Biometrics will be main banking identity authorization method by 2020, says report
Goode Intelligence published its “Analyst Report, Biometrics for Banking; Market and Technology Analysis, Adoption Strategies and Forecasts 2015-2020,” which forecasts that there will be over one billion users accessing banking services through biometric systems by 2017.
In the report, Goode Intelligence predicts that by 2020, bank customers will use biometrics as the predominant identity authorization method to access bank services.
By the end of 2015, there will be approximately 450 million bank customers using biometrics in various bank scenarios including withdrawing cash from ATMs, proving identity when telephone banking, and authenticating into their mobile bank app using fingerprint.
“There is a growing desire from the banking industry to adopt convenient methods to verify the identity of their customers and this is creating the conditions to drive the adoption of biometrics in banking even higher,” said Alan Goode, author of the report and founder of Goode Intelligence. “The adoption for banking purposes is a major contributor to this growth and we are forecasting that by 2020 it will contribute US$5.5 billion in revenue for companies involved in delivering biometric systems to the banking industry.”
The report also highlights major trends shaping the industry, including the rise of mobile and multi-modal mobile-based biometric authentication, tighter integration with fraud detection and fraud management solutions including adoption of behavioral biometrics/analytics, and different speeds of adoption and regional differences.
Additionally, the report finds that mobile will drive the market in the EU, North America and China, banks seeking to use a mature national ID (NID) system that supports biometrics for identification, industry regulation beginning to specifically reference biometrics as part of its guidance on two and multifactor authentication, and biometric cards being used to provide mobile banking services in developed world scenarios and linked to National ID (NID) schemes where supported.
Additionally, the adoption of biometrics for ATM access will increase in regions where it has already been deployed.
It will also be deployed in other regions where the PIN remains the main authentication method, including using biometric capability of a smartphone to provide out-of-band biometric authentication (OOBBA) when accessing ATMs.
Finally, the report offers guidance to banks in choosing the most appropriate biometric system to meet their requirements and includes Goode Intelligence’s unique Banking Biometric System Assessment (BBSA) tool.