Biometric technologies for the financial sector

The popularity of biometric technology is growing worldwide every year. Analysts predict that the global market for biometric systems will grow from $2,359.7 million in 2016 to $15,145.5 million in 2025. Biometrics is mostly in demand in the government and financial sector, defense, healthcare, and retail. FindBiometrics predicts that in the next few years the biometric systems market will be most actively developing in the commercial segment.

Several years ago, banks only needed to offer cheaper products and services to attract new clients. Today, the picture is rapidly changing, and users prefer convenience and reliability. Biometric technologies are becoming one of the important instruments for implementing the concept of customer focus, allowing not only to ensure an appropriate security level of financial transactions but also to accelerate the process of serving customers both at traditional branches and through remote service channels.

The most common types of biometric data used in the financial sector include facial images, fingerprints, hand geometry, and iris patterns. These data can be used to identify customers in online banking, provide access to financial services at self-service devices and bank branches, and allow access to safe deposit boxes. The most popular in the banking sector is two-factor authentication using a PIN or one-time password and biometrics, which allows the highest level of data security and access control.

Points of Optimization

Data Security

Optimization of service processes

Improving customer service

Secure access to personal data

According to Verizon, 81% of data breaches worldwide in 2017 were due to improper use of accounts, including stolen or weak passwords. The number of such leaks and the costs related to them is increasing year by year. Banks are forced to consider how to secure client data and avoid losses due to unauthorized access.

One of the most reliable methods of user authentication is biometrics. Biometric data cannot be faked, stolen, or otherwise used without the knowledge of its carrier. The use of biometric data for authentication at self-service devices provides a high level of security during transactions, eliminates the need for users to carry payment instruments, remember passwords or PIN-code from the card, and reduces the transaction time.

Corporate data and systems protection

The problem of internal fraud and unauthorized access to data via employee accounts is facing financial institutions around the world. Banks are in search of solutions that can protect their internal data infrastructure and are increasingly opting for biometric technology. Today, about 30% of all biometric systems in the banking sector are used for corporate purposes.

Biometric technology for employee authorization provides the required level of data security and access control for sensitive information, as well as providing ample opportunities for monitoring the performance of employees in a financial institution.

Compliance with KYC policy

Nowadays, compliance with KYC (Know Your Customer) policy is one of the regulator’s requirements and conditions for financial activities in a number of countries, as it helps prevent money laundering, terrorist financing, and tax evasion.

Using specialized software solutions that provide user verification and authentication using biometric data not only makes it possible to adhere to the KYC requirement but also ensures a high level of transaction security.

Advantages

Secure user authentication and authorization

Data access control

Control over employee activities

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