How Facial Recognition Solves Banking’s Convenience vs. Security Dilemma

This is a guest post by Vito Fabbrizio, Managing Director, HID Global Biometric Business Unit

Financial services providers have been undergoing dramatic digital transformation for years, and the COVID-19 pandemic has only accelerated that trend as it has compelled even more customers to shift into online channels. Naturally, this has also had an impact on customer expectations. In its 2021 Global Identity and Fraud Report, Experian noted that 60 percent of consumers now have higher expectations for their online experience in the wake of the pandemic.

At the same time, a majority (55 percent) say that security remains a top priority; it’s undoubtedly a serious concern for financial services providers navigating a rapidly evolving fraud and regulatory landscape – perhaps especially in the Latin America region, where the banking sector faces enormous market potential as well as booming fraud rates.

For years, banking institutions have been relying on traditional security measures such as complex passwords, which put an extra burden on end users. Fortunately, that is no longer the case, thanks to innovative technologies like facial recognition.

Biometrics are gaining traction in the banking industry due to their ability to deliver more secure, convenient and personalized experiences. Biometric technologies use people’s unique physical traits to verify their identity and offer far superior security in comparison to passwords. You are who you say you are.

The details of a human face are vastly more complex than any password could be, and particularly sophisticated facial recognition technology can scan a face in extreme detail under virtually any lighting conditions.

And yet facial recognition is also exceptionally fast and convenient, as detailed in HID Global’s new eBook, Better Banking Experiences Start With Strong Authentication and Face Biometrics. It can authenticate an end customer without any actions required, and it can do so instantly without the need for physical contact. It can be applied using a simple smartphone camera, enabling immediate account login through a mobile app; it can be used to identify customers as soon as they enter a bank branch. It can be implemented at an ATM, enabling speedy, secure and convenient access without the need for a client’s physical bank card.

Facial recognition, combined with complementary security mechanisms like fingerprint scanning, is opening new possibilities for customer service in the financial services sector.

Read HID’s eBook, Better Banking Experiences Start With Strong Authentication and Face Biometrics to learn more.

For information about how your organization can benefit from the groundbreaking technology, visit HID Global’s website.