How Biometric Identification can Streamline Financial Operations
In the 2nd blog post in our series on Biometrics for Financial Inclusion, Stan Swearingen, Chief Executive Officer at IDEX Biometrics explains how biometric identification can streamline financial operations. The previous post in our series on “Biometrics for Financial Inclusion” looked at the “importance of biometrics for financial inclusion“.
After breaking barriers in multiple verticals such as corporate offices, military, healthcare, mobility platforms, and consumer electronics, biometric technology is rapidly gaining momentum in banking and financial services due to more than one reason. Biometric sensor technology providers are collaborating with market-leading financial service providers to strengthen consumer security and ease-of-access to banking services. This is an effective technique to reach the unbanked, especially in developing nations providing an opportunity for them to accelerate their economies.
Notably, a large percentage of the population in Africa, Middle-east, and Asia are still unable to access seamless banking facilities since they are unable to fulfill the identification prerequisites imposed by many of the financial institutions. Leaders in the finance and government industry have addressed the severity of the situation and have recognized biometric sensor technology as a cost-efficient and reliable technique to reach the unbanked.
Fingerprint identification – Enhanced customer experience
Biometric-enabled payment cards have become available recently and after market research and a series of pilots, they are set to rapidly expand with in the financial services sector. Customer engagement is encouragingly high since the enrollment process is very simple, fast, and secure. The user needs to simply place their finger on the smart card and the sensor identifies them as the unique customer. This means, every time a customer wants to make transactions or shop, they don’t need to use a four-digit PIN which is highly susceptible to hacking. A similar process is applicable for the professionals who work with banks or financial services organizations for logging into their highly confidential systems ensuring complete security of their assets. This mitigates the possibility of infringement or any fraudulent activities which is still one of biggest challenges faced by the banks across the world.
Biometrics within the finance industry – Takeaways
- Pilots have resulted in high customer engagement, especially in Asia, Africa, and Europe. This will result in greater enrollments and make the unbanked bankable.
- Financial operations can be streamlined with a cost-effective implementation process.
- Financial transactions are faster and more secure
- Making a payment using biometrics supports people with communication and literacy challenges.
The previous post in our series on “Biometrics for Financial Inclusion” looked at the “importance of biometrics for financial inclusion“.