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Biometrics: The Future of Banking

Jun 25, 2018 | VIX Verify

Mobile technology has been the catalyst for a rapid digitalisation of a number of services. The most significant of these services is banking. The level of convenience and service financial institutions can now provide customers, as a result of mobile technology, is massive. Financial institutions can offer customers mobile deposit, access to their accounts 24/7, the ability to send and receive money at any time, and so much more. Yet, with great technology and tools comes the increased chance for identity theft and financial loss. That is why biometric authentication is becoming more of an everyday reality with a number of banks and less of a sci-fi fantasy. Biometric verification reduces the chance of human error in the identification process and ultimately creates a more secure access point for account holders and customers.

The Decline of the Banking Branch
Mobile technology has changed our society completely. Once upon a time, you would have to visit your local bank branch to deposit cheques, withdraw money, and open accounts. ATM banking changed the reliance on the local branch a little bit but mobile technology has decimated it. You no longer need to visit your branch to deposit cheques, get cash, or even open accounts with some banks. Branch visits are in decline. Over the next five years, in-person visits to local branches are estimated to drop by 40 percent. At the same time, mobile banking transactions are expected to rise over 100 percent. It is estimated that in the next five-years nearly 90 percent of all banking will be done via the mobile phone. These figures put an increased demand on more stable security measures than passwords and in-person identifications.

The Future of Identity Verification
Paper identification, drivers licenses, birth certificates, etc, can all be forged and duplicated by savvy criminals. Passwords can be stolen online, or they can be guessed with relative ease (since most people use simple passwords).

Biometrics hold the key to efficient and safer identity verification in the future. Instead of relying on antiquated, easily duped processes, biometrics rely on the unique, individual biological patterns of a person to verify their identity and grant them access. Here is a list of some of the biological patterns used in biometric verification:
• Facial recognition
• Vocal identification
• Fingerprints
• Retina patterns of the iris
• Vein pattern recognition
• DNA identification
• and more

Stealing, forging, or otherwise defrauding a biometric security system is a lot more difficult as you can see. In one study, 56 percent of Australians said they would be comfortable using biometric security protocols regularly to make it a lot harder to steal your information.

Where We Are Now
While biometric identification has been a prevalent topic in the world of financial security, as of the summer of 2017 (the most available data), only 13 percent of financial institutions have implemented some sort of biometric security feature. Yet, this figure has very little to do with overall interest in the technology. Because consumers and institutions alike are very keen on implementing and using this technology for banking. The same data shows that 93 percent of consumers want biometric security measures, and 92 percent of the industry is interested in using it. The demand for biometric security is strong.

The current issue is deployment. Banks want to deploy stronger security measures (biometrics) in the smoothest possible way. Mobile user experience is a major concern when it comes to banking applications. Balancing user experience with security function is a major concern for banks and financial institutions. That is why the number of institutions that have added some sort of biometric security function is only 13 percent of the industry, despite the overarching popularity of the technology.

greenID Mobile, VIX Verify’s biometric and eKYC solution can help banks and financial institutions combat fraud more effectively. With greenID Mobile, ID verification and facial recognition work together to ensure compliance and improve user experience during onboarding.

If you are looking for a biometric verification solution to secure and streamline your customer onboarding, contact us today.

Sources:
https://thefinancialbrand.com/67810/biometric-banking-know-your-customer-kyc/

https://www.bayometric.com/biometrics-in-banking-and-finance/

https://www.enterpriseinnovation.net/article/biometric-authentication-methods-preferred-over-passwords-banking-study-1392382122

https://auspostenterprise.com.au/insights/digitising-services/biometrics-changing-identity-financial-services-in-australia

https://www.afr.com/technology/visa-moves-to-kill-pins-by-pushing-aussie-banks-towards-biometric-authentication-20170824-gy3cs5