Dubai, United Arab Emirates – 7 February, 2022: IDnow, one of the leading global digital identity verification providers, has announced its launch in the Middle East, with the opening of its new office in DIFC’s Innovation Hub. This is the first IDnow office outside of Europe, adding to its headquarters in Munich, and offices across Leipzig, Düsseldorf, London and Manchester.
The business is targeting the huge Middle East and Africa (MEA) digital identity verification market, which is expected to reach USD 800M by 2025*. It is a rapidly expanding market, with the facial verification sector expected to grow at 20 percent CAGR for the next five years. IDnow’s regional team will be led by Oliver Obitayo, Chief Commercial Officer of IDnow Group and Head of Region – Middle East, Basil Macklai.
On the occasion of its Middle East launch, Oliver Obitayo commented, “The Middle East is a rapidly growing market for digital identity verification, supporting the region’s booming and innovative digital economy. 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 fintechs.”
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. According to a study by Comparitech, in the UAE alone cyber crime claims 166,667 victims annually, losing $746 million, with identity theft and fraud key contributors. 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 spend this year (Juniper Research).
For nearly a decade, IDnow has been developing quality technology that serves some of the world’s biggest banks and financial institutions. The IDnow platform provides a range of secure and seamless products, including its signature IDnow AutoIdent, an automated, AI-powered identity verification. Benefits include reducing onboarding friction, improving customer experience and automating conversion at scale. For banks and financial services, deploying IDnow enhances KYC, AML and regulatory compliance, helping to reduce risk of fraud to protect businesses and their customers.
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 development of legislative and legal frameworks to ensure compliance with international standards.
IDnow is an industry leader and has set the standard for digital identity verification in the EU. It is backed by significant investors including Corsair Capital, Seventure Partners, BayBG Venture Capital, and a consortium of other financiers. The business has also received debt funding from the European Investment Bank, the European Union’s investment bank which is owned by the EU Member States.