Can Fingerprint Biometrics Be the Key to Weathering CU Security Threats?

Fingerprint biometric solutions, like many other technology categories, faced stiff headwinds during the past few years of geopolitical, macroeconomic, supply chain and public health upheavals. But they still sustained their longstanding popularity. No other modality offers the same combination of speed, ease of use and accuracy, plus cost-effectiveness – especially in regions where low implementation costs are particularly important.

It doesn’t hurt that more people have now likely used fingerprint technology than any other biometric factor, primarily to unlock what may be the most widely used consumer device on the planet. This is one of the many reasons why credit unions and other institutions in the banking, financial services and insurance (BFSI) sector believe this technology will help them weather a growing range of evolving and increasing dangerous security threats.

Biometric Bona Fides

ABI Research reported in its publication, Biometrics Market: 2023 Annual Update, that the “largest slice” of the BFSI market currently uses fingerprint recognition and the combination of fingerprint and facial recognition will account for up to 90% of the total biometric device shipments in this segment moving forward.

Numerous attributes set fingerprint biometric solutions apart in BFSI applications, and these same attributes are also important in retail, government and law enforcement sectors that drive growth in North America. One of the most important attributes is a fingerprint’s infallibility as a personal identifier (even identical twins have different fingerprints). Additionally, fingerprint solutions can be fortified with presentation attack detection (PAD) to prevent “fake fingerprint” spoofing attempts plus 3D fingerprint scanning for greater accuracy.

Among their many benefits in the BFSI sector, fingerprint solutions combine scalability and accuracy with the right user experience for applications where tens of millions of customers must be matched through their biometric to the correct user account. Fingerprint recognition simplifies this process. A fingerprint is always at hand and requires no password memorization. It also is non-transferable and cannot be lost, stolen or shared, and it establishes proof of presence and an audit trail by confirming who did what, and when.

Where Fingerprint Recognition Shines

Many financial institutions use biometrics for customer onboarding, ongoing customer authentication and verification, secure ATM services and employee authentication.

During onboarding, fingerprint recognition strengthens security for Know Your Customer (KYC) checks and makes it harder for unauthorized people to open fraudulent accounts or impersonate account holders. Customers enroll fingerprints along with their official ID document at account opening, whether online or at the bank branch. This friction-free process increases conversion rates while cultivating financial inclusion and creating a better overall customer banking experience.

Following the enrollment process, customers can also then use their finger for ongoing authentication. Each scan is matched to the biometric data they provided during onboarding so they can easily access and manage their accounts while adhering to both KYC and Anti-Money Laundering (AML) requirements.

A similar approach can be used to grant customers access to secure areas. One of the top three banks in Singapore used this approach to streamline previously manual processes for customers who need to access their safe deposit boxes in the VIP lounge.

At the ATM, fingerprint biometrics replaces traditional PINs and cards with simple, frictionless biometric sign-ons. This approach also delivers the unique ability to confirm who is actually transacting and determine whether it is a legitimate customer or a fraudster, while simultaneously creating a more convenient transacting experience.

The numbers tell the story. In South America, as an example, the volume of ATMs that leverage fingerprint biometric authentication began to challenge those without biometrics as early as 2016. Brazil, alone, now has approximately 190,000 ATM terminals, 90,000 of which utilize fingerprint biometric technology. MSI technology also figures prominently in Brazil for ATM applications – HID’s MSI-based fingerprint readers account for at least 60,000 of the total ATM usage number in Brazil and are used to biometrically secure more than one billion ATM transactions there each year.

Fingerprint biometrics also helps solve the problem of insider corruption that is at the heart of so many fraud schemes, according to PwC Global in its 2022 global economic crime and fraud survey. Integrating fingerprint authentication into a bank’s single sign-on (SSO) or multi-factor authentication (MFA) strategy creates a robust, secure and convenient employee access process.

Not All Solutions Are Created Equal

A key deployment prerequisite for any solution is that it ensures people are not only presenting an authentic fingerprint but also can be accurately and reliably authenticated even if fingers are dry, damaged, wet, oily, dirty or wrinkled.

To meet these requirements, many BFSI institutions specify solutions featuring multispectral imaging (MSI) technology, which collects both surface and subsurface fingerprint data for a more comprehensive biometric image. Multiple colors of light are projected into the finger from different angles to capture both the “external print” on the skin’s surface and the “internal print” or subsurface capillary information. This significantly improves usability and confirms liveness of the person.

Organizations should also specify solutions that provide endpoint security and encryption to protect data passed between the sensor and ATM or other equipment into which it is embedded. If not, there may be user authentication errors that damage customer satisfaction, company/brand reputation and customer retention, among other issues. For even stronger security and reliability, fingerprint recognition can also be combined with other biometric identifiers, such as facial recognition.

Fingerprint recognition solutions offer the opportunity to improve security while reducing friction points both inside and outside the institution. Realizing these benefits require a combination of proper planning and implementation plus a careful selection of technologies that improve authentication accuracy and reliability while defending against fraud.

Vito Fabbrizio is Managing Director, Biometrics, Extended Access Technologies for identity and access management solutions provider HID Global, with U.S. headquarters in Austin, Texas.