New Deloitte Report Indicates Biometrics in Banking Could Help Secure Mobile Transactions

biometrics in banking is on the rise

The use of biometrics in banking is increasing as more consumers understand its potential and become more familiar with the technology.

The Deloitte Center for Financial Services released a report that indicates eroding consumer confidence in the security of mobile financial service applications has forced the industry to take a closer look at incorporating technologies such as biometrics to help alleviate fears and insecurities. The report seems right on cue following our post last week about the need for the financial services and banking industries to more closely assess the use of biometrics for customer and employee ID and to better secure mobile devices while engaging in transactions.

A link to the full report can be found here and it presents some very interesting statistical data culled from a recent survey Deloitte launched to ask consumers about their comfort level with using mobile banking apps. A few of the highlights:

  • Many (banking customers) are hesitant to use mobile services due to concerns over security, privacy, and ease of use.
  • Mobile is increasingly becoming the primary method of interaction with their financial services providers.
  • Should the at-home mobile experience that financial services companies offer be different from out-of-home experiences, where there is perhaps greater concern about security and privacy? 
  • (Consumers) placed a much higher value on the ability to interact using mobile devices with their banks than with other financial providers.
  • For many consumers, when it comes to conducting financial services over mobile devices, the advantages and conveniences offered by smartphones and tablets are being trumped by more negative considerations about the devices themselves and data security.
  • 61% of those who do not regularly use mobile devices for financial services cited security issues as the prime reason.
  • 3 in 10 respondents said that security issues had prompted them to severely restrict the use of mobile devices for financial services.
  • 72% would appreciate the use of biometric identification in banking (such as fingerprints or eye scans) to enable a device for financial services transactions.
  • Biometrics is another mobile device capability that financial services companies could leverage to make customer interactions easier and more secure.
  • Nearly 2/3 of smartphone users said they would find it valuable to use biometric identification (fingerprint, voice scan, or iris scan) on mobile devices for ATM transactions and payments.

It is clear that the proliferation of biometric identification capabilities on smart devices has brought the technology more into the mainstream helping consumers to develop a higher comfort level to use it and more importantly, understanding why and how biometrics in banking is a natural evolution of securing online transactions. However, there is still trust to be built in using biometrics in banking on mobile devices to secure transactions. The report states:

“However, the comfort level with biometric security and encryption decreases as the amount of the transaction increases. For instance, the proportion of consumers who are comfortable with this technology drops from 26 percent for a transaction size of $1,000 to only 11 percent for a transaction worth $10,000. This finding illustrates that biometric solutions may be more successful for smaller transactions. As consumers gain experience with biometrics, they might then be more willing to use them for larger payments.”

What’s clear is that not only is biometrics in banking an opportunity for the industry to leverage existing smart device capabilities to boost security, but the use of biometrics is also an opportunity to better engage consumers and build trust – two critical pillars of quality service, customer retention, and spreading positive word of mouth.

Thanks to the staff at the Deloitte Center for Financial Services for their research and reporting. Extremely interesting insight into the rising use of biometrics in banking and an opportunity to truly understand consumer sentiment when it comes to their perceptions of whether mobile banking is appropriate for their use.

Do you feel that biometrics in banking has a place to help increase security and build trust with consumers?

 

 

New Video Highlights Need for Tighter Border Control Security

Protect your nation's borders with SecuredPass - the biometric identification management border control solution from M2SYS Technology

The need to protect a nation’s borders requires investments in biometric identification management border control solutions.

Implementing tighter security systems to protect a nation’s borders has increasingly found itself in the cross hairs of many countries around the world. Marked increases in cross-border terrorist and criminal activity has prompted many governments to assess the strengths and weaknesses of their existing internal control systems and forced some to seek more sophisticated, modern border control systems that leverage the use of biometric identification.

Protecting a nation’s borders from the illegal movement of weapons, drugs, contraband, and people, while promoting lawful entry and exit, is essential to national security, economic prosperity, and national sovereignty. The dynamics of the world we live in today requires the deployment of sophisticated technology to match pace with the amount of illegal activity that threatens the security and freedom of countries around the world. The ability to adopt and implement a salient border control system that can quickly and accurately confirm traveler identity to confirm someone is who they claim to be is an essential element of national security.

M2SYS designed and built our SecuredPass™ border control biometric identificaton management solution to offer user-friendly dashboard navigation and provide a multi-tasking environment to maximize employee productivity. Border management agencies can use the M2SYS SecuredPASS™ identification to quickly and accurately confirm traveler identity to verify that someone is who they claim to be. SecuredPass features an intuitive, user-friendly dashboard navigation that can be customized to meet the unique needs of any deployment including country specific standards and provides end users the ability to easily multitask. Plus, it offers high powered searching capability in a one to many environment, and unlimited possibilities for system expansion.

Take a look at the video below for more details.

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M2SYS Announces Support for Integrated Biometrics’ “Sherlock LES Fingerprint Sensor

The M2-RapdiCheck mobile biometric identification device uses the Sherlock fingerprint sensor

Mobile biometric devices, such as our RapidCheck™10-29 multimodal biometric device, require flexible, modern sensor technology to meet market demands.

Today we announced support in our Hybrid Biometric Platform™ multi-modal biometrics system for the innovative “Sherlock” Light Emitting Sensor (LES) fingerprint sensor, designed and produced by Integrated Biometrics. Why is this important?

The marked increase in mobile biometric identification management deployments demands innovative hardware that is capable of capturing moist or dry fingerprints in any type of weather conditions, even extreme in nature. The evolution of biometric identification deployments from a brick and mortar setting to mobile deployments in the field that allow system administrators to bring equipment directly to the end user for identification necessitates flexible, secure, lightweight, and durable hardware requiring low power requirements and fast, accurate results. The LES fingerprint sensors are perfectly geared towards mobile and pocket-sized smart devices which are quickly becoming mainstream for modern deployments.

