Are biometrics pointing to opportunities for banks?

Are biometrics pointing to opportunities for banks?

Thomas Rex

SVP at Fingerprints

Views 334

Are biometrics pointing to opportunities for banks?

07.10.2019 10:45 am

Innovation comes in many forms. It makes the world around us look better, work faster and be more useful for companies, consumers and communities. Biometric technology has been around now for some time, but recent technological developments are driving significant adoption across new use cases, especially in banking & payments.

We spoke with banks and consumers across the world, and we have identified a wealth of opportunities for banks that are embracing biometrics. From turning up the style to increasing revenue, here are some of the ways banks look set to benefit.

Ease and style

75% of bank respondents see fingerprint biometrics as the most user-friendly and slickest security method, whilst offering the best UX. As shown by the high rate of adoption in the smartphone market, consumers rate this method as well. Not having to remember or use a PIN code is a key benefit, especially for the older segments that are at risk of being left behind in an increasingly digital and cashless world. 

What’s more, banks and fintechs are bringing out innovative new card designs. From vertical orientation to gold inlays and metal cards; biometrics are the perfect accompaniment to ramp up the style as its coolness factor is a key driver for consumer adoption beyond the ease of use and security. 

A premium offering

When it comes to roll-out, 56% of our surveyed banks plan to introduce biometric payment cards as a paid service for premium customers. This offers the opportunity to increase revenue from payments, as well as adding a point of differentiation against competitors.

Increasing the value of transactions

As the motivation behind the trials like NatWest’s in the UK and Société Générale in France shows, being able to remove the cap on contactless payments is a big selling point. 79% of banks we spoke to cited payment caps as the main limitation of contactless cards today. Biometric payment cards offer a secure solution to ‘scrap the cap’ and realize the true potential of contactless. The feedback from ongoing pilots also shows an increased transaction value when using biometric cards.

Getting one step ahead of competitors

100% of the banks we spoke to are aware of biometric payment cards, however only 24% consider themselves fully informed. For those banks willing to invest in research and prioritize biometrics in their innovation roadmap, the opportunity to overtake competitors is there.

Addressing customer security concerns 

Contactless security is one area where banks and consumers disagree. Despite only 57% of banks considering security to be the main issue around contactless, this is consumers’ primary concern. Biometric-authenticated payments across mobile and card are an effective solution to help build consumer confidence. Recent research by Gemalto, a Thales company, showed that 86% of respondents believe biometric payment cards are more secure than traditional Chip and PIN.

Unifying the journey 

Another benefit of introducing biometrics is to bring harmony to the UX across mobile, online and in-store. As the focus on the customer journey has shown over the past few years, delivering clunky and frustrating shopping journeys is a sure-fire way to lose customers and revenues. This is seen by respondents as particularly important for addressing the younger and more tech-savvy consumer segments, seeing the latest cool innovative biometric card as a great companion to mobile wallets and other payment devices. 

An opportunity needs to be acted on

It’s clear that biometrics offer a lot of potential when it comes to the innovation roadmap for banks. Increased revenue avenues; alleviating consumer concerns around contactless security; improved UX…these are all achievable in the short to mid-term.

Latest blogs

Martijn Groot Asset Control

How Machine Learning is Changing Data Management and Investment Processes for Active Managers

AI and Machine Learning techniques are finding their way into financial services. Ranging from operational efficiencies to more effective detection of fraud and money-laundering, firms are embracing techniques that find patterns, learn from them and Read more »

Faniel Thomas Moneyfarm

What You Need to Know About Stocks and Shares ISAs

Many of us are familiar with the tax-free benefits associated with a standard Individual Savings Account (ISA). However, a variant known as a stocks and shares ISA is becoming an increasingly popular alternative. What is the basic principle behind a Read more »

Anthony Walton Iliad Solutions

Immediate Payments – Readiness

The payments industry is seeing a massive global surge in the implementation or modernisation of Immediate Payment systems. These systems challenge the status quo, and when used effectively create real opportunities for financial institutions to Read more »

Dr Bimal Roy Bhanu AiXPRT

AI-washing: is it machine learning … or worse?

There are widespread misconceptions about Artificial Intelligence (AI), including its powers and what it can and can’t do. Which means that potential users may have unrealistic expectations of what they will see when they’re presented with AI. For Read more »

Todd Clyde Token

Making Open Banking Pay with a Superior API

The success of open banking will ultimately depend on the difference it makes to customers. It’s one thing for people to be able to see all of their various account balances in one place. But if the process for moving money or managing payments Read more »

Related Blogs

Lina Andolf-Orup Fingerprints

Fingerprint On The Pulse: Biometrics On The Move In More Places Than One

We may be halfway through 2019, but as the year hurtles onwards, it’s important to pause and reflect on the latest and greatest news from Q2. With milestones surpassed – and fading into the distance – coupled with the ongoing adoption of biometrics Read more »

Lina Andolf-Orup Fingerprints

Finger on the pulse! 2019’s big biometric news so far…

It’s already Q2! It has been a momentous few months for biometrics, so it’s not surprising the year is passing so quickly. New products launched, new milestones reached, and new market trials initiated. Biometrics is expanding and advancing rapidly Read more »

Hakan Nordfjell Gemalto UK

Integration of Biometric Technology Into Consumers Daily Lives

It’s encouraging to see more conversations take place around the role biometric sensors can play in authentication. Increased consumer demand for these services highlights the potential this technology has. With most of us having to remember an Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel