# UK Biometric Banking Market

> UK Biometric Banking Market Size, Share and Research Report By Product Type (Hardware, Software) and By Application (Finger Print, Facial Recognition, Hand Geometry, Iris Recognition, Others)-Forecast to 2035

- **Forecast Period:** 2025 - 2035
- **CAGR:** 15.8%
- **2024:** $ 583.64 Million
- **2025:** $ 675.86 Million
- **2035:** $ 2,930.12 Million
- **Key Players:** Mastercard (US), Visa (US), FIS (US), Gemalto (NL), Thales Group (FR), IDEMIA (FR), BioCatch (IL), Fingerprint Cards (SE), NEC Corporation (JP), SecuGen (US)

**Report ID:** MRFR/BS/57357-HCR · **Pages:** 200 · **Author:** Ankit Gupta & Aarti Dhapte · **Last Updated:** February 06, 2026

**URL:** https://www.marketresearchfuture.com/reports/uk-biometric-banking-market-59127

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## Market Summary

## **UK Biometric Banking Market Overview**

UK Biometric Banking Market Size was estimated at 503.63 (USD Million) in 2023.The UK Biometric Banking Market Industry is expected to grow from 583.2(USD Million) in 2024 to 2,470.22 (USD Million) by 2035. The UK Biometric Banking Market CAGR (growth rate) is expected to be around 14.023% during the forecast period (2025 - 2035).

### **Key UK Biometric Banking Market Trends Highlighted**

Important trends influencing the development and acceptance of the UK Biometric Banking Market define it. The growing attention on security and fraud avoidance in the banking industry is one major force. Financial institutions are using biometric technologies such as fingerprint and face recognition as digital banking becomes more common to boost security measures, lower identity theft, and increase client confidence.

This campaign fits the government's aim to create a safe digital economy and answer mounting cybersecurity concerns. Integration of biometric technologies with mobile banking apps has become common recently.

Convenient and safe ways are being used by banks to let clients easily access their records. Customer need for speedy and effective services improving their banking experience supports this. Furthermore, the robust regulatory framework of the UK guarantees data protection policies and fosters innovation, thereby attracting greater attention to biometric solutions. Biometric banking can be included in underprivileged groups of people.

Banks may increase accessibility for those who might find conventional identification techniques difficult by including biometric solutions. Moreover, as technology develops, there is space for expansion in the creation of multi-modal biometric systems combining many biometric identifiers for maximum security.

The UK Biometric Banking Market is headed toward a time when expansion depends mostly on improved security, customer experience, and accessibility. This helps to effectively manage privacy and security issues and position the market to satisfy changing customer expectations.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

## **UK Biometric Banking Market Drivers**

### **Increasing Demand for Secure Transaction Methods**

The increasing incidences of fraud and financial crimes in the UK highlight the necessity for enhanced security measures in banking. According to UK Finance, there was a 38% increase in fraud cases reported in 2021, with total losses exceeding 1.3 billion GBP. This alarming trend propels financial institutions to adopt advanced security technologies, further driving the adoption of biometric solutions in the UK [Biometric Banking Market](../../../reports/biometric-banking-market-11821) Industry.

Established organizations such as Barclays and HSBC have already begun implementing biometric solutions, including fingerprint and facial recognition, to enhance customer security and trust.Given the overarching emphasis on fraud prevention and security, the growth of the UK Biometric Banking Market is expected to continue as banks prioritize the safety of their clients' information.

### **Advancements in Biometric Technology**

The rapid advancements in biometric technologies, such as the improvement in facial recognition systems and fingerprint sensors, are propelling the UK Biometric Banking Market. Technology companies, including Apple and Google, are investing heavily in Research and Development (R&D) to enhance the accuracy and speed of biometric authentication.

According to the UK Intellectual Property Office, there has been a notable increase in the number of patents filed related to biometric technologies, suggesting a growing interest and innovation within this sector.Consequently, the banking sector in the UK is more likely to integrate these advancements swiftly, leading to greater adoption rates in biometric banking solutions.

### **Regulatory Support and Compliance Standards**

The regulatory environment in the UK is increasingly supportive of biometric banking solutions as a means to enhance customer identification processes. The UK's Financial Conduct Authority (FCA) and the Information Commissioner's Office (ICO) have set forth guidelines that encourage financial institutions to adopt biometrics for anti-money laundering (AML) and identity verification measures.

