Biometric banking market projected to serve 1.9 billion customers in 2020
By the end of 2020, 1.9 billion bank customers will be using biometrics for a variety of financial services, including ATM cash withdrawals, proving identity for digital onboarding, accessing digital bank services through IoT devices, and mobile bank app authentication, according to new research from Goode Intelligence.
The “Biometrics for Banking; Market and Technology Analysis, Adoption Strategies and Forecasts 2018-2023 – Second Edition” report also says that biometric authentication for banking purposes will generate $4.8 billion in revenue by 2023.
Biometrics will be used in banking to prove customer identity both actively and passively for telephone interactions, and to initiate money transfers while using web-based e-banking services with a combination of modalities, such as face and voice, according to the report. Biometric authentication in mobile bank apps will be through authentication app or SDK or using an embedded sensor.
“Customer experience and convenience are major drivers for the adoption of biometrics by agile third parties wanting to differentiate their services with each other – it will be an ultra-competitive market and biometric authentication could be a key differentiator,” says Goode Intelligence Founder and CEO Alan Goode, who authored the report.
“The emergence of new channels is being driven by the Internet of Things (IoT) and we are only at the beginning of a movement that allows bank customers to access banking services from a wide range of intelligent connected devices that include the smart home, smart car and smart city. The availability of secure banking APIs – part of the Open Banking movement – is allowing third parties to integrate banking services into their devices and services allowing bank customers to better manage their day-to-day finances. Biometric technology is fast becoming the glue that binds this technology together; passively verifying a person’s voice while they talk to their smart speaker and allowing them to pull up their latest account balance with a voice command. Then, actively requesting a face or palmprint when the bank’s risk engine decides that a money transfer request is outside the normal risk appetite – for instance, that ride-share through the streets of central London is a riskier transaction than the one initiated at home. This linking of fraud management, adaptive authentication and a choice of passive and active biometric tools will be key for banks wanting to stay in the game.
The report includes analysis of the market’s key drivers and barriers for adoption, reviews of key biometric technologies, stakeholder interviews, and regional and global market forecasts.
Goode Intelligence will hold its Banking Summit London 2018 later this month.