICA

North America is an advanced and competitive market with mature digital onboarding owing to an early adoption of cutting-edge technologies and the existence of large industry players. Financial institutions in the United States Digital Onboarding Process In Finance Market are preoccupied with serving customers on a new level and preventing ID theft and advanced fraud, so the investments in AI-based identity verification, biometrics, and the rest of the security characteristics have reached high levels. Its market is also driven by a robust regulatory framework, which facilitates and, in certain instances, requires the application of digital compliance solutions, especially in the very advanced Banking, Financial Services, and Insurance industry.

• EUROPE

Europe is an important and expanding market for digital onboarding due to the exhaustive regulatory nature and the high customer demand for digital services. The emphasis on data security in the region, seen through regulations such as GDPR, has ensured that the financial institutions give importance to secure and compliant digital onboarding. Though adoption varies on a country level, with the Nordic countries as the most dominant ones, it continues to push toward end-to-end digital experiences that are frictionless. One of the main drivers of the market in this Region is the emergence of neobanks and the further digitalization of traditional banks.

• ASIA

There are enormous opportunities in the Asia Pacific region, which is the fastest-growing market regarding digital onboarding. This expansion is driven by both a massive, or frequently unbanked, population, combined with great growth in smartphone and internet penetration. Governments and financial institutions of such countries as India, China, and Southeast Asia are pursuing digital financial inclusion by actively implementing the initiatives based on digital onboarding. The market is also found to have a high mobile-first focus, where quick, accessible, and low-cost solutions are the focus to be able to support its large and diverse base of customers.

KEY INDUSTRY PLAYERS

Key Players Transforming the Digital Onboarding Process In the Finance Market Landscape through Innovation and Global Strategy

Through the innovation of strategies and market development, the market players in the field of enterprise are shaping the Digital Onboarding Process In Finance Market. Certain of these can be seen as advancements in designs, Products of materials, and controls, besides the use of smarter technologies for the enhancement of functionality and operational flexibility. Managers are aware of their responsibility to spend money on the development of new products and processes and expand the scope of manufacturing. This market expansion also assists in diversifying the market growth prospects and attaining higher market demand for the product in numerous industries.

LIST OF TOP DIGITAL ONBOARDING PROCESS IN FINANCE COMPANIES

• Pegasystems (U.S.)
• Backbase (Netherlands)
• Tagit (Singapore)
• Know Your Customer (Hong Kong)
• Akcelerant (Switzerland)
• Digital Onboarding (U.S.)
• Thales Group (France)
• Veriff (U.S.)
• Bankingly (U.S.)
• Ondato (Lithuania)

KEY INDUSTRY DEVELOPMENT

March 2024: Veriff, a company that provides identity verification services, achieved major advancements in its product over the period between the middle of 2024 and 2025. During this time, it deployed Full Auto IDV v3, an AI-based framework that can support fully-automated onboarding. To enhance security, the company also upgraded its Biometric Authentication to achieve iBeta Level 2 liveness compliance, a rigorous standard against sophisticated deepfake attacks. Additionally, Veriff introduced FaceBlock, a self-service tool that lets businesses proactively block known fraudsters, further strengthening its fraud prevention capabilities for digital onboarding.

REPORT COVERAGE

This report is based on historical analysis and forecast calculation that aims to help readers get a comprehensive understanding of the global Digital Onboarding Process In Finance Market from multiple angles, which also provides sufficient support to readers’ strategy and decision-making. Also, this study comprises a comprehensive analysis of SWOT and provides insights for future developments within the market. It examines varied factors that contribute to the market's growth by discovering the dynamic categories and potential areas of innovation whose application may influence its trajectory in the upcoming years. This analysis encompasses both recent trends and historical turning points for consideration, providing a holistic understanding of the market’s competitors and identifying capable areas for growth.

This research report examines the segmentation of the market by using both quantitative and qualitative methods to provide a thorough analysis that also evaluates the influence of strategic and financial perspectives on the market. Additionally, the report's regional assessments consider the dominant supply and demand forces that impact market growth. The competitive landscape is detailed meticulously, including shares of significant market competitors. The report incorporates unconventional research techniques, methodologies, and key strategies tailored for the anticipated frame of time. Overall, it offers valuable and comprehensive insights into the market dynamics professionally and understandably.