What is Customer Demographics and Target Market of OneSpan Company?

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What are OneSpan's Customer Demographics and Target Market?

Understanding customer demographics and target markets is crucial for any company's success. For OneSpan, a leader in digital identity and anti-fraud, this is especially important given the evolving digital landscape and sophisticated cyber threats.

OneSpan's strategic adaptation to the pervasive need for secure digital interactions highlights its evolution from early data security innovations to current specialized solutions. This focus directly addresses modern challenges in digital fraud and compliance.

OneSpan's primary target market consists of financial institutions, including banks and credit unions, which require robust solutions for identity verification and secure transaction processing. Beyond finance, the company also serves large enterprises across various sectors such as healthcare, government, and technology, all facing increasing demands for digital security and compliance. These organizations typically have complex operational structures and a significant digital footprint, making them prime candidates for OneSpan's comprehensive suite of products, including its OneSpan Porter's Five Forces Analysis.

OneSpan primarily targets businesses and government organizations, with a strong emphasis on financial institutions worldwide. Its customer base includes over half of the top 100 global banks, highlighting its significant presence in the financial services sector.

Financial Institutions

Banks, credit unions, and online-only banks are key clients, requiring solutions for multi-factor authentication and fraud prevention to meet regulatory demands.

Broader Enterprise Market

Healthcare and insurance companies are also served, seeking to secure digital onboarding and protect sensitive data through OneSpan's offerings.

Government Agencies

Government entities utilize OneSpan for secure digital transactions and HR processes, emphasizing the need for high-assurance identity solutions.

Strategic Shift to Software

The company's focus has moved towards software and cloud subscriptions, aligning with market demand for digital security solutions.

OneSpan's customer segmentation is defined by organizational type, size, and the specific security and digital agreement challenges they face, rather than individual demographic data. This B2B approach means that understanding OneSpan's market segmentation involves looking at the needs of institutions rather than personal characteristics. The company's strategic shift towards software and cloud offerings, as evidenced by a 3% revenue increase to $243.2 million in 2024, with Digital Agreements revenue growing by approximately 20%, reflects a response to market trends favoring these solutions. This pivot is a key aspect of the Marketing Strategy of OneSpan.

Key Customer Characteristics

OneSpan's typical customer base requires robust security for digital transactions and compliance with industry regulations.

• Financial institutions needing multi-factor authentication and fraud prevention.
• Enterprises in healthcare and insurance seeking secure digital workflows.
• Government organizations requiring high-assurance identity verification.
• Organizations prioritizing cloud-based and software-defined security solutions.

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OneSpan's customer base is primarily composed of organizations facing significant digital security and compliance challenges. These businesses require robust solutions to combat fraud, verify identities, and streamline digital transactions. The OneSpan customer profile indicates a strong demand for enhanced user experiences coupled with stringent security measures.

Combating Digital Fraud

Customers are driven by the need to prevent account takeovers and application fraud. They seek advanced technologies to protect sensitive corporate data.

Ensuring Regulatory Compliance

Adherence to evolving regulations, such as PSD2, is a key purchasing driver. Maintaining data integrity and streamlining digital processes are paramount.

Enhancing Digital User Experiences

Financial institutions, in particular, prioritize solutions that offer secure and accessible digital banking. They aim to reduce costs and accelerate customer acquisition.

Preference for Frictionless Authentication

There's a growing demand for authentication methods that balance high security with user convenience. By 2025, over half of workforce transactions are predicted to be passwordless.

Demand for Comprehensive Solutions

Customers look for integrated suites covering identity verification, multi-factor authentication, and transaction signing. Secure agreement automation is also a key requirement.

Value in Innovation and Efficiency

Innovations like SMS notifications and FIDO passkeys are appreciated for improving user experience. Businesses also seek flexibility to digitize paper processes and lower automation costs.

Customer feedback directly shapes product development, as seen with financial institutions implementing e-signature solutions across numerous use cases to boost efficiency. This indicates a clear preference for adaptable platforms that can be tailored to specific business needs, ultimately supporting the Revenue Streams & Business Model of OneSpan.

