Biometric technology could soon effectively replace PINs and passwords in the financial services sector, according to a new report from economists with the BBVA Compass financial services group. The researchers based their conclusions on analysis of the US economy as well as the Federal Reserve’s monetary policy.
The BBVA Compass researchers note the fast rise of biometric authentication on mobile devices as a sign of things to come in the world of financial services more broadly. In a statement, BBVA Compass Chief Economist Nathaniel Karp said it’s “growing at a fast pace and shows great potential to protect individual data and enhance customer experience, particularly in the banking industry,” and pointed to a near-term future where “biometrically-enabled devices become standard”. The researchers assert that biometric technologies in the financial sector alone will be worth billions by 2020, and suggest that younger demographics’ openness to such technologies will be a driving factor.
The report’s findings are very much in line with a broader consensus among market analysts that biometric technology is increasingly prominent in banking, and indeed that the financial services sector is a major driver of the overall biometrics market. And while security experts have long called for the death of the password, it may finally be approaching at least in the world of banking, given the popularity of biometric authentication on mobile and its promise going forward.
July 27, 2015 – by Alex Perala