Studies show that three out of four bank clients are comfortable with biometric authentication. And this is excellent news, as biometrics offers many advantages for users and banks. Let’s discuss them as well as popular use cases.
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What are Biometrics in Banking?
Biometrics in banking allows the use of physiological or behavioral characteristics for authentication during account access and transactions. Thanks to this, digital operations become more secure and convenient.
Bank card with fingerprint tech concept glowing lines, 3d rendering. Computer digital drawing.
Biometric authentication methods include facial or retina recognition, fingerprint scanning, voice recognition, and behavior.
Benefits of Biometric Authentification for Banks
Banks employ biometric authentication to provide customers with more convenient and secure services.
Compliance
With biometrics, it’s easier for banks to meet anti-money laundering (AML) and know-your-customer (KYC) requirements. Financial institutions start using it right from an account opening to understand who they are dealing with.
Fraud detection
Most security measures in banking software aim to protect against fraud. In the context of authentication, organizations use a multi-layered approach. It involves combining what the user knows (password or PIN) with their unique physical traits (biometrics).
Convenience
Delays in data validation and the need to enter large amounts of information lead to a negative customer experience. Biometrics allows banks to conduct quick and convenient identification.
Use Cases of Biometrics in Banking
What possibilities does biometric authentication provide for modern banking? We have selected five popular use cases.
Customer Onboarding
This stage of interaction is the most risky, as there is limited available information about clients. It’s important to start with the highest level of identification to filter out potential criminals as quickly as possible and speed up account opening.
Re-Authentication
Re-authentication is crucial because legitimate accounts can still be compromised in subsequent client cycles. Biometrics allows you to constantly verify that a specific person requesting access to an account is the same person who created it. Employ it when resetting the password, changing personal information, adding a new device, etc.
Mobile Banking
Criminals often steal usernames and passwords. In such cases, biometric authentication is a more secure method of making payments and other digital banking services. Protect your customers and increase their trust in your bank.
ATMs
In many developed countries, biometrics has already reached ATMs. Banks integrate fingerprint recognition technology, so customers just need to put their fingers on the sensor. Then, they can check their balances or withdraw cash — without a physical card or PIN.
Bank Branch
Want to ensure that only authorized individuals have access to safes? Or quickly identify customers at the service desk? Biometrics will also be useful here. You can use a fingerprint, an iris scan, or facial features for this.
With S-PRO, you can get a system integration of your existing banking software or create it from scratch. Contact us to learn more.
