The financial services industry must set aside competition and collaborate on biometrics to ensure consistent, easy, and convenient services for end users, concludes a Mobey Forum study.
Biometric services are clearly a priority among the 235 respondents from across the world—22% of the banks already offer biometrics to their customers and 65% are planning to offer services in the near future.
More than half plan to launch fingerprint biometrics for their end users, with an additional 21% focusing on voice recognition.
Authenticating the user during the login process and during payment or transaction confirmation was cited by 70% as the most important use case for biometrics in financial services.
What’s behind the urgency?
A number of key drivers for the use of biometrics are identified in the study: Nearly half of respondents say it is the convenience for their customers, together with the desire to be viewed as an innovative and advanced bank.
There are, however, a number of obstacles that need to be overcome. One in five highlighted dependence on technology providers as an issue. In addition, the customer concerns relating to privacy are seen as a barrier.
“Biometrics in financial services still face challenges,” says Sirpa Nordlund, executive director of Mobey Forum. “It is clear, however, that progress is being made and there are clearly defined use cases and benefits to moving forward. We believe that inter-bank collaboration will expedite the development of this technology and 42% of the market agrees with us. Successful financial solutions need to be easy and convenient; a collaborative approach will ensure consumers are presented with stable and consistent services, driving adoption.”
Download Mobey Forum’s Biometrics Survey [registration required]