Key Customer Needs

Organizations prioritize solutions that offer robust security against digital threats and ensure compliance with stringent regulations. User experience and operational efficiency are also critical factors influencing purchasing decisions.

• Protection against account takeover
• Prevention of application fraud
• Adherence to regulatory standards (e.g., PSD2)
• Streamlining of digital processes
• User-friendly and secure authentication

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OneSpan operates across more than 100 countries, segmenting its sales into EMEA, the Americas, and Asia Pacific. Historically, EMEA has been its largest revenue generator.

Geographical Revenue Distribution (2024)

In 2024, EMEA accounted for 44% of revenue, the Americas for 36%, and Asia Pacific for 20%. This data highlights the significant market presence in Europe, the Middle East, and Africa.

Regional Revenue Growth Trends (2024)

EMEA saw a 3% revenue decline in 2024, while the Americas grew by 8% and Asia Pacific by 10%. These shifts reflect a strategic move towards software and cloud solutions.

Strategic Market Focus

The company's growth in the Americas and APAC is driven by e-signature adoption and software authentication expansion. This indicates a strong focus on digital transformation solutions.

Global Expansion and Localization

Acquisitions, like Nok Nok Labs in June 2025, bolster global capabilities in passwordless authentication across the US, Asia, and Europe. This supports tailored solutions for regional needs and compliance.

EMEA Market Dynamics

The EMEA region, while historically strong, experienced a revenue dip in 2024. This was influenced by reduced hardware sales and the discontinuation of specific solutions, underscoring a shift in product strategy.

Americas Growth Drivers

Growth in the Americas is primarily fueled by the increasing adoption of e-signature solutions and the expansion of software authentication services. This demonstrates a strong market demand for digital transaction capabilities.

Asia Pacific Expansion

The robust 10% revenue increase in APAC during 2024 is largely attributed to the growing demand for software authentication. This highlights the region's increasing embrace of advanced digital security measures.

Acquisition Impact

The acquisition of Nok Nok Labs enhances the company's global footprint in passwordless authentication. This strategic move strengthens its ability to offer cutting-edge identity verification solutions worldwide.

Regulatory Compliance

The company's commitment to localizing offerings ensures adherence to region-specific laws and regulations. This is vital for serving its highly regulated customer base effectively.

Understanding OneSpan's Market Segmentation

The geographical segmentation into EMEA, Americas, and APAC, coupled with growth trends, provides insight into OneSpan's market segmentation. This approach allows for targeted strategies to meet diverse customer needs.

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OneSpan employs a multi-pronged strategy to attract and retain customers, utilizing direct sales, channel partners, and a strong emphasis on product innovation and customer success. This approach allows them to serve a diverse clientele, from large global corporations to smaller organizations worldwide.

Customer Acquisition Strategies

A primary acquisition focus is on digital identity verification during account opening, enhancing security for new customer onboarding. The company highlights how its solutions streamline customer acquisition and improve user experience, particularly in digital banking environments.

Marketing and Outreach Channels

Marketing efforts span digital platforms, social media channels like X/Twitter and LinkedIn, and participation in investor conferences. These activities aim to communicate financial performance and strategic direction to a broad audience.

Customer Retention Focus

Retention is driven by customer expansion contracts and high on-time renewal rates for subscription and term-based licenses. The company achieved a net retention rate (NRR) of 107% in Q1 2025, largely due to these expansion contracts.

Strategic Revenue Model Shift

A strategic shift from legacy perpetual maintenance contracts to term-based subscriptions is in place to foster longer-term relationships and ensure more predictable revenue streams. This move supports the company's overall Target Market of OneSpan strategy.

Product Innovation for Loyalty

Continuous product enhancements, such as innovations in digital agreements including SMS notifications and improved analytics in H1 2025, are key to retention. These updates aim to enhance the user experience and bolster security.

Financial Performance Indicators

The company's Annual Recurring Revenue (ARR) saw a 9% increase, reaching $168.4 million in Q1 2025. This growth is a testament to their effective customer acquisition and retention strategies.

Operational Excellence and Security

A commitment to operational excellence and providing a high level of security and usability are critical factors in retaining customers. Customer testimonials often highlight these aspects as key drivers of loyalty.

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