5 ways biometric technology is impacting the financial industry

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Banking threats are on the rise, threatening the security and integrity of the financial sector. Almost 70% of global banks and financial organizations are under active threat from outside perpetrators and organized crime groups who are developing stealthier ways to access financial information, resulting in billions of dollars lost worldwide.

Protecting yourself against the devastating effects of fraud and cybercrime can be difficult, but it’s not impossible. Biometric technology is changing the way individuals and large financial organizations defend against security threats that could lead to significant financial loss.

Want to learn more about how biometric technology is changing the financial industry? Keep reading to discover the five ways banking individuals and organizations are getting stronger using biometric technology.

What is biometric technology?

Biometric technology refers to security systems that rely on physical characteristics or measure biological properties to identify and verify individuals in order to gain access to secure systems.

Some prominent examples of biometric technology include fingerprint scanning or retina recognition. These features are unique to each individual, so systems verify the identity of anyone attempting to access secure systems such as bank accounts by scanning these features.

Biometric technology has been deployed in many industries and products, including transportation, such as airport security, cell phone access, healthcare, and even home and workplace security. open pathBiometric Access Control Guide says companies and technology industry leaders have increased their spending on biometric technology by 50%, demonstrating the importance of these systems.

Biometric technology provides individuals and businesses with greater peace of mind, ensuring that no unauthorized person can access sensitive information.

Five ways biometric technology is impacting the financial industry

Below is a guide to how biometric technology is changing the way the financial industry operates and interacts with its customers.

1. Secures personal and business data

Companies must make a concerted effort to secure their business data at all times. This limits the negative implications of data breaches that cost global businesses millions annual! But that doesn’t need to be the case. Biometrics is changing that as it is difficult to replicate or steal biometric data to gain access to secure systems.

With this, financial organizations and individuals can secure their or their employees’ sensitive data and continue trading and accessing accounts regardless of the threat. This ensures that hackers do not gain access to banking information and personal customer data through cyberattacks.

Reducing the number of data breaches using biometric security also helps build greater trust in financial organizations, encouraging customers to continue doing business with them and keeping their data secure.

2. Provides a more secure login experience for banking and investing apps

Mobile banking has revolutionized the way many of us access our bank accounts, transfer money to our friends, and process our earnings. In North America, it is estimated that 261 million bank account holders use online banking services, and forecasts suggest that this figure will rise to 279 million by 2024.

As this has developed, banks are using biometric technology such as fingerprint access to ensure that no user other than the bank account holder can access sensitive information. This means that the user does not bear a compromised bank account if his mobile phone is lost or stolen.

Investing apps have seen a huge increase in users over the past few years as people look for more accessible and user-friendly ways to start their investing journey. Like any financial application, it is essential that investment applications provide a secure login experience to ensure that no other user can access banking information in the user’s profile.

Typically, investment apps require a fingerprint scan before users can access their accounts, which means no one other than the account holder can access their information.

3. Remote access to confidential financial data

Financial organizations must constantly think about the customer experience when designing applications. Providing a user-friendly interface is an integral part of building customer loyalty, ensuring that all users can access their essential information wherever they are, whatever the time of day.

One of the main advantages of using biometric technology is that banks and financial organizations can provide their customers with remote access to their bank accounts and essential financial information. Customers no longer need to find a local agency or contact their supplier directly for their information.

4. Increases the physical security of high-security financial institutions

Biometric security doesn’t just work for the digital world. The use of biometric technology is a crucial step in using automated systems to enhance the physical security of high security financial institutions. Financial institutions must provide a high degree of physical security to thwart attempted theft which can result in significant financial loss.

The use of biometric security allows financial organizations to assign access authorization to specific people, using their biometric data to gain access to certain rooms or buildings. Installing smart locks that use fingerprints to unlock is a great way to secure high security areas in a financial institution and ensures businesses have ultimate control over access rights!

5. Reduce operational costs

In these times of high inflation and rising costs in just about everything, reducing operational costs and financial losses must be a priority for finance organizations. Using biometric technology may not be the first thing you consider to reduce operating costs. Yet, this security measure can save organizations a lot by thwarting identity theft, cyberattacks, and fraud.

Global losses due to payment fraud have risen to a staggering level $32.29 billion in 2020, costing individual financial organizations millions in lost revenue. If that’s not enough to motivate you to use biometric technology, the average cost of payment fraud is rising and is expected to cost well over $40 billion by 2027.

However, there are ways for financial organizations to protect themselves against huge losses due to fraud, cyberattacks and identity theft. IBM estimates that organizations that leverage technology tools like AI and automated techniques like biometrics can save an estimated $3.05 million on data breaches.

Summary

As the modern world continues to pose an increasing threat to the financial industry, it is now more important than ever for businesses to step forward and embrace biometric technology to limit the harmful effects of fraud, identity theft and cyberattacks. These five ways biometric technology is changing the financial industry prove that this automated technique offers several benefits to financial firms, including optimizing the end-user experience and reducing the amount of money lost to security breaches. data and cybersecurity threats.

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