A recent survey conducted by MasterCard and the University of Oxford’s Department of Computer Science found that nine out of ten consumers want biometric authentication for access to their financial services. A security method that employs fingerprint, voice recognition, or facial/iris scans to verify the user, biometric authentication currently manages access to buildings, computing devices, and other digital and physical resource points.
The joint report, “Mobile Biometrics in Financial Services: A Five Factor Framework,” examines consumer sentiment regarding the intersection of biometric technology and consumer finances. According to the research, “the demand for mobile biometric technologies is undeniable,” as the survey results indicated 93 percent of consumers prefer biometrics to passwords or PINs. Passwords pose an inherent problem as their research discovered 51 percent of consumers use repeat passwords across many websites; 33 percent of online transactions are abandoned due to forgotten passwords; 25 percent of consumers reset a password each day; and after two weeks 21 percent of consumers forget their password. Banks also see the added benefit of biometric authentication as 92 percent are receptive to adopting biometric verification. President of Global Enterprise Risk & Security at Mastercard, Ajay Bhalla wrote a blog detailing the initiative,
Effective mobile biometrics melt into the broader experience of consumer-centric financial services, giving people the power to access their financial information or make a payment instantly. They’re driving the trend toward a password-free future where digital identity is all about who we are, not what we remember.”
According to the research, an industry knowledge gap is to blame for the barrier keeping biometric technology from becoming a reality for consumers and banks. The MasterCard and Oxford report found that only 36 percent of the executives involved in implementing mobile biometrics feel adequate at the undertaking. The report emphasized five factors for closing that disconnect: performnace, usability, interoperability, security, and privacy.
The touch-and-go simplicity of biometric technology is attractive to users. Bhalla asserts, “a kid to a Millennial to a grandmother should be able to use it with absolute ease. And the good news with biometrics is on a lot of our devices it is already out — it is about now tying in the technology that consumers are already embracing…We just need to make the next leap by bringing it into financial services.”
More financial institutions are investigating the opportunity of biometrics within their services. At the CU InfoSecurity 2017 conference in San Diego, Joseph Pham, Senior Director of Risk and Authentication at Visa presented benefits of biometric technology as a primary or secondary option to other forms of financial verification. With financial institutions catching onto this technology trend and the five-factor initiative to kick-start the industry, consumers can expect a change sooner than they think.
Read more here – “Consumers ‘Overwhelmingly’ Prefer Biometric Security For Financial Services,” (Matthew Broersma, Silicon)