Goode Intelligence, in its Biometrics for Financial Services analyst report series, has identified five key trends that are driving the adoption of biometrics for financial services and creating a market that shall be worth over $11 billion by 2020.
Goode Intelligence, in its Biometrics for Financial Services analyst report series, has identified five key trends that are driving the adoption of biometrics for financial services and creating a market that shall be worth over $11 billion by 2020.
The five key trends from the series include biometric adoption across all financial service areas:
- Biometrics set to replace PINs for ATM security in any one of these scenarios;
- Cardless using a biometric sensor integrated into the ATM
- Cardless using mobile-based biometrics as the identifier for cash withdrawal
- Biometric plastic cards, either;
- Biometric sensor integrated into card for match-on-card
- Biometric data stored on card with customer presenting biometric at sensor integrated into ATM for match-on-card
- Contactless mobile payments driven by mobile payment solutions offered by Apple, Google, Samsung, PayPal, Alipay and traditional payment scheme providers
- Rising Card-Not-Present (CNP) fraud tackled by mobile biometric user authentication and step-up transaction verification with support from EMVCo and 3D Secure 2.0
- Wearable payments to support biometric modalities that are fit for the device; including heartrate (ECG) and behavioral
- Multi-modal biometric authentication to become da-facto for mobile banking apps
Goode Intelligence’s Biometrics for Financial Services series includes three separate analyst reports that details the adoption of biometric technology across a wide range of financial services and includes a deep-dive investigation into biometrics for banking, payments and mobile:
- Biometrics for Banking; Market and Technology Analysis, Adoption Strategies and Forecasts 2015-2020
- Biometrics for Payments; Payment Security Gets Personal; Market and Technology Analysis, Adoption Strategies and Forecasts 2015-2020
- Mobile Biometrics for Financial Services; Market and Technology Analysis, Adoption Strategies and Forecasts 2015-2020
Key forecasts from the series include:
By 2020, there will be over 622 million mobile banking app downloads that support biometrics for customer authentication and transaction verification
- Almost 160 million wearable devices supporting biometrics for banking by 2020
- By 2020, biometrics will secure over $5.6 trillion of payments
- 350 million customers used biometrics for payment security during 2015
- billion users of mobile biometrics for financial services by 2020
Alan Goode, author of the report and founder of Goode Intelligence said, “Both established financial services organizations and FinTech providers now understand the importance of choosing the most appropriate user authentication and transaction verification technology that can work across all finance channels and can meet the needs of convenience and security. Biometrics certainly ticks the boxes for convenience with millions of customers around the world paying for products and accessing mobile banking with the touch of a finger or by taking a selfie. A number of biometric platforms are also being introduced that also tick security, regulatory and privacy boxes including IEEE’s Biometric Open Protocol Standard (BOPS).
Building on Goode Intelligence’s insights from eight years of engagement in the authentication and identity sector, the report includes user, transaction and revenue forecasts for the six year period from 2015 to 2020.
“What is exceptional about this market is the sheer scale of deployment that has already taken place and the enormous potential that is yet to come. From millions of Brazilians daily withdrawing cash from biometrically-enabled ATMs, to mobile banking customers accessing their accounts with the touch of a finger or by taking an image of their face, the use of biometrics for financial services is improving security, reducing financial fraud and removing the need for cumbersome authentication solutions that are not fit for purpose in today’s hyper-connected world.”
The Biometrics for Financial Services analyst report series investigates the adoption of biometric technology across all major banking and payment channels including; in-branch, electronic banking, telephone-based banking and contact-centers, mobile banking and payments, wearable banking and payments, ATM (including cash and Bitcoin), biometric cards and eCommerce. All major biometric modalities are covered including fingerprint, face, behavioral, iris, eye-vein, voice, palm-vein, finger-vein and heartbeat (ECG).