With the pace of rapid innovation in today’s biometric technology field, new uses are appearing to make the process of authentication more convenient and secure. These innovative and useful processes of human identification are increasing in frequency with every year. As these uses are increasing, they are also creating some trends and reshaping the way we identify humans. Continue reading →
The following guest post was submitted by Sarah Smith on behalf of The Real Estate Academy of Australia. Sarah is a small business owner, and is currently learning about marketing and using the internet. Aside from working on her own business, she likes to use social media, and read travel books.
The global world of retail payments is rapidly advancing technologically, giving rise to many future possibilities to authenticate transactions and more efficiently allowing the banking industry to securely attract and connect with customers. It is now possible for an individual to make payments on the move via mobile devices, enjoy access to multiple payment methods and currency options, and feel secure in the knowledge that their sensitive data is protected due to new sophisticated technologies like cloud and mobile biometrics, which were developed to combat fraudulent activity.
The following guest post was submitted by The Carter Capner Group, a law firm serving Queensland and the Australian city of Brisbane.
Many people such as personal injury and compensation lawyers Carter Capner have confidential information on their smartphones. Thanks to advances in technology, people no longer need to rely on a password to protect their sensitive data. It is now possible to lock a cell phone with the owner’s fingerprint. This eliminates the possibility of a hacker figuring out the password to access the contents of the phone. It is this exact fingerprint technology that was the subject of a case in Virginia criminal court last November. In this case, a key ruling was made that will now make it easier for law enforcement officials to gather evidence that is contained on a smartphone. The judge ruled that criminal defendants can now be legally compelled to open their phone for police if it has been locked using a fingerprint recognition program. One would imagine this ruling will also carry over and apply to other devices such as tablets, laptops and PCs.
Continue reading →
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?