With the unfortunate rise of sophisticated bank fraud and identity theft that has accompanied branchless banking, it is not a surprise that banks and credit unions are looking for ways to fight back to protect their clients. One of the most effective weapons available to prevent these crimes from happening to an account holder is the use of biometrics in identity confirmation.
According to the experts at M2SYS Technology, biometrics is “the science of recognising an individual based on their physical and behavioural traits such as: a fingerprint, finger vein or palm vein pattern, or iris recognition.” Biometrics coupled with a quality video feed can solve the problem of identity confirmation. Having more secure bank transactions helps both clients and financial institutions long-term. Having to deal with less fraud and therefore losing less money in compensating the victims of this crime, banks and credit unions benefit substantially, and clients feel safer.
The move toward biometrics is steady in the United States. The Bank of America announced just a year ago that their customers can access their mobile banking app with their fingerprints, bypassing the less secure passcode or PIN. At the beginning of 2016, according to NFC World, the American Bankers Association Card Policy Council called for “all consumer-facing industries to implement the latest payment protection technologies, including EMV chip cards, tokenisation and biometrics.” Many account holders are seeing the first step toward this transition by receiving their first chip card in the mail. In addition, EDC machines with the ability to read fingerprints are becoming more commonplace in retail transactions than ever.
A Vital Measure
The move to nearly completely branchless banking is steady as banks resolve the security issues of more specialised transactions: beyond simple mobile deposits and withdrawals. With the rate of in-branch transactions steadily decreasing, the security of branchless banking, especially via mobile devices, is a top priority. Though the transition to using biometrics may at first be daunting and unfamiliar to the casual user, becoming comfortable with using it for added financial security is vital.