A new report by financial holding business BBVA Compass has revealed that the rapid adoption of biometric authentication in smartphones shows no signs of slowing down, and has the potential to revolutionise the financial services industry.
We’ve put together the five key takeaways from this interesting report.
Read the full report
- Cyber Crime
The proliferation of mobile technology has expanded the possibilities of the internet to the farthest ends of the earth but has also been accompanied by a rise in cyber attacks. According to the Center for Strategic and International Studies (CSIS), the cost of cybercrime to the global economy is around $450bn.
- The Biometric Response
Security technologies have been developed in response to these cyber attacks, the most promising being biometric authentication techniques. It is estimated that by 2020, biometrics will be used to authenticate almost 65% of all mCommerce transactions. Other estimates indicate that the global biometrics technology market will reach $22bn by 2020. In the financial services sector alone, the market value could reach $8bn by 2020.
- Biometrics: Beyond Fingerprints
The banking industry has been experimenting with fingerprint recognition technology for some time, in fact a 2012 survey among 121 banks using biometrics revealed that 48% prefer this technology. However, newer biometric authentication options are gaining ground, with voice, iris, vascular and facial recognition solutions becoming more common. It looks increasingly like physical cards, PINs and passwords are becoming obsolete.
- Why Go Biometric?
Biometric authentication offers a competitive advantage for financial services businesses, boosting security and trust for customers. Biometrics can also improve the customer experience by simplifying and speeding up transactions. For the business, biometrics can improve transparency and data analytics, while lowering costs and facilitating compliance.
Growing biometric solutions aren’t without their challenges. Security breaches of biometric data for banks incur significant losses. There is also a need for increased standardisation of biometric data collection and use, when multiple vendors are involved in the production chain. Despite this, biometric security looks set to grow rapidly to improve security, the customer experience and improve transaction efficiencies.