Goode Intelligence reveals biometrics trends in financial services
03 February 2016 13:19 GMT

Identification-focused consultancy Goode Intelligence has identified five key trends that it says are driving the adoption of biometrics for financial services.

In the latest report in its Biometrics for Financial Services analyst report series, Goode Intelligence predicted that the sector that shall be worth over $11 billion by 2020.

Meanwhile, by 2020, there will be over 622 million mobile banking app downloads that support biometrics for customer authentication and transaction verification.  Almost 160 million wearable devices supporting biometrics for banking by 2020 and by 2020, biometrics will secure over $5.6 trillion of payments.

The five key trends were: Biometrics replacing PINs for ATM security ; contactless mobile payments driven by mobile payment solutions ; rising Card-Not-Present (CNP) fraud tackled by mobile biometric authentication; wearable payments and, finally, multi-modal biometric authentication becoming da-facto for mobile banking apps.

Alan Goode, author of the report and founder of Goode Intelligence said “Both established financial services organisations and finTech providers now understand the importance of choosing the most appropriate user authentication and transaction verification technology that can work across all finance channels and can meet the needs of convenience and security. Biometrics certainly ticks the boxes for convenience with millions of customers around the world paying for products and accessing mobile banking with the touch of a finger or by taking a selfie. A number of biometric platforms are also being introduced that also tick security, regulatory and privacy boxes including IEEE’s Biometric Open Protocol Standard (BOPS).

“What is exceptional about this market is the sheer scale of deployment that has already taken place and the enormous potential that is yet to come. From millions of Brazilians daily withdrawing cash from biometrically-enabled ATMs, to mobile banking customers accessing their accounts with the touch of a finger or by taking an image of their face, the use of biometrics for financial services is improving security, reducing financial fraud and removing the need for cumbersome authentication solutions that are not fit for purpose in today’s hyper-connected world.” 

The Biometrics for Financial Services analyst report series investigates the adoption of biometric technology across all major banking and payment channels including; in-branch, electronic banking, telephone-based banking and contact-centers, mobile banking and payments, wearable banking and payments,  ATM (including cash and Bitcoin), biometric cards and eCommerce. All major biometric modalities are covered including fingerprint, face, behavioral, iris, eye-vein, voice, palm-vein, finger-vein and heartbeat (ECG).