November is Financial Biometrics Month at FindBiometrics, so for the next four weeks we will be examining strong authentication and identity tech in commerce. To kick things off, we have compiled a primer to serve as a snapshot of the biometrics in financial landscape. Read on to get up to speed on the world of biometric FinTech.
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We’ve just come back from this year’s Money20/20 in Las Vegas, and in terms of industry events there is no better place to see just how integral biometrics are becoming to financial services. FindBiometrics president Peter O’Neill moderated a biometrics in finance panel for the third year in a row, and this time the event exceeded the venue’s 1000 person capacity causing fire marshals to close the doors on the hall. That’s the level of excitement the financial services and FinTech industry is feeling for post-password solutions right now.
The conference on the whole is a veritable who’s-who of biometrics companies and organizations, all poised to take advantage of the soaring demand for biometrics in FinTech. Take a look at our Money20/20 featured coverage from last week to get a picture of how big biometrics are getting in the world of finance:
The biometrics-related financial services markets are dynamic and experiencing growth. This is especially true when it comes to mobility and payments. Recent research shows biometrics as a necessary component when it comes to the adoption of mPayments, while the overall mobile biometrics market is speeding up in financial services as consumer devices continue to feature integrated authentication solutions enabling mobile commerce. The links below lead to research report stats and industry analysis which will give you a good idea of the financial biometrics markets as they are looking right now:
The Many Modalities of Financial Biometrics
The financial biometrics landscape is maturing into a robust area capable of supporting all kinds of modalities. From finger vein, palm vein and eye vein, to iris, face, voice, and fingerprint recognition, to emerging tech like cardiac ID and behavioral analytics – the vast range of biometric modalities available for financial applications is enabling strong authentication and advanced identity management technology to permeate every aspect of commerce where money and people connect. Becasue financial services are aiming to reach everybody, the flexibility of multimodal biometrics is very appealing. That’s why we’re seeing future-proof authentication platforms become so popular in FinTech: because they offer banks, payments providers, developers, and customers the authentication options they demand.
The Mark of Innovation
Biometrics are becoming something of a status symbol in FinTech. Established players in financial services are being lauded for their embrace of biometrics in their consumer-facing applications as banks and payment networks are investing in the technology with great frequency. In the current security climate of massive corporate data breaches and increasingly sophisticated cyber-fraud, financial institutions are being recognized for integrating biometric security into their offerings.
Thanks to popular mobile wallets like Samsung Pay, Apple Pay, and Android Pay, biometrics are quickly becoming synonymous with mobile payments. Each of the listed payment platforms can leverage fingerprint biometrics to authenticate point of sale transactions, and Samsung Pay has even expanded its wallet to allow for iris scanning as a security factor (once the modality reemerges on upcoming Galaxy smartphones). Biometric payments are even expanding to the online marketplace, with Apple having launched Apple Pay for the web, and Samsung Pay not far behind.
Check out these recent articles to learn more about how biometrics fits into the modern mobile payments landscape.
While the past few years have all been focused on paying with your phone instead of your card, the pendulum might be poised to swing back in the other direction. Smart cards are the next big battleground for fingerprint sensor manufacturers vying for integrations, and that means biometric credit cards are on their way to your wallet. Just last week we saw two smart card solutions demonstrated at Money20/20, while popular sensor company Fingerprint Cards announced that its tech is being integrated on another dual interface card. Learn more about the advent of biometric credit cards at the links below:
No Device, No Problem
While the prominent use case for biometric payments is the smartphone mobile wallet as described above, biometrics companies are working with financial institutions and governements to find innovative ways to pay only with biometrics – no device required. Two projects underway in Japan could see tourists paying with only their fingers or faces by the time the next Summer Olympics roll around, and Safran has been working with Visa on a way to pay with the wave of a hand. Here are just some of the ways biometrics will keep you attached to your accounts even if you lose your wallet and phone.
Moving on to banking, we are seeing institutions all over the world pick biometrics to secure their mobile apps and corporate accounts. And it’s not just fingerprint sensors doing the job, either. Biometric software is letting customers bank on their phones by taking a selfie, speaking a dynamically generated phrase, or even scanning an eyeprint. Vascular biometrics are replacing cards at a Japanese bank, and a similar system has been piloted at three Gesa Credit Union branches in Washington. In the world of banking, especially on mobile, biometrics aren’t just some hopeful possibility or exciting pilot project anymore: they’re the real deal.
Biometrics are expanding to ATMs all over the globe, too. Fingerprint, iris, and face recognition seem to be the dominant modalities in this field, which has seen a number of showcases, demonstrations, and announcements over the past year. We are even seeing the world of consumer mobile biometrics intersect with the realm of next-gen ATMs thanks to a cardless transaction kiosk that leverages the iPhone’s Touch ID.
Over The Phone
While the touch screen and computer monitor might be some people’s prefered method of banking, there is still an important place for the call center in today’s financial services environment. And like all things that have to do with money, phone banking is high risk. That’s why voice recognition biometrics have taken such a strong hold on this niche market. By introducing voice biometrics to the financial call center, institutions ensure an easy experience on behalf of the customer caller – ditching cumbersome security questions – while also making sure security is as good as it gets.
Take a look at the voice biometrics deployments in phone banking bellow:
Stay posted to FindBiometrics throughout the month of November as we take a more in-depth look at the world of financial biometrics. Be sure to register in advance for our Financial Biometrics Month webinar, Biometrics Beyond Payments: Multi-Factor Security And The Fight Against Fraud.
November 3, 2016 – by Peter B. Counter