By Chris Van Der Stad and Scott Hess
Thanks to innovations like Apple Touch ID and Amazon Echo, biometric technology – using human characteristics such as voice, fingerprint, palm vein or iris patterns for identification – is becoming commonplace for many consumers. The biometric trend has significant implications for financial services, particularly in the area of authentication.
Efficiency and Improved Member Experience
Biometric technology can increase efficiency and enhance the member experience in both the mobile channel and in the branch. In a recent Fiserv Expectations & Experiences quarterly consumer trends survey, mobile users said fingerprint login was the feature they most wanted to see added to their mobile banking app. This type of authentication can make it quicker and easier for members to access their accounts and has positive implications for security.
In the branch, biometric authentication can replace inefficient, manual processes and allow more time for personal interaction. For example, Verifast™: Palm Authentication from Fiserv uses near-infrared sensors to capture a user's palm vein pattern to authenticate members, eliminating the need for photo IDs and account numbers.
Gesa Credit Union in Richmond, Wash. recently implemented Verifast technology and reduced the time it takes to authenticate a member in the branch by 93 percent. Further, according to an April 2016 National Consumer Research Survey by Raddon Financial Group, 82 percent of consumers consider palm authentication “somewhat” to “extremely” valuable.
Enhanced Security
Biometric technology for authentication can provide added security and reduce risks associated with passwords and other conventional security systems.
Authenticating account holders in the branch using unique biometric patterns matched against a database of pre-registered users can add an extra layer of security to sensitive transactions, such as withdrawing funds. Biometrics also can enhance security and efficiency for tellers and branch staff by enabling single sign-on via a palm vein reader embedded in a mouse, to prevent unauthorized access to credit union systems, enforce internal security measures and provide an essential audit trail.
In the mobile realm, biometrics can work with other technologies to help detect fraud. For example, combining voice recognition with geolocation when a mobile payment is made can help to answer the question of whether a transaction is typical for the user.
Targeted Marketing and Tailored Services
Pairing mobile devices with in-branch technology offers opportunities for targeted marketing and personalized member services. For example, a credit union could use an iBeacon or geolocation to identify a member upon entering the branch, and then push out a notification for the member to authenticate using their Touch ID or an in-branch palm-vein device. Once authenticated, the mobile app could direct the member to a branch representative that already knows who they are and is prepared to assist them.
The Future of Biometrics and Banking
Evolving device capabilities will strongly influence the evolution and adoption of biometric technologies. Before rolling out these technologies, credit unions will want to ensure their staff is prepared to answer questions, help members feel comfortable with the changes and explain the benefits that will result.
With the potential to transform a wide range of financial experiences, biometric technologies can help make the financial services experience more convenient and secure for consumers and financial institutions alike – and ultimately deliver a better member experience.
Chris Van Der Stad is Chief Technology Officer, Open Solutions, Fiserv, and Scott Hess, VP, User Experience and Innovations, Digital Channels, Fiserv