Biometrics in banks of the future
The bank card PIN-code has long been the best method to protect the customer’s savings. But it have been jeopardised by constantly improving fraudulent schemes: using the counterfeit keyboards attached to the original ATM keyboard reveals the treasured number to the fraudsters.
The search for solutions led to the idea of introducing biometric identification, to which the leading foreign banks are gradually passing. This system allows to identify the user of banking services by a fingerprint, the iris of the eyes, a combination of voice and photography or a vascular pattern of the palm.
Advantages of the technology for customers
Biometric technologies make it easier for users to get banking services.
- No need to remember passwords.
- Even if user has forgotten the card in the house, he/she can still withdraw money from the ATM or make a purchase in the store due to a multifactor biometric identification.
- In the event that a pin-code card has been stolen, the scanners will detect the difference and will not allow the fraudster to withdraw cash.
- A smartphone is a personal biometric device (in case of choosing mobile payments and transfers), it is always with us.
- Customers got an access to the depository, and the human factor is excluded from the process.
Benefits for banks
Financial institutions also benefit by raising the level of information security. In most cases, biometric identification does not displace the existing system, but harmoniously complements it, acting as another protection method, along with pin-codes and sms-confirmations. Especially it concerns emergency cases, the withdrawal of large amounts of funds at one time and taking loans.
After the introduction of such verification, it will not be possible to write out a loan solely with a copy of the passport in any city — the biometric data of the user obtained at the regional office will be sent to the central office for verification.
The introduction of biometric identification by banks automatically improves their reputation and turns them into technological leaders. This measure attracts new customers, becoming a significant competitive advantage.
Biometric verification already works in a number of mobile banking applications. The system was introduced once the first iPad and iPhone models with the Touch ID panel came out.
Now, the solution is actively used not only by foreign, but also by Russian financial institutions. Alfa-Bank, Sberbank, Tinkoff Bank and MTS Bank have already made it possible for smartphones equipped with biometric sensors to access the application using a fingerprint. Russian banks are not going to stop there: Binbank will introduce voice recognition and photo identification in the next two years.
ATMs, POS-terminals and branches
The future has already come: fingerprint reader is installed at the Diebold ATMs (one of the world leaders in the field of ATM supplies).
Polish company — Planet Cash owner — plans to set with the support of Japanese developers about 2,000 ATMs capable to scan fingerprints throughout the country. In Russia, this innovation is planned to be introduced in the next 2–3 years.
Pennsylvania bank use this system creatively: biometric scanners are in the operating windows. The person who visits this bank for the first time scans the fingerprint and confirms the identity with the appropriate document. During the next visits he will only have to put his finger on the reader, and his account will be identified.
Photo identification is gaining more and more popularity abroad: in early 2017, MasterCard added a user verification function using selfie and scanned fingerprints to make payment or transfer. The Chinese company Tzekwan Technology in cooperation with Tsinghua University invented an ATM photographing the user, identifying the cardholder’s face and comparing it to the card data.
According to experts’ forecasts, the system of banking biometric identification will be introduced everywhere after a few years.