One of the core tenets at M2SYS is to invest in the prosperity and success of our partners and end users by offering the most innovative, efficient, and results-oriented biometric identification solutions easily adaptable to any environment or conditions. We understand that success is determined by customizing our solutions to meet the unique needs of our end users and adapting to their environment. The steady rise in mobile biometric deployments is largely based on the ability to quickly and accurately capture fingerprints regardless of the conditions or physical environment. Support of the LES “Sherlock” sensor fits into our commitment to continue offering the most innovative, accurate, and user-friendly biometric identification tools on the market.

In what ways do you see the “Sherlock” fingerprint sensor having an immediate impact on the biometric identification market?

Privacy: Will Mobile Apps with Biometric IDs Help Advance Biometrics Acceptance?

will biometric mobile authentication take a step forward?

Will the use of biometrics for mobile device authentication help advance acceptance of the technology?

The following guest post is by Nicole Williams, professional blogger.

Biometrics seemed like such a futuristic term just a few years ago, but now it’s here and according to CNET, it’s predicted to be a ‘common’ form of security by 2015. However, many companies are concerned about whether biometrics will offer a viable security solution and consumers are worried about whether biometrics will violate their privacy by using their stored data. Many of these concerns are caused by a lack of understanding surrounding biometric security systems.

Many people are unaware that fingerprint scanners and voice recognition apps are forms of biometric security. Millions of mobile device users download these apps as a first line of defense to secure their text messages, phonebook contacts and images. Since there are many ways for data thieves to get past patterns, passwords or number codes, they can only secure a device to a certain degree. This is bad news for businesses that subscribe to the BYOD trend. In these businesses, employees are encouraged to work from their own devices both on and off-premise. These devices hold valuable data about clients and the business itself, so unauthorized access could spell danger.

This year’s widely publicized data attack on the retail giant Target, has raised some concerns about how data is stored and accessed. Security experts believe that biometrics could have provided an iron wall of protection around this data, preventing the attack from occurring in the first place. However, with so many businesses lacking information about biometric security, this unfortunate incident was followed by many others. Biometrics work by providing an added level of security that only the user can get past. Since many people are already using biometric apps to secure mobile devices, it is predicted to become the most popular form of device and data security for both businesses and private use.

How Biometrics Work

Every person has a distinct pattern on their fingertips, in their eyes and in their DNA. Biometric scanners take images of these patterns and compare them to future images. This is very similar to the blink method that astronomers use to track changes in the night sky. Astronomers take pictures of the night sky then they take pictures of the same section of the sky again. They use a computer program to compare the images and the slightest change is noted immediately. With biometrics, the patterns must match for access or access is denied immediately. There are pros and cons to using biometrics (i.e. cost vs ROI and ease of use vs benefit), but the pros greatly outweigh the cons.

All in all, biometrics are becoming a more acceptable way of securing data thanks to the introduction of biometrics on mobile devices. The average user can see how biometrics work and the benefits of using them in a non-threatening situation. This increases the likelihood of them accepting biometrics for other uses such as ATM access, business or home premise access and security alarm access.

The key here is to continue to educate the user on the benefits of biometrics and to find easy to use solutions that require a relatively short learning curve. As more mobile app and computer manufacturers use biometrics as a first point of access to data, consumers and businesses will grow more comfortable with using them as well.

Nicole Williams is a guest blogger for M2SYS Technology as she writes about the relationship between biometrics for mobile ID and increasing public acceptance of biometricsAbout the author: Nicole Williams is a keen technology enthusiast and enjoys blogging about topics like technology and productivity. She is a professional blogger who currently writes for Micro Com Systems.

 

 

 

Additional References:

http://www.banktech.com/payments-cards/biometrics-and-mobile-payments-security/240162549

http://researcher.ibm.com/researcher/files/us-kapil/ACSAC12.pdf

#biometricchat Transcript for 04/12 Tweet Chat on #biometrics and the #mobile Market

Transcript of 04/12/12 #biometricchat with Raul Jareno from Mobbeel discussing biometrics and the mobile market

April #biometricchat transcript

Yesterday we had an outstanding #biometricchat on the topic of biometrics and the mobile market. Our guest was Raúl Jareño from Mobbeel, who provides biometric security solutions (iris, voice, face, hand geometry, signature recognition… and more to come) for Android and iOS devices. We covered many different topics on the present and future of biometric technology on mobile devices and throughout the hour, covering the questions:

  1. What do you feel will be the most popular uses of mobile biometrics will be over the next 5 years?
  2. What modalities do you feel are the most practical for mobile biometrics?
  3. What impact will mobile biometrics have on forecasted growth rates for the industry?
  4. Why should biometric device manufacturers or biometric software providers should be focused on mobile biometrics?
  5. What negative consequences can mobile biometrics technology patents and intellectual property squabbles have on the market?
Listed below is a transcript of the chat if you would like to review the answers, comments, additional questions and links that were provided. We would like to again thank Raul and the good people at Mobbeel for helping us with this chat and for bringing their expertise and insight to the discussion. Thanks also to the teams at: Securlinx, Goode Intelligence, Applied Identity and to Heidi Shey for sitting in on the discussion. We will be releasing details on May’s #biometricchat, scheduled for 05/10/12 at 11 a.m. EST,  in the next couple of weeks. Hope that you can join us! (Have a suggestion on a topic for an upcoming #biometricchat? Please leave it in the comments below).