The impact of biometrics recognition on the banking industry
Author: huifan Time: 2021-08-02
The rapid digitization of banking services, coupled with the continued need to adopt stricter customer and employee identification protocols to prevent identity theft and fraud, has set the stage for biometrics to become an integral and strategic part of the financial services security platform.
The impact of biometrics recognition on the banking industryAs a powerful authentication tool to help secure ATM, physical and online transactions, biometrics in the banking industry also helps increase customer trust and enhance brand reputation. With the accelerating adoption of complex transaction technologies and the unfortunate increase in fraud and security breaches due to reliance on traditional security systems such as passwords, it is inevitable that banking services will require more robust authentication solutions.
The increased use of biometrics in banking is helping to better protect customer transactions against fraud.
Biometrics verification in the Banking Industry
Biometrics is an automated method of identifying customers by their biometric features and characteristics (e.g. fingerprints scanner recognition , finger vein identification, iris and voice recognition). Biometrics are unique to each individual and difficult to falsify, which is why biometric verification and authentication are commonplace in immigration control, law enforcement and forensic research. Many banks around the world already use biometrics in their banking systems to authenticate employees and customers, and 52% of all banks using biometrics are located in Asia. According to incomplete statistics, it is estimated that more than 15 million customers have started using biometric authentication for banking transaction methods in Japan. Banks in Mexico, South America, Africa and the Middle East are also turning to biometrics because of its popularity among consumers and its ability to provide greater security than traditional personal identification numbers (PINs) and passwords.
Different ways biometrics are being used in the banking industry
Traditional token-based electronic access is now gradually being replaced by biometrics. Examples include signature systems used in branch service access, traditional password-based use in mobile banking.The following are ways banks can use biometrics to improve banking services and better protect customer assets.
Biometrics device for banks -
Financial services institutions are using fingerprint and finger vein biometrics in their banking operations for customer identification at their branches because these two biometric authentication methods provide fast results for the bank's busiest branches. In addition, fingerprint and finger-vein systems are user-friendly, easy to use and ensure reliable security. When customers visit a branch, they can authenticate themselves at the counter with fingerprint and finger vein biometric scanners that match the customer's existing biometric template in the bank's database and allow them to proceed with their banking transactions after a successful authentication.
Biometrics identification in bank ATMs
The use of biometrics in bank ATMs is popular in developed countries and the adoption rate is growing significantly.There are two methods of customer authentication in ATMs - the customer uses only biometric identification and the bank card or PIN and biometric authentication. Therefore, facial recognition, fingerprints, finger vein patterns and iris recognition are most suitable for use in ATMs because these biometrics can be easily verified in this environment. In addition, these types of biometric modalities offer other advantages, such as flexibility, compactness and accuracy.
Biometrics for online banking
Biometrics use in bank ATMs is common in developed countries, and adoption rates are growing substantially. In ATMs, there are two ways that customers can use to authenticate. Customers use biometrics to authenticate, bank cards or passwords to authenticate in the traditional way. So, after continuous experimentation, facial recognition, fingerprint, finger vein recognition, iris recognition are the most suitable for use in ATMs. This type of authentication guarantees a user-friendly solution, but is also convenient and fast, avoiding secondary contact, and in addition to these advantages, these types of biometrics have other advantages, such as flexibility, compactness, and accuracy.
- Biometrics in Mobile Banking
Mobile banking is growing rapidly worldwide, with 400 million people conducting mobile banking transactions in 2013, according to Juniper research. Despite this large number, many bank customers still lack trust and concern about the security of mobile banking platforms. Banking transactions or customer service can be conducted through voice or voice recognition systems, where customers need to use the microphone in their phone to verify their identity.
Single sign-on solutions for more effective password management
Banks and financial institutions are suffering from global cyber security and data breaches. According to a recent ACI Global Survey, 44% of customer financial accounts were breached and 15% of breaches resulted in fraud. In a 2013 Ponemon Institute survey, the average cost of such incidents was reported to be $9.4 million. Banks can easily adopt a biometric single sign-on (SSO) solution into their networks for password management, identity management, data and network security, and two-factor authentication. The system will eliminate vulnerable passwords and vulnerabilities in the bank's data security system and protect the bank and its customers from unauthorized access and data breaches. In addition, the biometric SSO system will mitigate other security risks and government compliance regulatory fines.
The benefits of biometrics in the banking industry
Protection of bank information - Biometrics provides the most powerful authentication method to protect bank information from unauthorized persons.
Fast and accurate branch banking -
The banking industry has improved the speed and accuracy of the entire industry by adopting biometrics for identification and verification.
Internal Fraud Prevention -
Biometric identification of employees who perform transactions on the back end is a critical step in ensuring identity protection and reducing fraud. Secure Online Banking - In the past few years, the banking industry has been subjected to massive cyber attacks on online services.
Secure Online Banking -
Over the past few years, the banking industry has been subjected to massive cyber attacks on online services. In most cases, customers lose money due to the negative effects of identity theft. Biometrics in banking can help banks protect customer identities when using online banking services.
ATM with biometrics - Biometrics for ATM authentication in banks has brought significant benefits to customers and banks. The system now gives customers the flexibility to conduct transactions without having to carry their bank cards. Banks can avoid the cost and liability of customer problems due to lost or stolen cards.
Audit Trail -
Banks can easily track and monitor employee and customer activity in the system to create specific audit trails using biometrics solutions.
Fast, secure and accurate customer care services -
The banking industry is always in need of tighter security solutions to provide better and more secure customer care services over the phone and Internet. Biometric voice recognition systems, for example, provide a secure and flexible solution to authenticate any customer who performs a transaction outside of a physical environment.
Because of the role that customer trust and loyalty plays in the success of banks and therefore in the economic development of the country, banks should provide convenient and secure banking services to their customers. Biometrics integrated with existing traditional security systems will enable banks to deploy the highest level of authentication security.
Huifan Technology successfully customized a variety of requirements for facial recognition temperature for customers