Can Fingerprint Biometrics Build a Strong Customer Engagement post PSD2?
Welcome to the 1st blog post in our series on PSD2. In this first post, Anthony Eaton, Chief Technology Officer at IDEX Biometrics discusses how fingerprint biometrics can build strong customer engagement post PSD2.
The second Payment Services Directive (PSD2) is expected to change the face of banking in many positive ways for consumers. With a free exchange of information between banks and service providers, opening up payment options to consumers should streamline current payment processes. The implementation of PSD2 will create opportunities for new business lines and provide consumers with the opportunity to engage in and shop for services that will make the best use of their hard-earned money.
What does this mean for the future of biometric authentication technology?
PSD2 provides great potential opportunities for the future of biometrics. With stricter security requirements in force, biometric authentication is one of the ways that businesses and consumers can ensure their data is protected. With security concerns at the forefront of many discussions relating to the sharing of financial information, biometric technology is poised to help overcome those security hurdles and set to become a standard means of authentication from both a consumer and retailer standpoint.
One of the key components of PSD2 is the requirement to implement Strong Customer Authentication. This means utilizing more than the standard security measures involving usernames, pin and password technology. With the implementation of PSD2, two factors of authentication will be necessary for all interactions relating to financial transactions. Biometric authentication is one of the options that can be used to provide the so-called “inherence” factor, as it is an easy security measure to incorporate into the consumer experience.
Facilitating customer engagement
Creating a seamless customer experience is important. Biometric authentication technology should make the consumer’s life easier, not more difficult. Fingerprint biometrics have a great opportunity in creating a seamless experience, given the ease of simply touching the sensor that reads the biometric information and securely verifies it. The ease of use and unobtrusive nature of the technology makes incorporating it into already familiar consumer experiences seamless and painless. With a focus on increased security, biometrics provide an easy and instructionless form of authentication that means consumers will see no interruption in their services or workflow.
Where fingerprint biometrics can be integrated
The beauty of this highly integrated sensor technology is that it has the ability to be integrated just about anywhere. From credit cards to IoT devices, fingerprint technology is here to stay and is only going to become more pervasive over time.
The future of biometrics appears to be secure, even after PSD2 takes effect. With the need for additional security measures to freely share information and streamline the consumer experience, biometrics is a natural go-to for the financial services sector. With biometric authentication technology providing a variety of types of services that companies can implement and the ease of use on the consumer side, the addition of biometrics is an easy sell for many types of businesses. Ultimately biometrics will enable a non-invasive way to keep the customer’s data safe while keeping the customer engaged throughout the process of their financial transactions.