Goode Intelligence: biometrics will be used by 1.9bn bank customers by 2020
12 June 2018 16:42 GMT

Biometric tech intelligence consultancy Goode Intelligence has found in its latest research that by the end of 2020, some 1.9 billion bank customers will be using biometrics for most banking transactions.

In Biometrics for Banking; Market and Technology Analysis, Adoption Strategies and Forecasts 2018-2023 – Second Edition, GI states that biometrics will be used for everything from ATMs to proving identity for digital onboarding, and accessing digital bank services through  IoT devices.

Biometric vendors are experiencing tremendous growth on the back of the escalation of consumer-led adoption of biometric authentication. The adoption for banking purposes is a major contributor to this growth and Goode Intelligence forecasts that by 2023 it will contribute US$4.8 billion in revenue for companies involved in delivering biometric systems to the banking industry.  Biometrics for banking is increasingly a vital part of a bank’s toolkit in the never-ending task of reducing financial fraud and ensuring that customers can conveniently prove their identity when accessing bank services – resulting in smarter identity verification and authentication for the customer-first bank.

Alan Goode, founder and CEO of Goode Intelligence and author of the report, said “Biometric technology is being rapidly deployed to support a wide range of banking services, from the traditional – ATMs and branches – to the new banking channels of mobile and IoT. Customer experience and convenience are major drivers for the adoption of biometrics by agile third parties wanting to differentiate their services with each other – it will be an ultra-competitive market and biometric authentication could be a key differentiator. 

“The emergence of new channels is being driven by the Internet of Things (IoT) and we are only at the beginning of a movement that allows bank customers to access banking services from a wide range of intelligent connected devices that include the smart home, smart car and smart city. The availability of secure banking APIs – part of the Open Banking movement –  is allowing third parties to integrate banking services into their devices and services allowing bank customers to better manage their day-to-day finances. Biometric technology is fast becoming the glue that binds this technology together; passively verifying a person’s voice while they talk to their smart speaker and allowing them to pull up their latest account balance with a voice command.  Then, actively requesting a face or palmprint when the bank’s risk engine decides that a money transfer request is outside the normal risk appetite – for instance, that ride-share through the streets of central London is a riskier transaction than the one initiated at home. This linking of fraud management, adaptive authentication and a choice of passive and active biometric tools will be key for banks wanting to stay in the game.

“Of course, treating biometrics as an important tool for banks, rather than thinking of it as a silver bullet, is vital in ensuring that digital transformation projects that leverage biometric technology are successful.”

The report investigates the current global adoption with market analysis including key drivers and barriers for adoption, interviews with leading stakeholders, technology analysis with review of key biometric technologies and profiles of companies supplying biometric systems to banks.  It also includes regional and global market forecasts for users and revenue for the six-year period from 2018 to 2023. The report is the first in a three-part series –Biometrics for Financial Services – that also includes Biometrics for Payments and Mobile Biometrics for Financial Services.

 

Further information about the Biometrics for Banking report can be found at https://www.goodeintelligence.com/report/biometrics-for-banking-market-technology-analysis-adoption-strategies-forecasts-2018-2023/