The financial sector is undergoing a process of change due to the new forms of communication available on the market. Trends such as the fingerprint scanner are gaining more and more strength in the financial landscape, causing banks to bet on the integration of all possible communication channels to meet customer demands. Customer authentication and identity protection is one of the most current issues in the banking sector. Faced with security challenges, banks and financial organizations are increasingly considering incorporating biometric technology into their platforms.
Biometrics are based on unique physical characteristics (heart rate, blood characteristics such as pressure, protein level, cholesterol, among other traits) and behavioral characteristics. Historically, fingerprint recognition has been the preferred option in the financial sector.
Over time, the biometric security system is likely to replace personal identification numbers (PINs) for ATM security and other scenarios. This market shift is happening faster than initially anticipated, with global biometric bank banking revenue expected to be as high as $4 billion by 2021.
The wide adoption of mobile devices with an integrated biometric system allows the evolution of biometrics in the banking industry. More and more smartphones and tablets are equipped with biometric scanners for the authentication process within a mobile banking platform. To cite an example, credit card customers can authenticate online payments by scanning their fingerprints or taking a selfie. In this way, users are already prepared for biometric authentication in mobile banking and ATMs.
In relation to Online Banking, there is a greater use of biometric devices to capture Unique Identities at the beginning of the contact. Building on national identity programs, banks use identity credentials extracted from identity cards to provide strong authentication for customer transactions. Likewise, facial biometrics is another tool that allows the digitization of financial activities. Through it, users can verify their identity and conduct online banking transactions. It is a solution that is easy to implement and use, both for the bank and for the mobile banking user, which allows the client to have secure access to the system from a computer or smartphone or with a video camera.
Mobile banking adoption is booming in the country, while biometric fingerprint identification at ATMs is still in its infancy.
Banks are gradually digitizing their operations and responding to the needs of users, who benefit from not having to memorize countless passwords in order to carry out banking transactions.
Biometric solutions therefore represent a turning point for bank security. In the financial industry, the implementation of biometric authentication methods is essential to build customer trust and raise the level of protection in banking transactions. Banks’ adoption of biometric technology improves the end-user experience and helps resist fraud and identity abuse.