A growing number of businesses are witnessing a significant financial boost, courtesy of the influence of digital nomads, according to recent surveys. In the United States alone, a staggering 62% of companies acknowledge a tangible profit impact attributed to digital nomads. On average, these globe-trotting individuals contribute anywhere from 10% to 40% of new business revenue.
This trend is not confined to a specific industry, as it spans across diverse sectors. Particularly noteworthy are companies in the Retail industry, where 68% attribute 21% or more of their new revenue to foreign customers who are digital nomads. Similar results are seen in Telecom and Insurance (66%), Financial and Banking institutions (64%), Digital services (52%), and Healthcare providers (48%).
However, it’s not all positive news, as digital nomads are also identified as potential contributors to an increase in fraud activities. As a response, 34% of businesses anticipate the need to increase their spending on identity verification by 11-20%. Notably, the Finance, Banking, and Insurance sectors are taking this matter seriously, showing a keen interest in boosting their investments in identity verification solutions.
In the face of emerging security threats, companies are proactively adopting new identity verification technologies and approaches to detect and prevent fraud incidents. The research reveals that 57% of businesses have already implemented biometric authentication in their digital onboarding processes, with an additional 30% planning to do so within the next year. Electronic document verification is gaining traction, with 53% having adopted this approach and 33% planning to do so soon. Likewise, digital identity wallets (49% and 35%, respectively) and device fingerprinting (44% and 36%, respectively) are being embraced by companies to enhance security measures.
Henry Patishman, the Executive Vice President of Identity Verification Solutions at Regula, emphasizes, “Digital nomads are carving out a new segment among target audiences for both Enterprises and SMB companies across various sectors—from Banking to Travel. This positive impact on economies, especially those still grappling with post-pandemic consequences, underscores the need for companies to adapt their business processes, particularly those related to identity verification. Specific changes should optimize the processing and validation of foreign documents while addressing the potential surge in their numbers.
To learn more about the digital nomad’s impact on corporate profits, download the report “Identity Verification in a Globalized World”.
*The research was initiated by Regula and conducted by Sapio Research in September 2023 using an online survey of digital nomads and Fraud Prevention decision makers across the Software/Tech, Financial and Banking Services, Technology, Telecoms, Travel and Hospitality sectors, and others. The respondent geography included the US, UK, Germany, Spain, UAE, and Mexico.
About Regula
Regula is a global developer of forensic devices and identity verification solutions.
With our 30+ years of experience in forensic research and the largest library of document templates in the world, we create breakthrough technologies in document and biometric verification. Our hardware and software solutions allow over 1,000 organizations and 80 border control authorities globally to provide top-notch client service without compromising safety, security or speed.
Regula was repeatedly named a Representative Vendor in Gartner® Market Guide for Identity Verification.