“Biometric security is a revolutionary technology that can enable safe and secure banking in the future while eliminating ID theft, data leaks, cloning, and resulting financial losses.”
Biometric security is a revolutionary technology. It is changing the shape of various sectors like bank security, building access control, retail store security, etc. A biometrics security system uses physical attributes like facial recognition, fingerprint scans, voice recognition, gait recognition, and retinal recognition to authenticate a user's identity. Biometrics will identify authenticity in real-time using a camera installed on some infrastructure. Biometric systems act as identity verification tools for the bank in securing online payment systems, accounts of the users, ATMs, etc. This technology can help both the user and the bank because the banking sector still has some loopholes like Transactional errors, fraud/identification thefts, and user experience are some loopholes that need to be improved. Technology has taken security to the next level. You may have used such technologies on your smartphones.
Evolution of Biometric Technology in the Banking Sector
The use of biometric technology in banking has come a long way. From standing in a long queue at bank branches to initiating online transactions on smartphones, this advancement benefits the overall banking process.
However, most of the customers are still not showing their trust in Internet banking due to security issues because they are unaware of the technology, and some consider it a risky approach. After implementing the biometric system in banking, customers feel more secure knowing that their account is inaccessible to someone else.
Biometric systems are safer than traditional password security systems, and the use of biometric systems is expected to witness an increase in the future. Many customers use biometric technology as a safer way to authenticate card payments.
How Biometric Security is Transforming the Future of Banking?
Biometrics offers a highly secure mechanism to access bank accounts by quick user identification and authentication. Iris scan system is enabling aid money transfers to legitimate beneficiaries across various nations including African countries.
Some of the aspects of Biometric security are as followings:
1. Smart Banking
2. Smooth user experience
3. Improving the Security Features
4. Regular Audit Trail
5. Improvement of customer care services
Smart banking
Smart banking helps to improve the traditional banking system by enabling biometric access control, which provides a better user authentication process and improves the overall user experience. For example, Smart ATMs have cameras and sensors that can detect any activity in real-time. It performs facial recognition before initiating the transaction to verify the authenticity of a person. If the data of that person doesn't match any stored data, it informs the bank and security team for further proceedings.
Smooth user experience
Biometric systems can improve the security of user account details. It can improve the process of transactions by reducing the time-consuming steps of transferring money. You can complete the transaction with a few clicks or just by clearing the authentication process through your smartphone. Techniques like facial recognition and fingerprint recognition will save users time. Biometrics offers advanced security to users and also enables transparency between users and banks.
Improving security features
These banking sector authorities must focus on improving security measures on a regular basis. The advantage of biometric authentication is that it protects the identity of a user from possible threats. The banking sector needs to follow user security protocols like GDPR (General Data Protection Regulation) and IT acts. which is a privacy protection article from the European Union published on April 27, 2016.
Regular audit trails
The banks can track customer and employee activity in the system with the help of biometric technologies. They can regularly maintain records of login information and transactional activities to protect the bank and customers from data leaks.
Improvement of customer services
Getting customer support from the bank is a tiring and time-consuming process. Sometimes, it will take days to resolve a query, and the verification process is insecure. They can set up a biometric verification tool in the call process. Then, the biometric system performs voice recognition identification and asks a security question. Users must answer these questions as part of the security verification process. Users will be connected to customer support for further processing.
As we continue to evolve towards the digital world, we need a fast and secure way to verify our identity. Biometric technology offers a fast solution for the authentication process in the banking sector and it is more secure than other technologies such as RFID and NFC being used in banking. One of the most concerning things in biometric systems is the continuous improvement in security updates of biometric systems because they are not yet perfect to use or fully secured, and implementing such a technology requires significant technical expertise. The banking sector must focus on advancing the level of privacy protection.
Frequently Asked Questions
Q1. What is Biometrics in Digital Banking?
This technology uses physical and behavioral traits, such as fingerprint or facial recognition techniques, to identify the authenticity of a person and then permit them to access their banking details. It provides an additional security layer for the privacy protection of users. The biometric system helps in identifying fraud and improving the customer experience.
Q2. How secure is biometric identification banking?
The biometric identification process is an improved version of security compared with the traditional username-password approach in the banking system. Despite this enhanced privacy protection, biometrics are still vulnerable to data theft and manipulation.
Q3. Which is the most secure Biometric System?
The vein recognition technique is one of the most secure biometric systems compared with fingerprint scanning and facial recognition. Vein recognition is a biometric system that uses the pattern of veins in someone's hand to identify them.
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