The banking Industry is going through an age of turbulence. With the upsurge of technological accuracy, risk in banking industry is also evolving. Incidents of fraud are increasing and becoming a threat both for the consumers and regulators.
At the end of January 2016, HSBC came under a cyber-attack leaving consumers unable to access online banking services for hours. The incident took place on the last working day before people had to file their online tax returns. It was the second time in five months that HSBC faced a situation like this. This was an example of a hacking attack on a financial institution, making the case for biometric security. Consumers, too, are starting to appreciate the need for biometrics in banking services like branch banking, online banking, ATM networks and mobile banking. Because of the technological advances in many different fields of electronics and computing it is now possible for an individual to have their identity verified based on their physical and behavioral traits such as finger print, finger vein or palm vein pattern or iris recognition. Nowadays, it is widely considered to be more dependable than personal identification number (PIN) or password for verifying individuals.
The recent and rapid rise in banking fraud and identity theft should send the message very clearly that banking system, as we knew it, is under grave security threats. So, the banking system requires more sophisticated security methods, so that the customers are able to rely on something they have or something they know. Regulators of financial institutions of the western countries are imposing biometric security systems in place of traditional PIN, passwords and tokens that are now verging on being obsolete. Those security keys are easy to forge and proving increasingly ineffective in protecting customers’ information. On the other hand lack of proper security technologies and poor authentication techniques can cause a financial data breach which leads customers to significant economic loss with large regulatory fines. This leaves the service providers with no other choice but to applying biometric security for protecting identities, financial information and providing smooth banking experience in all of the formats.
“Biometric identification is either just as secure as or more secure than the current systems of passwords.”
End of the Password Age
Biometric security is suited for banking industry and offers advantages both for the banks and the consumers. Forms of identification like password are easily counterfeited and easily increase the tendency of identity theft.So the regulators are looking for solutions like two factor authentication and voice verification to secure consumer information and identity. Biometrics has been embraced as “the first key to the first door of many in a vibrant security system.” On the other hand, passwords are tough to memorize where biometric authentication is a unique solution for the customer.
The traditional safeguard of entering long account numbers and answering the security questions are problematic for many reasons. One important reason being it is bothersome for many people. The process is long and tedious. Particularly considering we live in the age of high speed “everything”. But at the same time banks need to confirm the identity of the customers. Read more about free bonus no deposit casinos. Here, voice recognition can be a logical solution. This process takes few seconds to complete the authentication voice input is given to the machine. A voice is tested on 130 characteristics of vocal patterns to match the stored data.
Fingerprint identification is number one requested feature for mobile users to stop access into mobile phones without permission. Users can save their fingerprints on their smart devices to get access without the passcodes. Most current smartphones in the market with this feature now let users store several fingerprints in case people want to sign in with a different finger or let a family member or friend have access to the phone. The same technology can be used for accessing the banking app.
Blink is used to prove our live image so that nobody can try to trick the system with a photo.
It is a process in which customers record their faces using their smartphone camera including a blink. Blink is used to prove our live image so that nobody can try to trick the system with a photo. This adds much more usability
and convenience to the biometric security system. If someone is in a noisy place, they can use facial recognition, or fingerprint and voice recognition for dark or dimly lit places.
ATMs iris scanners
Eye scan is the latest reliable biometric security process. During withdrawal of cash from the ATM, we no longer need to use fifty years old plastic card
technology. The next generation ATM with iris scanner can accurately identify the account holder. The technology is based on the biological feature that two human irises will never match. In this format, the ATM doesn’t have screen like
the traditional ones and the transaction information will have to be entered on the user’s mobile app. Later the iris scanner takes a quick video, matching it with the one previously registered into the system. On the other hand, adopting biometrics in banking ATM service improves consumer experience, eliminating the security loopholes of using the traditional password and PIN to perform carry out transaction.
Biometrics in Branch Banking
A bank can provide better authorization process to its customer by implementing biometric security. When customers enter into a bank branch, the system can identify them using fingerprint or finger vein biometric scanners that can be matched with the existed data in the bank’s database. After doing this, customers can easily go ahead and complete a successful banking transaction. It may help to maintain an accurate audit trail of every transaction what can prevent fraudulence initially.
Biometrics for Online Banking
Online banking is now a very popular form of banking because of its easy transaction procedure from anywhere, using smart devices like laptops, computers and smartphones. But it’s too risky to complete a successful transaction as fraudsters are using the latest trends of technology to gain access to banking infor mation. By adopting the security steps like fingerprint scanning, facial recognition, and voice recognition, online banking system can protect their customers. Most of the smart devices have webcams, microphones and fingerprint scanners to ensure security of online banking services.
Biometrics and Mobile Banking
Mobile banking is getting popular throughout the world very rapidly. But most of us are not willing to rely on mobile banking system due to the security issues. Biometric securities like voice or
speech recognition system, where the consumers need to verify their identity in using the smart devices, should be the perfect solution.
Economic advancement of a country is dependent on and measurable through the success of bank and financial institutions. With the latest technologies providing potentially impeccable security there can be no reason for the modern banks and financial institutions to not embrace and incorporate these mechanisms. Biometric technology now offers what previously was thought impossible: an impenetrable security and no hassle transactions. The integration into a new system, however, will always require the persuasion of time. But the institutions that will stay at the top of their game are not waiting until time makes the current system obsolete.
Online banking is now a very popular form of banking because of its easy transaction procedure from anywhere, using smart devices like laptops, computers and smartphones.