Biometric technology has many opportunities to change banking.
Learn how biometrics is changing the banking world.
Today’s technology has vastly improved security, especially biometric technology. We primary see this technology in smartphones and other mobile devices. However, now biometric technology has the ability to potentially improve various business fields, especially banking. Today, hackers have a lot of resources that can cause you harm, whether it may be identity theft or making fraud purchases. With biometric technology, we can improve the security in the banking industry in various ways.
Biometrics technology is a new and emerging automated technology that focuses on identifying an individual based on a physiological or behavioral characteristic including faces, fingerprints, handwriting, eyes, voices, and a lot more. This technology leverages the fact that these features are distinct and unique for everyone, making it very challenging to replicate or create a fraud.
The general procedure of how a biometric system operates is it first takes an image of the needed body part. It will then compare this to its database to ensure that the image is a match, and if it is, the individual is identified and confirmed. The banking industry is able to leverage this technology to ensure that the right individuals are accessing confidential items. This can drastically decrease identity theft and fraud. Here are some of the ways that biometric technology can impact the banking industry:
Biometric Fingerprint and Banks
Biometric fingerprints is one of the most used methods for user authorization. Recently Lloyds Banking Group, a major financial institution, has teamed up with Microsoft to help their users access their banking services through fingerprints and facial recognition. With this new authorization system, users can authorize payments, as well as, login, which significantly improves the security of the system. With this new system, banks are now able to provide more seamless security experiences for their users.
Wells Fargo and iPhones
Today’s iPhone allows users to access their phones with their fingerprints, thus slowly making long passcodes obsolete for these devices. Recently, Wells Fargo has implemented a new authorization system that allows users to use this fingerprint to sign into their mobile app to access their banking services. Instead of having to log in with a username and password, Wells Fargo leverages Apple’s two factors of authorization to speed up the process.
Korea’s Biometric Iris Authorization
KB, Kookmin Bank, is one of the biggest banks in South Korea. With the help of Samsung, they have been able to implement a new biometric system that can authorize users with their irises. They are able to leverage the new Samsung Galaxy S8’s camera to scan the user’s iris to give them access to their accounts. Previously, users had to go through a tedious multi-step process to access their account. However, with this new feature, their user experience has significantly improved.
Biometrics and ATMs
Ujjivan, one of India’s biggest finance companies, is planning to take ATMs to the next level. Instead of using your debit card to access an ATM, Ujjivan is hoping to implement biometrics to identify and authorize users. While some banks in the United States offer an access code through their mobile devices, biometrics could drastically improve the user experience.