Biometric Authentication – Future of Mobile Banking

In today’s era internet has a great role to play. From the activities of daily life to business requirements, things are now dependent on internet. In simple words we are living in a digital world and are witnessing a great impact of digital services in all spheres of businesses and lives. Banking services are also not an exception to this. The banking services are observing rapid digitalization to ensure better identification of customers to prevent fraud and theft. That’s why Biometric technology is also becoming an integral part of online banking.

That’s why now when businesses look to Hire iOS App Developer or Android app developer to build an app they ask them to incorporate Biometric authentication into their mobile app. Biometrics is an automated method used for customer recognition through their biological attributes and traits like voice recognition, fingerprints, iris, facial recognition and finger vein pattern. These features are unique for every individual and forgoing them is impossible. That’s why digital banking is inclining towards its implementation. Banks across the world have already started implementing biometric system for the identification of their employees as well as customers to offer them enhanced security as compared to the one offered by traditional PINs and passwords.

Biometrics was earlier shown only in science fiction movies but as security is the top priorities for most of the organizations in 2019 hence they are being pressured to implement stronger security options and biometric authentication seems to be the answer. Many experts predict that PIN number will be obsolete in next few years as biometric authentication is quickly advancing and many banks are adopting this new form of digital security. Apple and Samsung’s finger recognition capabilities have allowed financial institutions to adopt Touch ID authentication for mobile, which allows users to sign-in with a touch of a finger.

Hence any good Mobile App Creator is now working to provide biometric authentication in their mobile apps. Reports say that in the next 6 years, the biometric market size will reach $25 Billion and by 2023, there will be about 2.6 billion biometric payment users. Although biometric authentication has its own benefits and convenience but this technology is also at risk for becoming a target. The number and scope of data breaches in last year i.e. 2018 was eye opening. Let’s now discuss some major market trends which we will see in coming years which will impact the adoption of biometric technology in the banking industry from both customer experience and security perspectives.

• PINS and Passwords are Not Secure Anymore:
  So many of the banks have been trying hard that their customer data remains safe and secure with passwords and PINs but customers are still at risk of fraud. Large companies such as Microsoft and Intel are building biometric authentication systems into their future products as they have realized their needs. Working of these companies on cutting edge biometric technologies are paving the way for banks to enter the biometric space for mobile banking.
• More Devices Are Being Built with Inbuilt Biometric Capabilities: 
  Good App Creator now wants to provide biometric authentication provided the device has this feature. As per a study, about 30% of mobile devices are right now using biometric authentication as a security system with more and more mobile manufacturing companies are adopted this technology into their mobile phones. This is creating huge opportunities for banking institutions to start providing mobile banking services with Biometric authentication.
• Different Biometric Modes for Security: 
  There are many modes of biometric authentication which institutions can adopt like fingerprint, retina, voice, heartbeat, facial recognition etc. HSBC bank recently launched fingerprint and Touch ID sign-in to its mobile banking app with many other banking following this. This removes the need of remembering passwords. This new technology is providing enhanced UX and greater security to users.
• Biometric Technology Coming to Other Platforms: 
  Apple Pay is already using fingerprinting with Apple Touch ID and facial recognition to verify a user’s identity for mobile POS payments on their smartphones for more secure transactions.  Earlier, Touch ID was only limited to App Store, iTunes purchase and unlocking the device but this new security method is also being adopted by banks who are now integrating Touch ID for users to access their mobile banking services. Some of the banks like American Express, ING Direct and HSBC have already started providing mobile banking services using Touch ID.
• Multi-Factor for Higher Security: 
  Right now banks use PINs and Passwords for security option but they are an easy target for frauds as we have seen recently in many cases. Therefore, many organizations are now considering multi-factor authentication by combining a fingerprint with either voice, retina or facial recognition which will make it almost impossible for a hacker to infiltrate into customer’s account.

Why this is the Right Time to Adopt Biometric Technology? 
Banking and financial institutions were already looking at ways to provide high level of security to customers and when Apple launched its Touch ID and Samsung introduced its fingerprint scanner, using the biological features as a form of authentication to access user data, they were more happier than anybody else. By using biometric technology, these financial institutions have the opportunity to optimize their user experience as users won’t have to remember passwords and user names which will definitely simplify their lives. Best thing about biometric authentication is that it can’t be hacked, shared or forgotten. That’s why customers are welcoming this step of introducing biometric authentication by banks in place of traditional authentication methods. This technology is especially best for the financial sector as it satisfies bank’s constant requirement to protect their customer’s information. Biometric technology has already been a success in the government and business sectors and now it’s time for the financial and banking sector to adopt this technology now as it will definitely lower the rates of frauds and thefts happening through the mobile banking applications.