Goode Intelligence names five key drivers of biometrics adoption for financial services

February 4, 2016 - 

Goode Intelligence has published its Biometrics for Financial Services analyst report series, which among other things identifies the top five trends that are driving the adoption of biometrics for financial services.

The biometrics for financial services market is growing at an alarming rate, with Goode Intelligence projecting the market to be worth over US$11 billion by 2020.

Leading the five key trends is the expectation that biometrics will eventually replace PINs for ATM security in different scenarios, including cardless using a biometric sensor integrated into the ATM, cardless using mobile-based biometrics as the identifier for cash withdrawal, and biometric plastic cards, either in the form of biometric sensor integrated into card for match-on-card, or biometric data stored on card with customer presenting biometric at sensor integrated into ATM for match-on-card.

Other key trends include contactless mobile payments driven by mobile payment solutions offered by Apple, Google, Samsung, PayPal, Alipay and traditional payment scheme providers; the increasing occurrence of card-not-present (CNP) fraud combated 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 compatible with the device, such as heartrate (ECG) and behavioral; and multimodal biometric authentication to become the new standard for mobile banking apps.

Goode Intelligence’s Biometrics for Financial Services series features three separate analyst reports detailing the adoption of biometric technology across a range of financial services, as well as as exploring biometrics for banking, payments and mobile.

The reports include “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”, and “Mobile Biometrics for Financial Services; Market and Technology Analysis, Adoption Strategies and Forecasts 2015-2020”.

The series features several key forecasts, including over 622 million mobile banking app downloads supporting biometrics for customer authentication and transaction verification by 2020; nearly 160 million wearable devices supporting biometrics for banking by 2020; biometrics securing over $5.6 trillion of payments by 2020; 350 million customers used biometrics for payment security during 2015; and one billion users of mobile biometrics for financial services by 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,” said Alan Goode, author of the report and founder of Goode Intelligence. “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 report series analyzes 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.

In addition to covering all major biometric modalities including fingerprint, face, behavioral, iris, eye-vein, voice, palm-vein, finger-vein and heartbeat (ECG), the report includes user, transaction and revenue forecasts for the six year period from 2015 to 2020.

Last November, Goode Intelligence launched a subscription-based Biometrics Insight Service which provides organizations with access to a large bank of biometric market research and intelligence.

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About Justin Lee

Justin Lee has been a contributor with Biometric Update since 2014. Previously, he was a staff writer for web hosting magazine and website, theWHIR. For more than a decade, Justin has written for various publications on issues relating to technology, arts and culture, and entertainment. Follow him on Twitter @BiometricJustin.