Biometrics to Take Lead in Banking Authentication
London-based consultants Goode Intelligence predicted by the end of this year some 450 million bank customers globally will be using biometrics, which will be the principal banking authentication method by 2020.
In a new report, “Biometrics for Banking; Market and Technology Analysis, Adoption Strategies and Forecasts 2015-2020,” Goode Intelligence revealed that biometrics in banking is already a maturing industry with many successful implementations around the world.
According to Goode Intelligence, biometrics is being adopted across all of the major bank channels bank customers are using biometrics in a variety of bank scenarios including withdrawing cash from ATMs, proving identity when contacting their bank via telephone, authenticating into their mobile bank app using fingerprint and using a combination of face and voice to fulfill Know Your Customer (KYC) and Anti-Money Laundering (AML) measures when accessing web-based e-banking services
Growth in the banking industry will be accelerated by a number of factors including the arrival of electronic devices with built-in biometric support (notably smart mobile devices), the adoption of biometric-friendly authentication standards such as FIDO, the pressing need to combat rising banking fraud and identity theft, the growth of mobile banking and the emergence of wearable banking.
"There is a growing desire from the banking industry to adopt convenient methods to verify the identity of their customers and this is creating the conditions to drive the adoption of biometrics in banking even higher. Alan Goode, author of the report and founder of Goode Intelligence, said
"Banking adoption of biometrics is creating a booming biometrics industry with biometric vendors experiencing tremendous growth on the back of the escalation of consumer-led adoption of biometric authentication,” Goode added. “The adoption for banking purposes is a major contributor to this growth and we are forecasting that by 2020 it will contribute U.S. $5.5 billion in revenue for companies involved in delivering biometric systems to the banking industry."
Goode added "This is not just about Apple’s Touch ID and fingerprint biometrics, our analysis of the current and future adoption of biometrics for banking informs us that at least eight separate biometric technologies will be used by hundreds of millions of bank customers around the globe.” Finger, vein, hand geometry, facial, voice, iris, signature and keystroke recognition will play an ever increasingly important role in reducing the burden on financial institution customers to remember and secure passwords.
A clear majority of Americans feel that biometrics would improve banking security, according to a survey by telecommunications firm Telstra. In Telstra’s survey, more than two-thirds of U.S, respondents said that biometrics would be more secure and help reduce the risks of fraud.