Biometric Identification Technology for Banking
Biometric identification technology helps the banking sector to keep intact security and customer convenience. It helps reduce online risks and financial crimes.
This global digitized world is prone to several security challenges. It is hard to distinguish between an honest and impersonated identity in the online world. Identity verification of online customers, therefore, is crucially important to combat malevolent cyber activities.
Another challenge is to ensure user experience along with security aspects.
What is biometric identification?
Biometric identification technology came up with various use-cases that contribute to online identity verification keeping intact both security and efficient user journeys.
Biometric Security System such as facial recognition is the widely adopted technology that holds more popularity and is praised all over the world. Organizations worldwide are stepping forward to the adoption of biometric identification technology to combat online frauds.
Variations are used such as voice recognition, fingerprint scanning, facial recognition, iris/retina scanning, and palm geometry verification. The banking industry that is prone to financial crimes is in severe need of taking in place security measures.
Revamping Banking Norms with Biometrics
Banks and other financial institutions are prone to various attacks that could be in the form of cyberattacks, money laundering, and even terrorist financing. Customer’s digital journey, as well as security, are two parameters to sustain efficient banking norms.
Instead of mere passwords, the banking industry needs a higher level of security. Facial recognition technology online can help deter the risks of various frauds that are generated due to unauthorized access to confidential databases. It helps:
- Reduce banking operational risks
- Provide a cost-effective solution
- Ensures requirements of regulatory compliance
- Provides improved customer experience
Fighting against Credit Card and Phishing Scams
In the online banking industry, credit card and chargeback frauds are performed that affect the banking norms when they have to pay the monetary cost. Similarly, phishing scams are the major reason that makes online bank portal vulnerable to use and lower the trust level.
Banks and other financial institutions should take in place dynamic measures to identify the onboarding customers at every access.
Using biometric verification online can help in robust identification and does not affect the online user journey. It is important to lower the process abandonment rate and ensure security at the same time.
An authorized/controlled access to online user accounts is an answer to various frauds the banking industry could face. The advent of the Fintech industry demands biometric authentication most.
As customer data is shared among multiple organizations to provide a centralized interface that helps in better budget management and digital payments. To fight against payment scams in the Fintech industry, biometric authentication could serve the purpose.
Benefits of Biometric Identification Technology Online
As discussed above, convenience is what we get for free with biometric verification along with security. Not only in banks but at the industrial level, biometric identification technology is harnessed to its full.
Following are some other benefits listed:
- Customers do not need to remember passwords anymore, with facial recognition the verification process can be performed in seconds. Users would be able to have controlled access over their accounts and therefore can help reduce bank frauds.
- Facial recognition helps use facial features and match them against various databases of criminal records. This helps reduce money laundering and terrorist financing by screening customers against the list of criminals.
- Streamlined customer identification lowers the process abandonment rate.
- Using biometrics in mobile banking ensures secure digital payments and will save the future of Fintech
- A centralized interface, the gift of Fintech can be managed by biometric verification to secure the while financial information of customers from scammers.
Face Recognition are available that provide digital customer verification services and help reduce risks in the banking sector.
Biometric authentication empowers banks by integrating digital services and provide customers with convenience while conducting banking practices.