Fintech entrepreneur Michael Zetser, a renowned name in the world of fintech says that several decades in the past, biometric technology appeared distant, like a futuristic concept that would need considerable time before becoming a part of our daily existence. Nevertheless, the strides made in crafting and deploying these systems for identifying individual traits have transformed this imagination into tangible reality, arriving sooner than anticipated.
In today’s world, financial technology firms stand at the forefront of championing biometric technology. Their motivation stems from its potential to enhance both customer satisfaction and data security. In this post, we delve into some crucial aspects that shed light on this technological phenomenon and how it could potentially revolutionize the fintech world.
Understanding Biometric Technology
Biometric technology is the precise method of recognizing individuals based on their unique physical or behavioral characteristics. Put simply, it involves identifying distinctive patterns like facial features, voice, heart rate or fingerprints and using them to verify the identity of users across various services. These one-of-a-kind patterns are impossible to replicate, making them an excellent choice for safeguarding sensitive operations, such as remote financial transactions.
Fintech companies are harnessing the power of biometric technology to address challenges linked to online anonymity and social media, all while delivering intuitive and practical solutions for both their customers and employees. With the aid of artificial intelligence and the development of sophisticated recognition algorithms, advancements in individual identification are not only preventing and mitigating crimes like identity theft and money laundering, but they’re also enabling fintech and financial sector businesses in the digital realm to fulfill the rigorous security and Know Your Customer requirements demanded by the entire financial industry.
How the Fintech World Benefits from Biometric Authentication
The fintech industry has experienced tremendous growth in recent decades, offering innovative products and services with a strong emphasis on remote banking solutions, often centered on app-based customer interactions.
Michael Zetser, an expert in everything fintech, thinks that one invaluable tool is at the heart of neobanking and digital banking and that is biometric technology software. This software is essential for remotely verifying the identities of customers. It’s worth noting that biometric technology isn’t confined solely to the realms of the internet and mobile apps. Instead, it extends its reach to bank branches, where it assists sales agents, and even to ATMs.
Authentication
It serves as a second layer of identification for accessing web platforms, mobile applications, and even physical branches, enhancing security across the fintech landscape.
Contracting
Biometric technology plays a pivotal role in contract signing by first verifying the individual’s identity, ensuring a secure and authenticated transaction.
Onboarding
This involves the initial verification of a customer’s identity to complete their registration by capturing and recording their facial features.
Biometric Technology Uses that Could Benefit the Fintech World
A big name in the fintech world, Michael Zetser thinks that biometric authentication technologies have several uses in the world of fintech. Some of them are as follows:
Facial Recognition
Facial recognition technology is becoming increasingly prevalent in the realm of mobile applications. Already, many mobile phones employ biometric authentication methods to unlock the device, access apps, or facilitate payments. In essence, facial recognition is a feature that’s already integrated into mobile phones for various functions.
While fingerprint recognition is another option, innovative solutions like facial biometrics take authentication a step further by combining it with a “proof of life” element. This added layer of security enhances the authorization process when accessing an application. One of the significant advantages of face-based identification technologies is their versatility. They can be employed on any device equipped with a camera, making them a convenient and widely applicable method for ensuring security and access control.
Convenient Retail Payments
The advantages of biometric technology in retail payment systems are undeniably noteworthy. With the growing prevalence of mobile phones as a rapid payment method, leveraging voice, facial recognition, or fingerprint patterns serves as an effective means to mitigate the risks associated with mobile payment usage, including unintended transactions.
Public Facility Access
The application of biometric technology extends beyond private sectors into public facilities, including bank branches, with the aim of enhancing access control and optimizing service efficiency, particularly in managing queues and reducing wait times.
Moreover, biometric technology has already found its footing in airport operations, exemplified by its implementation in various airports. It expedites various procedures such as check-in, customs clearance, while bolstering passenger and facility security.
Notably, facial recognition systems are making inroads in sporting events and shows, serving a dual purpose of facilitating venue access and bolstering security protocols in case of potential incidents. The use of biometric technology software for the identification and restriction of access to individuals like stalkers or those under restraining orders during concerts, matches and similar events has been successfully trialed and implemented. It shows that biometric authentication indeed works and is a major reason why fintech expert Michael Zetser thinks that it will play a prominent part in fintech’s future.