Research indicates that 67% of UK financial institutions are considering biometric data as a viable solution for compliance with AML regulations.With established players, such as Lloyds Banking Group adopting biometric technologies to align with regulatory standards, the market for biometric banking solutions is expected to grow robustly in the years ahead.

## **UK Biometric Banking Market Segment Insights**

### **Biometric Banking Market Product Type Insights**

The UK Biometric Banking Market shows considerable potential within its Product Type segment, which includes Hardware and Software offerings. As financial institutions increasingly seek efficient and secure methods to manage customer identities and transactions, the demand for biometric solutions is on the rise. The Hardware segment encompasses devices such as fingerprint scanners, facial recognition cameras, and iris recognition systems, which are integral to enhancing security measures in banking environments.

These devices leverage advanced technology to provide secure access to accounts, reducing the risk of fraud and identity theft, a significant concern in the UK, where financial institutions handle millions of transactions daily.

On the other hand, Software solutions also play a vital role in the UK Biometric Banking Market, facilitating the processing of biometric data and ensuring compliance with stringent regulatory standards. As banks adopt artificial intelligence and machine learning technologies, the efficiency of biometric verification processes is expected to improve dramatically.

The integration of these Software solutions not only boosts security but also enhances customer experience by providing faster and more accurate authentication methods. With rising consumer expectations for seamless banking experiences, the importance of software solutions that complement Hardware offerings becomes ever more significant.

Notably, the increasing prevalence of cyber threats and the growing focus on regulatory compliance are driving investments in biometric authentication systems across the UK. As financial institutions work to strengthen their defenses against data breaches, both Hardware and Software components must evolve to meet these challenges. With the government's backing for digital innovation in financial services, the market continues to grow, supported by the vast array of technological advancements.

The combination of robust Hardware capabilities and sophisticated Software solutions positions the UK Biometric Banking Market as a critical frontier for enhancing security protocols and meeting the future demands of the banking industry. Balancing these two segments not only optimizes performance but also creates opportunities for ongoing innovation and development, ensuring that institutions can meet the specific needs of their customers while maintaining high security and regulatory standards.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

### **Biometric Banking Market Application Insights**

The UK Biometric Banking Market focuses on various applications that are critical for enhancing security and customer experience in financial transactions. Biometrics such as Finger Print and [Facial Recognition](../../../reports/facial-recognition-market-1250) are currently predominant due to their ease of use and reliability, making them integral for seamless authentication processes in banking.

Hand Geometry and Iris Recognition represent niche applications, offering advanced security features that are gaining traction, particularly in high-security environments where fraud prevention is a top priority.The growing emphasis on minimizing identity theft and cyber fraud in the UK is driving the demand for biometric-based solutions across banks.

With technology advancements, the integration of biometric systems within banking operations is expected to not only streamline user access but also foster trust among consumers as these methods become more prevalent.

Overall, the diverse array of applications reflects a robust market evolution, catering to varied security needs and preferences of UK consumers. Increasing acceptance of biometric solutions by financial institutions is likely to shape the future of banking security, providing vast opportunities for innovation and growth in this segment.

## **UK Biometric Banking Market Key Players and Competitive Insights**

The UK Biometric Banking Market is witnessing significant transformation driven by the rapid technological advancements in biometric authentication methods. This market is characterized by a competitive landscape with multiple banking institutions racing to adopt and implement biometric solutions that enhance security while adding convenience for customers.

Biometric technology, such as fingerprint recognition, facial recognition, and voice identification, has gained momentum, prompting banks to strive for a seamless integration into their existing systems. The competitive dynamics are shaped not only by the technological capabilities of each bank but also by customer perceptions, regulatory compliance, and partnership strategies in relation to biometric innovations.

As more banks focus on enhancing customer experience while ensuring robust security measures, the competition is set to intensify further, thereby catalyzing a significant evolution in how banking services are delivered in the UK.Metro Bank stands as a prominent player in the UK Biometric Banking Market, known for its pioneering customer-centric approach and innovative solutions.

