Biometric technology is becoming more popular as several industries adopt digitalization. Financial institutions consider this a worthy investment when digitally processing transactions, onboarding customers, and maintaining data security. It identifies a person’s identity through fingerprints, face, or iris scanning before granting them access to financial services. These unique identities cannot be duplicated, contributing to more convenient and secure transactions.
Facial recognition is an excellent biometric technology used in financial institutions. It is also a leading identity authentication solution in many applications, including border surveillance, crime detection, forensic investigations, and information security. It is also becoming the preferred method of ID verification for new customers and existing account holders. It improves their customer experience and increases service satisfaction.
Challenges and Risks of Facial Biometric Authentication
Facial recognition is the most prominent form of user identity verification. It contributes to more efficient and advanced customer service. It also helps users avoid difficulties in using traditional and less secure authentication methods.
Digital banking has made completing financial transactions more convenient. It allows customers to pay bills online, transfer money, and deposit cheques without traveling to physical banks.
However, using unsecured online platforms increases the risk of cyber threats and data breaches. Financial institutions are encouraged to adopt robust and cutting-edge biometric authentication services to safeguard their clients’ credentials and accounts.
Biometric technology with facial verification provides liveness checks to prevent spoofing. Criminals use inventive means, such as 2D graphics and video playback, to fool the system and establish that they are the account owner. Facial verification technology with a challenge-response feature can address this as it can determine if the person is real or an image.
Despite the advantages, it also poses several obstacles and restrictions. It requires an extensive dataset to navigate biometric algorithms. However, obtaining these datasets is challenging due to privacy rules, rising data breaches, and the proliferation of cyberattacks. Poor-quality datasets could create biases and result in erroneous matches, negating the technology’s objectives.
Why is facial biometric authentication essential to banks?
With eKYC, financial service providers can onboard customers remotely and verify their identities with higher accuracy and security. When a person wishes to register with a financial institution, face recognition technology can authenticate users by comparing their photos to their documentation. It is highly convenient, as it eliminates the need for new customers to visit a physical bank to verify their identity.
Additionally, clients who utilize face recognition online no longer need to bring bank cards and remember passwords. They can enjoy contactless payment and go cashless, offering an efficient transaction experience.
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