Biometrics is a technology that has been adopted by all sectors, including financial services. The use of biometrics helps in ensuring security, and it also allows organizations to carry out authentication effectively. This is a key requirement in financial services as per Bahaa Abdul Hadi. The sector needs to be ready to capitalize on the opportunities offered while being ready to take on the challenges.

Opportunities offered

Biometrics offers many opportunities for organizations in the financial sector. Both speed and security can be enhanced by using biometrics. With many security risks around, it is no longer possible to rely on passwords and PINs. Biometrics enhances security levels by offering a security system that is relatively fool-proof. Robust biometrics systems have ensured that chances of spoofing are almost nil.

The speed of authentication has also increased thanks to the use of biometrics. Whether it is fingerprint scan, iris scan, or face recognition technology has allowed for quicker authentication making biometrics convenient for users. Another benefit for users is that they need not remember passwords and PINs. Authentication becomes seamless and trouble-free thanks to biometrics.

Some of the other key opportunities that can be capitalized on are:

  • The increasing use of smartphones allows for easy biometrics authentication. Fingerprint scanners are now available on most phone models. Face recognition can also be carried out easily allowing for more convenient authentication.
  • Even at ATMs, it is possible to do away with PINs. Biometrics scanners can be used for more secure authentication.
  • Voice authentication is another key opportunity that financial firms can focus on. This will allow them to authenticate users based on their voice while talking to them over the phone.
  • Cybersecurity can be enhanced by using biometrics. Computer security in businesses can be made fool-proof by using biometrics.
  • Fraud prevention is another area useful for financial services firms. They can use biometrics to prevent fraud and ensure they are dealing with the right person.
  • Improved compliance to regulatory norms is another opportunity that biometrics presents. Access to data can be controlled better and creating audit trails is also easier.

The challenges

While the opportunities are vast, there are also challenges that firms need to focus on:

  • Smart hackers can even hack into biometric data. It is important to create systems to not only prevent hacking, but also ensure that data is encrypted so hackers can’t use it.
  • There are risks involved in collecting and storing biometric data. Privacy issues are involved and businesses need to ensure they comply with regulatory norms.

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