The bank has embraced biometric technology to streamline customer interactions and enhance security measures across its services. Metro Bank’s focus on providing an efficient banking experience is bolstered by its strong presence and understanding of customer needs, allowing it to differentiate itself in a crowded market. Through the deployment of biometric authentication, such as fingerprint scanning in its mobile applications, it offers customers a more secure and convenient means of accessing their accounts.

Metro Bank's agility in adopting new technology and its commitment to outstanding customer service contribute to its competitive edge, positioning it as a leader in the biometric banking landscape within the UK.Royal Bank of Scotland operates within the UK Biometric Banking Market with a focus on integrating cutting-edge biometric solutions into its offerings.

The bank has made significant strides with its range of products and services that include biometric access options, catering to the evolving demands of modern banking clientele. RBS is recognized for its emphasis on security and compliance, ensuring that its biometric systems meet industry standards while providing a seamless customer experience.

The bank’s strong market presence is bolstered by its strategic initiatives, including partnerships that enhance its biometric capabilities and potential mergers and acquisitions aimed at expanding its technological reach. RBS's proactive stance in harnessing biometric solutions aligns with its commitment to innovation in customer service, making it a key player as banks adapt to the increasing demand for enhanced security systems in the UK banking sector.

### **Key Companies in the UK Biometric Banking Market Include**

- Metro Bank
- Royal Bank of Scotland
- Monzo
- Curve
- [Barclays](https://www.barclaycard.co.uk/business/accepting-payments/corporate-payment-solutions/news/biometric-payments)
- Nationwide Building Society
- HSBC Holdings
- Revolut
- Standard Chartered
- Citi UK
- TSB Bank
- Atom Bank
- Starling Bank
- Lloyds Banking Group
- Santander UK

### **UK Biometric Banking Market Industry Developments**

The UK Biometric Banking Market is experiencing significant advancements, particularly with the adoption of biometric technologies such as facial recognition and fingerprint scanning for enhanced security. Companies like Metro Bank and Royal Bank of Scotland are increasingly integrating biometric solutions to streamline customer authentication processes.

In recent developments, Monzo and Revolut have reported successful trials of biometric features that have improved user engagement and security measures.

There are ongoing discussions regarding data privacy and regulatory compliance among banks like HSBC Holdings and Barclays as they innovate in biometrics. Additionally, market valuations for companies such as Lloyds Banking Group and Santander UK have grown as investments in biometric technologies are yielding positive outcomes.

In terms of mergers and acquisitions, notable activities include Atom Bank's acquisition of a fintech startup focused on biometric payment solutions in April 2023, further enhancing their competitive edge.

Furthermore, in July 2021, Standard Chartered expanded its biometric solutions in partnership with tech firms to enhance digital banking experiences. The emphasis on secure, efficient banking methods is reshaping consumer expectations in the UK finance sector, pushing traditional banks to adapt rapidly to technological innovations.

## **UK Biometric Banking Market Segmentation Insights**

### **Biometric Banking Market Product Type****Outlook**

- Hardware
- Software

### **Biometric Banking Market Application****Outlook**

- Finger Print
- Facial Recognition
- Hand Geometry
- Iris Recognition
- Others

## Market Drivers

### Rising Cybersecurity Threats

The biometric banking market is experiencing heightened demand due to the increasing prevalence of cyber threats. Financial institutions in the UK are under constant pressure to safeguard sensitive customer data. As cyberattacks become more sophisticated, traditional security measures appear inadequate. Consequently, banks are investing in biometric solutions, which provide enhanced security through unique physical traits. The biometric banking market is projected to grow at a CAGR of 20% over the next five years, driven by the need for robust security measures. This trend indicates a shift towards more secure banking practices, as institutions seek to protect their assets and maintain customer trust. The integration of biometric technology not only mitigates risks but also enhances the overall security posture of financial institutions, making it a critical driver in the biometric banking market.

### Regulatory Compliance and Standards

The biometric banking market is also driven by the need for regulatory compliance and adherence to industry standards. In the UK, financial institutions are required to implement robust security measures to protect customer data and prevent fraud. Regulatory bodies are increasingly endorsing biometric solutions as a means to enhance security and compliance. For instance, the Financial Conduct Authority (FCA) has issued guidelines that encourage the adoption of biometric technologies in banking. This regulatory support is likely to stimulate investment in biometric systems, as banks strive to meet compliance requirements while improving security. The biometric banking market is expected to benefit from this trend, as institutions align their operations with regulatory expectations, ensuring they remain competitive and secure.

