Reportedly, more than half of businesses in the MENA region have faced new financial crime risks due to the pandemic, including payments fraud, account takeovers, and identity theft. With this, Digital identity verification firm IDnow has opened its doors in Dubai’s DIFC Innovation Hub.
The Middle East and Africa digital identity verification market are expected to hit $800 million by 2025, and this is IDnow’s first office outside Europe, adding to its headquarters in Munich, and offices across Leipzig, Düsseldorf, London, and Manchester.
“The Middle East is a rapidly growing market for digital identity verification, supporting the region’s booming and innovative digital economy,” said Oliver Obitayo, the chief commercial officer of IDnow Group who will also head up the company’s regional team.
According to a study by Comparitech, in the UAE alone cybercrime claims 166,667 victims annually, losing $746 million, with identity theft and fraud key contributors.
“We have been working in conjunction with regional regulators for more than two years, and the time is right to expand our presence with a dedicated team and office. IDnow’s combination of international experience, German-quality standards, and in-depth knowledge of requirements across Middle East jurisdictions, puts us in a unique position to serve government, regulators, banks, financial services, enterprises, and fintech,” Obitayo said.
McKinsey research highlights financial services as the largest driver of identity verification services. As such, these businesses will account for around 62 percent of digital identity verification spending this year, according to Juniper Research.
For nearly a decade, IDnow has been developing technology that serves some of the world’s biggest banks and financial institutions.
To conclude, aligning with the vision of regional governments to strengthen the digital transformation of the banking sector and underline trust in Middle East financial services, IDnow facilitates greater integration with the global financial system and supports the development of legislative and legal frameworks to ensure compliance with international standards.
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