Shopping with a glance to the camera, transfers with one swipe, loans, and deposits from home have already become available. But before biometric technology can be used everywhere, it is necessary to educate users on how it works and prove the security and convenience of the new technology.
Biometric data is a unique physical characteristic of a person used to identify or authenticate a person. These include the face, lip movement, retina, fingerprint, vein pattern, and voice. Organizations collect biometric customer to improve security, convenience, and speed of customer service, as well as for national databases. This system enables citizens to become customers of banks, stores, and other organizations without visiting the office through remote identification.
According to KPMG's Global Bank Fraud Survey 2019
, 67% of banking leaders invest in physical biometrics tools such as voice, fingerprints, facial recognition.
The Indian biometric system Aadhaar contains more than 1.2 billion biometric data templates of the citizens (fingerprints, iris) to provide them both public and banking services;
South African ABIS system contains fingerprints, iris, and user photos for social and financial services;
Thailand's Digital ID system allows customers to open bank accounts remotely using facial recognition technology to ensure process security.
Also, many European countries actively produce biometric bank cards for their users to make unlimited transactions. The biometric card has a fingerprint chip for confirmation.
Facial recognition systems are improving every day. In China, Baidu company is making significant efforts to develop and apply artificial intelligence programs. In many ways, Baidu's development outperforms Western competitors, especially in the field of facial recognition.
Baidu has implemented its developments not only in biometrics and face morphing applications but also in recommendation systems. In conjunction with KFC, they opened Smart Restaurant in Beijing
, where guests can order the dish based on individual recommendations depending on gender, age, and facial expressions.
In mid-February 2020, Baidu released software that recognizes people without masks
, which became mandatory in China, where the coronavirus epidemic was raging. Facial recognition technology has the potential to fundamentally change today's environment and the way people choose, order, and pay.
To provide biometric data, the client has to visit the bank branch once and hand over his data. After that, users of the system can remotely become customers of other banks without visiting the office and providing a passport. The user can become a client of the bank without leaving home, which is especially important for people living in remote corners of the country, as well as for people with disabilities.
Biometrics simplifies the client's path, as you will not need a passport or card to verify your identity when servicing in physical channels and contact centers. The technology recognizes customers at the entrance to the office, confirms the conduct of operations, and forms the best customer offer.
Besides, biometrics is a tool to combat fraudulent transfers: technology helps to recognize a fake or lost passport, and in a mobile application with a selfie - to confirm atypical for the customer transactions (for example, card-to-card transfers, uncharacteristic amounts of transfers, online payments, closing the deposit ahead of schedule).
Another area of use of biometrics is to control access to customer data for bank employees and internal fraud protection.
A relatively new direction of technology development is bioequiring. Clients can use it to pay for purchases by looking into the camera when the biometrics are tied to their card or account. It allows customers to pay for purchases faster and stores to reduce their costs. Instead of the average 15 seconds, the entire biometric payment process will take no more than 5 seconds.
Biometrics has already been added to the list of services of many world and national banks. The small number of clients using biometrics is due to a lack of awareness of this possibility. For the biometric templates to become frequent, the technology must extend widely beyond the banking industry. For example, biometrics will be valuable for remote examinations in educational institutions, services for notaries, court proceedings, and so on.
Another reason is the greatly exaggerated fears associated with possible leaks of biometric data. However, recorded photos and voices are stored as a mathematical model, and it will not contribute anything to fraudsters or intruders. Biometric systems are a reliable and proven mechanism to improve the security of remote interaction
between customers and organizations.
However, biometrics should be an additional, not the only factor to verify the identity
, since photos, videos, and the voice of a person are not secreting. In theory, it can be collected and used without the awareness of customers.
Today, the client can choose different identification methods: a regular PIN or password, fingerprint, voice recognition, video check, etc. However, biometrics as a second or third authentication factor can greatly improve data security and customer experience. Although users are wary of providing biometric data, world experience has shown that using it makes it much easier for customers to interact with banks.
Biometrics can become vital when the client is going to actively open accounts and new products in banks in the conditions of epidemiological restrictions. Influenced by the COVID-19 pandemic, the technology began to evolve faster
. The pandemic has shaped the trend towards contactless and remote technologies. Biometrics expects its peak when users are convinced of the benefit and security of the technology.