November 3, 2016 -
Technavio has released a new research report on the global biometrics market in the banking, financial services and insurance (BFSI) sector, which analyzes the most important trends expected to impact the market outlook from 2016 to 2020.
The report finds that the global biometrics market in the BFSI sector is projected to see a CAGR growth of close to 20% over the forecast period.
Technavio ICT research analysts identifies the top four emerging trends driving the global biometrics market in BFSI sector as the adoption of vein recognition in ATMs and POS terminals, multimodal biometrics in BFSI sector, the proliferation of facial recognition in BFSI sector, and the introduction of voice biometrics in BFSI sector.
“With increase in instances of security breaches and transaction frauds, the need for highly secure identification and verification systems has increased manifold in the BFSI sector,” said Amrita Choudhury, a lead analyst from Technavio, specializing in research on automatic identification systems sector. “Biometrics authentication is considered as an ideal solution to address the security issues in the BFSI sector because it relies on the unique physiological features of the individuals.”
The report finds that banks and financial institutions in developing countries such as India, China, Argentina, Brazil, Mexico, and South Africa are ready to adopt vein recognition biometrics to verify the identity of their customers.
Vein recognition is likely to find greater adoption in the next two years in the global BFSI sector, specifically in m-banking for its accuracy and user-friendliness.
Other major application areas of vein recognition biometrics in the BFSI sector includes door security, log-in management for PCs, ATMs, POS terminals, and banking transactions, according to the report.
The report also states that multimodal biometrics — which uses a combination of two or more biometric technologies to identify and verify individuals — is on the rise.
The combination of biometrics like fingerprint and finger vein pattern or a combination of fingerprint, iris, and voice pattern, provides a more reliable, accurate, secure, and capable of avoiding spoofing attacks.
Technavio analysts state that this is likely to drive higher adoption of this system in the BFSI sector in countries across the globe.
Another emerging trend identified in the report is the growing traction of facial recognition technology in the BFSI sector to provide clients secure access to their bank accounts without the use of a username and password.
The report finds that 3D facial recognition technology is further influenced by its increasing demand in ATMs, mobile payment at POS, and online banking services.
“The use of 3D biometric facial recognition in the global BFSI sector is gaining popularity and is likely to be adopted in other areas of the business like loan approval, personalized assistance, as well as determination of blacklist customers,” said Choudhury.
The last emerging trend identified in Technavio’s report is the financial sector’s growing use of voice biometrics to provide secure access to bank accounts.
The technology will help end-users to complete financial transactions by verifying their identity with their voice.
Previously reported, Technavio released a new report on the global mobile payment security software market, which analyzes key trends expected to affect the market outlook from 2016-2020.