### Increased Investment in Fintech Innovations

The biometric banking market is witnessing a surge in investment in fintech innovations, which is driving the adoption of biometric technologies. Venture capital funding for fintech companies in the UK has reached record levels, with a significant portion allocated to biometric solutions. This influx of capital is enabling startups and established firms to develop cutting-edge biometric technologies that enhance security and user experience. As banks collaborate with fintech companies to integrate these innovations, the biometric banking market is likely to expand. The potential for improved efficiency and security through biometric solutions is attracting attention from investors, suggesting a promising future for the market. This trend indicates that as investment in fintech continues to grow, the biometric banking market will benefit from enhanced technological capabilities and increased adoption.

### Technological Advancements in Biometric Systems

The biometric banking market is significantly influenced by rapid technological advancements in biometric systems. Innovations in fingerprint recognition, facial recognition, and iris scanning are transforming how banks authenticate customers. These technologies are becoming more accurate, faster, and cost-effective, which encourages their adoption in the banking sector. For instance, the introduction of AI-driven biometric solutions has improved the efficiency of identity verification processes. As a result, banks are likely to invest heavily in these technologies to streamline operations and enhance security. The biometric banking market is expected to reach a valuation of £3 billion by 2027, reflecting the growing reliance on advanced biometric systems. This trend suggests that as technology continues to evolve, the market will expand, driven by the need for more sophisticated and reliable authentication methods.

### Consumer Demand for Convenient Banking Solutions

The biometric banking market is being propelled by a growing consumer demand for convenient and seamless banking solutions. Customers in the UK increasingly prefer quick and efficient access to their financial services, which biometric authentication can provide. By eliminating the need for passwords and PINs, biometric systems enhance user experience while maintaining security. Surveys indicate that over 70% of consumers are willing to adopt biometric solutions for banking, highlighting a shift in preferences towards more user-friendly options. This trend is likely to encourage banks to invest in biometric technologies, as they seek to meet customer expectations and improve service delivery. The biometric banking market is thus positioned for growth, as financial institutions adapt to changing consumer behaviours and preferences.

## Future Outlook

The biometric banking market is projected to grow at a 15.8% CAGR from 2025 to 2035, driven by technological advancements, increasing security concerns, and consumer demand for seamless transactions.

**New opportunities:**

- Integration of biometric authentication in mobile banking apps
- Development of biometric-enabled ATMs for enhanced security
- Partnerships with fintech firms to innovate biometric payment solutions

By 2035, the biometric banking market is expected to be robust, driven by innovation and consumer trust.

## Segment Insights

### By Product Type: Hardware (Largest) vs. Software (Fastest-Growing)

In the UK biometric banking market, the distribution of market share between hardware and software reveals that hardware currently dominates, accounting for a significant portion of overall investments. This strength is derived from established physical biometric devices such as fingerprint readers and iris scanners, which are widely adopted across various banking institutions. Meanwhile, software solutions are on the rise, capturing an increasingly larger share of the market as financial service providers seek more integrated and sophisticated biometric verification processes.

As the market evolves, the growth trends indicate a shift towards software solutions driven by technological advancements and the need for enhanced security measures. The emergence of artificial intelligence and machine learning within this segment is paving the way for innovative software applications that improve the efficiency of biometric systems. Consequently, banking institutions are investing more in software to address customer demands for faster and more reliable services, positioning it as the fastest-growing segment within the market.

Hardware: Fingerprint Readers (Dominant) vs. Software: AI-Based Solutions (Emerging)

The biometric banking market segment for hardware is characterized by established technologies such as fingerprint readers, which are reliable and widely implemented in various bank branches. This dominance is largely because of the direct and tangible benefits these devices offer in terms of security and customer identification. They have a significant presence in physical banking environments, bolstering customer trust and operational efficiency. In contrast, AI-based software solutions are emerging as a critical force, leveraging advanced algorithms to enhance the performance of biometric systems. These solutions enable seamless integration with existing banking software, providing enhanced user experience, personalization, and security measures. The dynamic between the two segments illustrates a transition in the market, where traditional hardware meets cutting-edge software innovations.

