Cloud biometric systems to authenticate 586 million bank customers by 2020
There will be more than 586 million bank customers using cloud-based biometrics by 2020 for applications such as authentication during service calls, digital onboarding, and cardless cash withdrawals from ATMs, according to research from Goode Intelligence.
The report Biometrics for Banking; Market and Technology Analysis, Adoption Strategies and Forecasts 2018-2023 examines the two main models for organizations using biometrics; device-based protocols such as FIDO, OEM systems like Apple’s Face ID, and sovereign ID and blockchain schemes, and cloud-based matching.
“In 2018, banks have a choice of how to deploy biometric identity and authentication solutions. This choice is being driven by a bank’s individual requirements. This is not a debate about whether a bank should adopt a device-centric biometric authentication solution where biometric data resides on a device versus a server-side biometric system that always stores biometric data on a central server – it’s about what model or system matches a particular bank application or function,” says Goode Intelligence Founder and CEO Alan Goode.
“There is definitely room for both biometric models and one model will not necessarily win over the other. Banks are beginning to understand the benefits and disadvantages of one model over the other and will adopt either or both to match risk, regulations and regional cultural differences. In Europe GDPR is having a significant impact on the design of biometric systems as biometric data is considered sensitive data that needs high levels of protection.”
The report analyzes key market drivers and barriers to adoption, profiles companies supplying biometric systems to banks, and provides regional and global forecasts from 2018 to 2023. The report is the first in a three-part series, and will be followed by reports on biometric payments and mobile biometrics in financial services.
Goode Intelligence also forecasts that between all biometric implementation models, 1.9 billion bank customers will use biometrics for financial services by 2020.