How Biometrics Is Impacting the Financial Industry
Biometrics are a top initiative across the financial industry, contributing to a shift in how financial institutions manage and reduce data related risks. With cyber attacks becoming more frequent and sophisticated, passwords are no longer sufficient for keeping customers’ information safe. Verizon’s 2017 Data Breach Investigations report found 81% of data breaches were a result of stolen or inadequate passwords.1 And a recent study from Visa shows that 46% of respondents [believe] that biometrics are more secure than a password or PIN.2
The good news is that financial institutions are already starting to use biometrics as a security measure to keep customers’ financial information safe. According to a recent report, “the most popular account use for biometrics is financial services, with 17% using them to access personal banking, and 5% to manage investments online.” 3 The study goes on to report, 58% of participants were very comfortable with giving their fingerprint in biometric form.3
But the security benefits are only the beginning. Biometrics also create a better customer experience by making it convenient and easy for customers to log in to their accounts automatically. Further, they give people the ability to manage their identity more securely. Suzanne Barber, Director of the Center for Identity states, “each day and many times a day, people must prove they are who they say they are. Managing one’s identity credentials from passwords to driver’s licenses to loyalty cards can be a real hassle.”4
Today, the most common forms of biometrics are fingerprints, retina, facial recognition, and voice. But as they continue to become more prevalent, we’re seeing innovations in the space including behavioral patterns, hand geometry, iris scan, ear shape, gait, vein recognition, typing patterns, and even odor detection5 as new forms of security and convenience measures.
Biometrics is undoubtedly shaping the future of security and customer experience in the financial industry. With this kind of forward-thinking innovation, financial institutions are well positioned to offer customers a superior mobile app experience with unmatched security and convenience. In fact, a recent study found that 44% of people surveyed consider ease of use to be a significant factor when deciding whether to download such apps.6