Consumers are becoming increasingly familiar with biometrics, the identification method that makes use of a person’s unique behavioral or physiological traits. People all across the world have grown accustomed to utilizing biometric authentication methods, such as fingerprint scanners and face recognition, to access their mobile devices and make payments. This technology may also be used to boost safety in the banking industry and other financial institutions.
Many banks and other financial organizations have adopted or are in the process of implementing biometric identification technology as it has steadily replaced more antiquated technologies. Biometric identification is poised to become a strategic, integral part of banking securing platforms around the world as a result of the rapid digitalization of the industry and the continued need to use stricter employee and customer identification protocols to prevent fraud and identity theft.
The use of biometrics in banking provides a robust authentication technique that increases the safety of customers’ in-person, over-the-counter, and automated teller-machine transactions. Already, financial institutions are embracing biometric authentication as a means to strengthen the safety of financial transactions and improve the quality of service they provide to their clientele.
Different Ways to Use Biometrics in Banking
Passwords and tokens for electronic access, signatures for branch services, and personal identification numbers (PINs) for mobile banking and ATMs are all being phased out in favor of biometric technologies. Using biometric technology, banks may enhance customer service and safeguard accounts in the following ways:
Financial firms are increasingly adopting biometric authentication systems, such as fingerprint and finger vein biometrics in banking, to verify the identities of their customers at their busiest branches. In addition, fingerprint and finger vein systems are convenient, simple to use, and trustworthy when it comes to security. Customers can now use biometric authentication at the teller line, with fingerprint and finger vein scanners matching a customer’s biometric template stored in the bank’s database. Only after authentication is complete will a customer be allowed to conduct banking business at the branch.
ATMs with Biometric Authentication
In industrialized nations, the use of biometrics at automated teller machines (ATMs) is widespread and rapidly expanding. Customers can verify their identities at ATMs in one of two ways: by using simply biometrics and a bank card, or by using a PIN in addition to biometric authentication. Therefore, biometrics like as face recognition, fingerprints, finger vein patterns, and iris detection work well with automated teller machines. Additional benefits include the adaptability, portability, and precision of various biometric modalities.
Using Biometrics with Online Banking
Online banking systems that rely on biometric identification can benefit from fingerprint, finger vein, face, and voice recognition thanks to the widespread availability of PCs, laptops, and even smartphones equipped with cameras, microphones, and fingerprint scanners. Some financial institutions now necessitate a biometric credential from consumers before they may access their accounts. Biometric authentication is used by certain financial institutions in addition to the more commonplace password in a “multi-factor” authentication system. This aids financial companies in preventing customers’ identities from being stolen by fraudsters attempting to get unauthorized access to private client data.
Mobile Banking with Biometrics
According to Juniper Research, 400 million people around the world used their mobile devices to complete a financial transaction in 2013. Many consumers of banks continue to worry about the safety of mobile banking services, despite this massive use. A voice or speech recognition system might be used for banking transactions or customer services, with clients verifying their identities by speaking into the microphone of their phones.
Streamlined Password Management with Single Sign-On
There is a global problem with bank network security and data leaks. Recent data from ACI Worldwide indicates that over half of all consumer bank accounts have been breached, with 15% of them resulting in fraudulent activity. According to a survey conducted in 2013 by the Ponemon Institute, the average cost of such catastrophes is $9.4 million. For simplified password management, identity management, data and network security, and two-factor authentication, financial institutions may implement biometric single sign-on (SSO) systems. Banks and their clients will be safe from the dangers of unauthorized access and data breaches thanks to this system, which will do away with weak passwords and other security flaws. Additional security risks and government compliance fees can be avoided with a biometric SSO solution.
Banking’s Biometric Future
Experts see a bright future for biometrics in banking. Financial institutions can pick from a variety of biometrics identification methods. Biometrics offer the greatest degree of security for banks and are predicted to replace traditional methods of verification over the next decade. The use and impact of this technology might be enormous. The banking industry anticipates it will play an increasingly important role.
There is a lot of groundwork to be done before biometric authentication systems become the standard in the financial industry. Financial institutions are interested in this identity verification technology, but there is still much to learn before it can be used. Companies are making serious investments to learn more about the technology’s capabilities. The biometric sector has expanded because of the rising need for convenience and a more foolproof security system, but it still has a ways to go.