Top 4 trends that affect biometrics in BFSI

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The global biometrics market in BFSI is anticipate to witness a remarkable growth of 20 percent by 2020. There are top four emerging trends that impact biometrics in the field of BFSI today.

The worldwide biometrics market in the BFSI industry is anticipated to see an impressive CAGR of almost 20 percent by the year 2020. Biometrics is being implemented hugely in mobile devices to control accessibility. Mobile organizations have biometric fingerprint sensors in their devices for managing accessibility of data and applications.

THE EMERGENCE OF BIOMETRICS
Next generation biometrics implements smart devices leveraging better technology. They support gathering of high quality data in which they’re being used. Devices are targeted to certain instances. Hybrid devices increase accuracy in identification through combining two or several approaches and technologies to the market. Biometric identity unites offer security protection from different perspectives. Units are composed of integrated biometric capture devices. Biometrics is utilized in identifying anyone in a repeatable, accurate manner. Physiological characteristics utilized for biometrics usually include fingerprints, face, voice and DNA.

Mobile devices utilize capacitive technology for implementing security systems. The growth of the biometrics security system is fueled by the growing threats. Numerous portable device implementations gave rise to numerous technology breakthroughs in terms of weights, size and length of battery use.

REPORT ON THE GLOBAL BIOMETRICS MARKET IN BFSI
Technavio released a new research report on the global biometrics market in BFSI sector that analyzes the most vital trends that are expected to impact the outlook of the market from 2016 to 2020.
Biometrics as an authentication service in BFSI is becoming more and more in used, as with an advanced program executed in India. Biometrics are gathered from the Indian people to provide proof of identity not just for government services, but banking, telecom and healthcare services as well.

TOP 4 EMERGING TRENDS THAT AFFECT BIOMETRICS IN BFSI

1. ADOPTION OF VEIN RECOGNIITION. Is used in POS terminals and ATMSs, multimodal biometrics in BFSI sector, the facial recognition proliferation and introduction of voice biometrics in the sector as well. Banks and financial institutions in developing countries, like in India, Argentina, China, Mexico, Brazil and South Africa are open and set to adopting vein recognition biometrics for verifying customers’ identity. It is likely to find bigger adoption in the next couple of years, particularly in mobile banking, for accuracy and mobile-friendliness.

2. MULTIMODAL BIOMETRICS. Uses a combination of two or more biometric technologies for identifying and verifying individuals is growing fast. The combination of biometrics, such as finger vein pattern and fingerprint or a combination of fingerprint, voice pattern and iris, offers a more reliable, secure, accurate and capable of avoiding spoofing attacks. Analysts state that this is likely to drive higher adoption in the BFSI sector in countries all over the world.

3. FACIAL RECOGNIITION TECHNOLOGY. It is a growing traction in the BFSI sector. It provides clients secure access to bank accounts with no need to use a username and password. Report finds that the report discovers that 3D technology of facial recognition is influenced further with the increasing demand in online banking services, ATMs, mobile payment and online banking services. Using 3D biometrics facial recognition in BFSI is gaining popularity and likely to be adopted in other business areas, like personalized assistance, loan approval and determination of blacklist customers.

4. VOICE BIOMETRICS. This is the fourth emerging trend in the BFSI sector. Voice biometrics offer secure access to bank accounts. The tech helps end-users accomplish transactions through verification of identify with their voice.

INCREASE DIGITIZATION IN BFSI
Increase digitization of BFSI would drive growth in the BFSI biometrics market. The increased use of smart phones and devices led to a digital reformation of the industry. The sector is one of the prominent users of portable devices for cashless transactions and digital payments. With the growing volumes of transaction and the introduction of new digital payment solutions, the banking field is challenged with the need to keep the magnitude of fraudulent activities low, while uncompromising the convenience of customers.

BENEFITS OF BIOMETRICS IN BFSI

  • Protect bank information. Biometric technology provides the most robust method of authentication, which protects bank information from getting compromised by unauthorized personnel.
  • Accurate and fast branch banking. The technology offers accurate and fast identification for the banking field. Customers could be authenticated quickly in just seconds via a fast biometric scan.
  • Secure online banking. Over the years, the financial industry has been suffering from massive cyber-attacks. In most instances, customers lose money from the negative impact of identity theft. Banking biometrics help the banks protect identities of their clients when using online banking services.
  • Protection from insider fraud. Biometric identification of employees doing transactions on the back end is an integral step to ensure protection of identity and minimizing fraud. BFSI biometrics help financial institutions prevent insider fraud via establishing secure employee authentication, concrete audit trail and accountability of every transaction.

The biometric technology, integrated with existing traditional security system, empowers financial institutions to deploy the highest authentication security level possible.

Ritesh Mehta
Ritesh Mehta works as a senior Technical Account Manager in a software development company named TatvaSoft Australia based in Melbourne. He specializes in Agile Scrum methodology, Marketing Ops (MRM) application development, Android app development, SAAS & SOA application development, Offshore & Vendor team management. Also, he is knowledgeable and well-experienced in conducting business analysis, product development, team management and client relationship management.

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