### By Product Application: Fingerprint (Largest) vs. Facial Recognition (Fastest-Growing)

In the UK biometric banking market, the fingerprint segment holds the largest market share, driven by its widespread acceptance and reliability. This technology has established itself as the primary choice for authentication in banking applications, appealing to both consumers and financial institutions due to its cost-effectiveness and ease of use. In contrast, facial recognition is rapidly emerging as a significant player, capturing a growing market share fueled by advancements in technology and increasing consumer preference for contactless solutions.

The growth trends within this segment are notably influenced by technological innovations and heightened security awareness among consumers and institutions. Facial recognition, in particular, is experiencing accelerated adoption rates, as the capability to offer seamless customer experiences while ensuring security becomes paramount. As more banks integrate these solutions, the competition between fingerprint technology and facial recognition intensifies, positioning both as critical components of future biometric strategies in banking.

Fingerprint (Dominant) vs. Facial Recognition (Emerging)

Fingerprint technology remains dominant within the UK biometric banking market due to its established presence and consumer familiarity. While it provides robust security, the simplicity of use has made it a preferred choice for many banking institutions. In contrast, facial recognition is emerging as a disruptive force, characterized by its innovative approach to user authentication. This technology not only offers enhanced functionalities, such as anti-spoofing capabilities but also supports a more sophisticated and convenient user experience. As institutions seek to modernize their authentication methods, the competition between these two segments is set to intensify, with each striving to leverage its unique advantages in an evolving market landscape.

## Competitive Benchmarking

The biometric banking market is currently characterized by a dynamic competitive landscape, driven by rapid technological advancements and increasing consumer demand for secure and convenient banking solutions. Key players such as Mastercard (US), Visa (US), and IDEMIA (France) are at the forefront, leveraging their extensive resources to innovate and expand their service offerings. Mastercard (US) has positioned itself as a leader in biometric payment solutions, focusing on enhancing user experience through seamless integration of biometric authentication methods. Meanwhile, Visa (US) emphasizes partnerships with fintech companies to foster innovation and expand its biometric capabilities, thereby enhancing its competitive edge. IDEMIA (France), known for its expertise in identity verification, is actively pursuing strategic collaborations to enhance its biometric solutions, which collectively shapes a competitive environment that is increasingly focused on technological differentiation and customer-centric services.
In terms of business tactics, companies are increasingly localizing manufacturing and optimizing supply chains to enhance operational efficiency. The market appears moderately fragmented, with several key players exerting influence over various segments. This fragmentation allows for a diverse range of offerings, yet the collective strategies of major companies like Mastercard (US) and Visa (US) suggest a trend towards consolidation through partnerships and collaborations, which may reshape the competitive structure in the coming years.
In October 2025, Mastercard (US) announced a strategic partnership with a leading AI firm to enhance its biometric fraud detection capabilities. This move is significant as it underscores the growing importance of artificial intelligence in biometric banking, potentially leading to more secure transactions and improved customer trust. By integrating advanced AI algorithms, Mastercard (US) aims to stay ahead of emerging threats and enhance its service offerings, thereby reinforcing its market position.
In September 2025, IDEMIA (France) launched a new biometric authentication platform designed specifically for mobile banking applications. This initiative reflects IDEMIA's commitment to innovation and its understanding of the increasing reliance on mobile banking solutions. The platform's introduction is likely to attract a broader customer base, as it addresses the growing demand for secure mobile transactions, positioning IDEMIA as a key player in the evolving landscape of biometric banking.
In August 2025, Visa (US) expanded its biometric payment solutions in collaboration with several European banks, aiming to enhance the security of online transactions. This strategic expansion not only broadens Visa's market reach but also aligns with the increasing regulatory focus on secure payment methods. By proactively addressing security concerns, Visa (US) is likely to strengthen its competitive position and foster greater consumer confidence in biometric banking solutions.
As of November 2025, the competitive trends in the biometric banking market are increasingly defined by digitalization, sustainability, and the integration of artificial intelligence. Strategic alliances among key players are shaping the landscape, fostering innovation and enhancing service offerings. Looking ahead, it appears that competitive differentiation will evolve from traditional price-based competition to a focus on technological innovation, reliability of supply chains, and the ability to deliver secure, user-friendly solutions. This shift may redefine market dynamics, compelling companies to invest in cutting-edge technologies and strategic partnerships to maintain their competitive edge.

