Predicting Verification Patterns for the Coming Decade: Insights from Sumsub
In the rapidly evolving digital landscape, businesses are grappling with a fragmented regulatory environment. To navigate this complex terrain, the orchestration of the customer journey has become an essential tool. This week, the Sumsub team is launching a bi-weekly Q&A series to address key topics such as regulatory compliance, verification, automated solutions, and more.
The Rise of AI and Machine Learning
The discussion will focus on trends in verification and risk and fraud management. The predicted verification trends for the next 10 years indicate rapid growth and complexity in fraud prevention driven by AI, expanded adoption of electronic IDs (eIDs), and an increasingly fragmented regulatory landscape. AI and machine learning (ML) will power anomaly detection, predictive risk assessment, and automation of audits, shifting firms from reactive to proactive regulatory compliance. The fraud detection market is projected to grow substantially—from $14.72 billion in 2025 to $65.35 billion by 2034 at an 18.06% Compound Annual Growth Rate (CAGR).
The Growth of Electronic IDs (eIDs) and Identity Verification Technologies
eIDs and identity verification technologies will see strong growth driven by the rising demand for KYC (Know Your Customer) compliance, adoption of biometric and AI-enhanced verification methods, and mobile identity solutions. Advanced AI layers will be continuously updated to detect increasingly sophisticated AI-generated fraud, such as synthetic identities and deepfake attacks, especially relevant for high-risk platforms like cryptocurrency exchanges.
The Fragmentation of Regulatory Landscapes
Regulatory landscape fragmentation will remain a challenge as regulatory complexity grows globally, creating varying compliance requirements across jurisdictions. Key trends include the rise of cloud-based compliance platforms, regulatory sandboxes, RegTech-as-a-Service (RaaS), integration of blockchain for regulatory transparency, and more real-time regulatory reporting enabling timely and accurate compliance.
The Sumsub Q&A Series
This week's discussion will be led by Vyacheslav Zholudev, co-founder and CTO of Sumsub, who will discuss verification trends for the next decade. New answers will be posted every other Thursday, and followers are encouraged to submit their own questions. Submissions for questions can be made on both Instagram and LinkedIn. The Q&A series can be followed on both platforms to stay updated on the latest insights and trends in the world of regulatory compliance and fraud management.
As the digital world continues to evolve, businesses must adapt to these trends to stay ahead of the curve. The widespread use of AI and ML, increased reliance on biometric and mobile eIDs, and growing fragmentation of regulatory frameworks will require continuous monitoring, real-time data integration, and proactive fraud and compliance management to keep pace with evolving threats and regulatory demands.
- The predicted growth in electronic IDs (eIDs) and identity verification technologies will be fueled by advancements in AI and machine learning (ML), making it crucial for fraud prevention and KYC compliance.
- The increasing adoption of AI in fraud detection and risk management will enable firms to shift from reactive to proactive regulatory compliance, as AI powers anomaly detection, predictive risk assessment, and the automation of audits.
