Biometrics 2nd most popular identity verification method as OTP fades, Regula study finds
Digital document verification remains the top method chosen for digital identity verification, according to a survey by Regula which finds it is used by 65 percent of organizations. Most that do not currently perform document verification plan to do so this year.
Fingerprint biometrics are the second most popular method, used by 60 percent of responding organizations, just ahead of one-time passwords (58 percent). Fingerprint verification is particularly popular among telecom and fintech providers, according to Regula.
Businesses vary widely in terms of how much of their IT budget goes towards identity verification. The most common response (17 percent) was an allocation of 11 to 20 percent of annual IT spending, just ahead of 21 to 30 percent, allocated by 15 percent of organizations. One in three plan to increase their identity verification spending by 20 percent over the next three years.
The results are from an online survey of over 1,000 decision makers in fraud detection and prevention, carried out by Sapio Research.
The main motivation it found for implementing ID verification is worry about identity fraud (43 percent), followed by digitization of processes (34 percent), and then a pair of customer satisfaction-related answers at 29 percent each.
“The IDV market will inevitably grow, and we surely haven’t yet seen its peak,” says Regula Executive VP of Identity Verification Solutions Henry Patishman. “With the number of new users rising non-stop, along with the general trend towards digitalization, businesses will have to adapt and implement new methods of onboarding and verification of their customers. It may sound like a challenge to embed a wide spectrum of various IDV solutions; however, the whole process can be easily organized with a single solution from one vendor whose comprehensive approach to IDV solution development makes it possible to cover all the steps in identity verification.”
Partnerships for Au10tix and Nethone
Au10tix has partnered with InfoTech to deliver the former’s KYC and fraud prevention technologies to businesses in South Africa, Botswana and Namibia.
Banks, fintechs and other organizations in the region will be able to use Au10tix’ identity document authenticity checks and selfie biometrics to authenticate applicants within four to eight seconds, according to the announcement. Applicants can also be checked against Home Affairs databases, says Au10tix EMEA Sales Director Gil Klein.
“Southern African banks, financial service providers, retailers and even organisations that must verify the identity of teams on-site are becoming bogged down by manual identity verification processes. These processes can be time-consuming and error-prone. The fewer manual processes involved, the more secure the entire environment, so we are seeing growing demand for a solution such as AU10TIX in the market,” says InfoTech CEO Mauritz du Toit. “The fact that it can be hosted on InfoTech’s cloud is an important benefit and expands our growing cloud portfolio.”
Financial industry software developer Ailleron is tapping Nethone for identity verification capabilities to expand its cybersecurity, AML and fraud prevention portfolio.
Nethone’s behavioral biometrics will be deployed for efficient onboarding and to reduce friction in customer authentication.
The company was bought out by MangoPay Group last November.
Malaysian digital wallet implements stronger authentication
Malaysia’s Touch ‘n Go eWallet, which has 15 million users, has completed its implementation of smartphone-based biometrics for improved user authentication, reports SoyaCincau.
Support for Touch ID and Face ID biometrics is one of five measures Touch ‘n Go has taken to comply with a mandate from Bank Negara Malaysia, the country’s central bank, for more secure user authentication, according to the report. The central bank wants financial service providers to eliminate SMS and one-time passwords (OTP) for identity verification by June, 2023.
While the report specifies native biometrics on Apple devices, there are clear indications on Touch ‘n Go’s site that face verification has been previously supported on Android devices as well.
A video depicts how to activate the biometric feature for eKYC checks.
AU10TIX | biometric authentication | biometrics | document verification | face biometrics | financial services | identity verification | KYC | Nethone | Regula