## Recent News & Developments

The UK Biometric Banking Market is experiencing significant advancements, particularly with the adoption of biometric technologies such as facial recognition and fingerprint scanning for enhanced security. Companies like Metro Bank and Royal Bank of Scotland are increasingly integrating biometric solutions to streamline customer authentication processes.

In recent developments, Monzo and Revolut have reported successful trials of biometric features that have improved user engagement and security measures.

There are ongoing discussions regarding data privacy and regulatory compliance among banks like HSBC Holdings and Barclays as they innovate in biometrics. Additionally, market valuations for companies such as Lloyds Banking Group and Santander UK have grown as investments in biometric technologies are yielding positive outcomes.

In terms of mergers and acquisitions, notable activities include Atom Bank's acquisition of a fintech startup focused on biometric payment solutions in April 2023, further enhancing their competitive edge.

Furthermore, in July 2021, Standard Chartered expanded its biometric solutions in partnership with tech firms to enhance digital banking experiences. The emphasis on secure, efficient banking methods is reshaping consumer expectations in the UK finance sector, pushing traditional banks to adapt rapidly to technological innovations.

## Report Scope

| MARKET SIZE 2024 | 583.64(USD Million) |
| --- | --- |
| MARKET SIZE 2025 | 675.86(USD Million) |
| MARKET SIZE 2035 | 2930.12(USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 15.8% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| Market Forecast Period | 2025 - 2035 |
| Historical Data | 2019 - 2024 |
| Market Forecast Units | USD Million |
| Key Companies Profiled | Mastercard (US), Visa (US), FIS (US), Gemalto (NL), Thales Group (FR), IDEMIA (FR), BioCatch (IL), Fingerprint Cards (SE), NEC Corporation (JP), SecuGen (US) |
| Segments Covered | Product Type, Product Application |
| Key Market Opportunities | Integration of advanced biometric technologies enhances security and customer experience in the biometric banking market. |
| Key Market Dynamics | Growing adoption of biometric authentication in banking enhances security and customer experience amid evolving regulatory standards. |
| Countries Covered | UK |

## Frequently Asked Questions

**Q: What was the market valuation of the UK biometric banking market in 2024?**
A: The market valuation was $583.64 Million in 2024.

**Q: What is the projected market valuation for the UK biometric banking market in 2035?**
A: The projected valuation for 2035 is $2930.12 Million.

**Q: What is the expected CAGR for the UK biometric banking market during the forecast period 2025 - 2035?**
A: The expected CAGR is 15.8% during the forecast period 2025 - 2035.

**Q: Which companies are considered key players in the UK biometric banking market?**
A: Key players include Mastercard, Visa, FIS, Gemalto, Thales Group, IDEMIA, BioCatch, Fingerprint Cards, NEC Corporation, and SecuGen.

**Q: What are the main product types in the UK biometric banking market?**
A: Main product types include hardware and software, with hardware valued at $350 Million and software at $233.64 Million in 2024.

**Q: What are the primary applications of biometric technology in banking?**
A: Primary applications include fingerprint recognition, facial recognition, hand geometry, iris recognition, and others, with fingerprint recognition valued at $100 Million in 2024.

**Q: How does the market for facial recognition technology compare to other biometric applications?**
A: Facial recognition technology is valued at $150 Million in 2024, indicating a strong position compared to other applications.

**Q: What was the valuation of the 'Others' category in the biometric banking market in 2024?**
A: The 'Others' category was valued at $203.64 Million in 2024.

**Q: What is the projected growth trend for the biometric banking market in the coming years?**
A: The market is expected to grow significantly, reaching $2930.12 Million by 2035.

**Q: How does the UK biometric banking market's growth compare to its hardware and software segments?**
A: The hardware segment is projected to grow from $350 Million to $1700 Million, while the software segment is expected to rise from $233.64 Million to $1230.12 Million by 2035.


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