Biometric technology is becoming part of our everyday lives. The use of human characteristics such as voice, fingerprint, palm vein or iris patterns for identification or task initiation is now commonplace for many consumers. Today's smartphones have put fingerprint authentication into people's pockets, while Amazon Echo and its Alexa voice service has brought voice command technology into peoples' homes.
The biometric trend has significant implications for financial services, particularly in the area of authentication. Replacing passwords with fingerprints can simplify the login process for mobile banking apps, palm or iris scans can shorten authentication times and speed up teller lines in the branch, while voice recognition can help prevent fraud and the use of shared credentials.
Improved Experiences in the Palms of Consumers' Hands
As consumers have become comfortable with fingerprint authentication capabilities, such as Apple Touch ID, they have also become comfortable with the idea of using such capabilities as part of their everyday financial management. In the Fiserv Expectations & Experiences quarterly consumer trends survey, mobile users named fingerprint login as the feature they most wanted to see added to their mobile banking app. This type of authentication can make it quicker and easier for members to access their accounts and has positive implications for security.
In the branch, biometric authentication can replace inefficient, manual processes. Fiserv recently announced the integration of palm vein reader technology from Fujitsu into the DNA core account processing platform. The technology's palm vein sensors use near-infrared light to capture a user's palm vein pattern to authenticate members, eliminating the need for them to fumble for photo IDs and account numbers.
Enhanced Security
In the face of increasing fraud threats and data breaches, the use of biometric technology such as palm or iris scans for authentication can provide added security and reduce risks associated with passwords and other conventional security systems.
To authenticate account holders in the branch, unique biometric patterns can be matched against the patterns of pre-registered users to add an extra layer of security to sensitive transactions, such as withdrawing funds or accessing a safe deposit box.
Biometric technology also can be used to enhance security for tellers and branch staff. Logging into a system using fingerprint or voice recognition can ensure that only authorized users gain access to credit union systems and prevent the use of shared credentials. Authenticating employees and their actions with biometrics gives credit unions the opportunity to enforce internal security measures and create an essential audit trail.
In the mobile realm, biometrics can work with other technologies to help detect fraud. For example, combining voice recognition with geolocation when a mobile payment is made can help to answer the question of whether the transaction is typical for this user.
Efficiency Gains
Saving staff time and increasing process efficiencies are additional benefits of implementing biometric technology. One Fiserv client that recently implemented palm vein reading technology reduced the time it takes to authenticate a member in the branch by 93%.
For members and staff, time spent on password management, including resetting forgotten passwords, can be reduced or eliminated. With biometrics still in the relatively early stages, back-up authentication methods still need to be in place, enabling a member or teller with a bad cold to log in with a PIN instead of voice recognition, for example.
Targeted Marketing and Tailored Services
Pairing mobile devices with in-branch technology offers opportunities for targeted marketing and personalized member services. In this scenario, the credit union could use an iBeacon or geolocation to identify a member as soon as he or she enters the branch and then push out a notification for the member to authenticate using their Touch ID or the in-branch palm vein device. Once authenticated, the mobile app could then direct the member to a branch representative who already knows who they are and is prepared to assist them.
The Future of Biometrics and Banking
Evolving device capabilities will play a major role in the adoption of biometric technologies. As emerging technologies find their way into new devices and mobile operating systems, they will drive the critical mass needed to fully exploit the benefits and applications of biometrics in banking.
Although biometric technologies are still relatively new, experience shows that most people quickly accept and appreciate the technologies once they interact with them first-hand. Before rolling out these technologies, credit unions will want to make sure their staff is prepared to answer questions, help members feel comfortable with the changes and explain the benefits – such as faster service and enhanced security – that will result.
With the potential to transform a wide range of financial experiences, biometric technologies can help make the financial services experience more convenient and secure for consumers and financial institutions – and ultimately deliver a better member experience.
Chris Van Der Stad is senior vice president and chief technology officer for Fiserv's Open Solutions. He can be reached at 800-872-7882 or [email protected].
Scott Hess is vice president, user experience and innovations, digital channels for Fiserv. He can be reached at 800-872-7882 or [email protected].
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