Biometric Banking Apps Target
August 1, 2016
market hype is shifting away from consumer electronics and
toward biometric banking technologies that appeal to
millennials, finds ABI Research. A mix of agile startups and
powerful leading payment card players are integrating biometrics
into mobile payment services, smart cards, and ATMs to improve
banking security and authentication through innovative form
“This market shift is occurring faster than initially
anticipated, with global revenues for biometric banking
technology expected to top $4 billion by 2021,” says Dimitrios
Pavlakis, Industry Analyst at ABI Research. “North America alone
accounts for almost $8 billion in payment card fraud, a
statistic that suggests the need for greater transaction
The new biometric banking applications specifically target
millennials, with many in this generation quick to adopt the new
technology. Ease of transaction, increased security, and greater
user experience are the top tier features that attract customers
to biometric banking.
Mastercard has already integrated facial biometrics into its
arsenal allowing users to pay using selfies, while banks
worldwide are adopting fingerprint, voice, and facial
recognition for personal banking. And it is not just banks and
payment card players getting in on the action—Japanese vein
recognition market leaders Fujitsu and Hitachi honed their
technology over the past years to develop an intuitive vein
recognition solution for ATM applications. Vascular biometrics
authenticates a user by identifying the unique patterns made by
his or her veins.
Given the market appeal, pioneering startups were quick to
follow suit. Atom Bank is testing the limits of mobile services
through its biometrically-fueled, online-only banking approach.
And Diebold and Eyelock recently partnered to deliver an iris
recognition ATM that leverages NFC and QR technology via the
users’ smartphone devices.
the market is experiencing rapid adoption of these new biometric
banking applications, vendors still struggle to tend to the
ever-increasing vulnerabilities. Sensor and device
manufacturers, algorithm designers, SDK and app developers, and
information security providers will face significant challenges
moving forward. Some aspects that will need addressing include
leveraging and upgrading the existing infrastructure,
interoperability issues, and data security.
“Security flaws are always a concern, and even more so when
customers’ biometric data is involved,” concludes Pavlakis.
“Banks and banking service providers will need to assure their
clients that their data is being stored and managed