by Chris Burt, Activist Post:
Banking is being reshaped by several forces, including digitization and online service delivery, and biometrics are vying for a major role in different types of interactions for financial services. Industry publication The Banker notes that synthetic identity fraud is expected by the Deloitte Center for Financial Services to generate $23 billion in fraud losses by 2030, and stakeholders see biometrics as the tool they need to fight back.
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Executives from UBS and iProov say biometrics can provide a cheaper, easier way to perform banking transactions, and also back reusable digital IDs.
Consumers appear to be ready, with a survey from PYMNTS Intelligence and AWS showing just over half of those who made an online purchase in a specified period using biometric authentication.
“Tracking the Digital Payments Takeover: Biometric Authentication in the Age of Mobile” also indicates that 49 percent of consumers favor fingerprint recognition among biometric authentication methods, ahead of 28 percent for facial recognition. Most of those who use face biometrics do so frequently, however, with 60 percent saying they use it at least weekly.
Not surprising, but encouraging for future uptake of biometrics, younger respondents use the technology much more often than seniors and baby boomers. Slightly over a third of survey respondents do not want to use biometrics at all.
UBS is pushing regulators to allow multiple biometrics to be used for authentication, in the absence of a knowledge or possession factor. This could be more secure and frictionless, and UBS Executive Director Pascal Tavernier says “that’s the future.”
Remote payments
In remote payments, the future is now.
Fourthline and Buy Now Pay Later payment processor Scalapay have formed a strategic partnership to help businesses comply with know you customer (KYC) and anti-money laundering (AML) regulations.
Fourthline is contributing its face biometrics, optical character recognition and other proprietary technologies to allow Scalapay customer to adapt to changing regulatory conditions, according to the announcement.
iDenfy has been selected by Germany-based online marketplace Quoka to handle identity verification with selfie biometrics, protecting buyers and sellers against fraud.
Lithuanian fintech NomadRem has also chosen iDenfy to protect its online money transfers, bill payments and other transactions from fraud.
Online onboarding
Stopping fraudsters before they can open an account is the most established use case for biometrics in financial services.
Socure is providing its biometric identity verification and fraud prevention platform to credit union tech provider eCU Technology for secure, real-time customer onboarding.
