Financial services seek balance of trust, inclusion through face biometrics advances

Advances in the flexibility of face biometric liveness, deepfake detection and cross-sectoral collaboration represent the latest measures against fraud in remote financial services. A digital bank in the Philippines is integrating iProov’s face biometrics and liveness detection, OneConnect and a partner are entering a sandbox to work on protecting against deepfakes, and an event held by Facephi in Mexico explored the challenges of financial services trying to maintain digital trust while advancing inclusion.

UnionDigital Bank adopts iProov liveness detection

UnionDigital Bank has partnered with iProov to bolster its biometric defenses against account takeover and mule activity.

The Philippine digital bank will deploy advanced liveness detection tools as part of a new risk-based authentication strategy.

“Our mission is to uplift the lives of all Filipinos through a secure, trusted, and accessible digital bank for all Filipinos, and that requires deploying resilient infrastructure capable of addressing sophisticated fraud,” said Russell Hernandez, chief information security officer at UnionDigital Bank.

“As we shift toward risk-based authentication, we need a flexible and future-ready solution. iProov’s internationally proven ability to deliver ease of use, speed, and high security assurance – backed by reliable vendor support – ensures we can evolve our fraud defenses while sustaining customer trust and confidence.”

UnionDigital Bank is the digital banking subsidiary of Union Bank of the Philippines, and offers accessible financial tools and lending products designed for underserved and unbanked communities.

The integration of iProov’s Dynamic and Express Liveness solutions enables UnionDigital Bank to tailor security levels to transaction risk. The flexibility applies protection for sensitive actions like new device logins, while maintaining a frictionless experience for routine tasks such as increasing transaction limits. iProov’s dual-layered system allows the bank to choose the appropriate liveness check for each transaction, which enhances both security and user trust, according to the London, England-based company. UnionDigital Bank plans to expand this model as part of its broader strategy to safeguard customers while growing rapidly.

The approach supports the bank’s mission to deliver safe, accessible digital banking to populations that rely heavily on mobile devices. Andrew Bud, founder and CEO of iProov, commented that he was “delighted” to have been selected by UnionDigital Bank. “[Our technology] ensures UnionDigital Bank can secure all its customers with an effortless and resilient solution, which is especially crucial for underbanked communities who rely on mobile devices for their financial needs,” he said.

The announcement coincides with Cybersecurity Awareness Month, as financial institutions worldwide face escalating threats driven by AI-enhanced fraud tactics, including deepfakes and synthetic identities. In the Philippines, regulators such as the Bangko Sentral ng Pilipinas have called for stronger consumer protection measures, prompting UnionDigital Bank to upgrade from traditional device-based biometrics to more resilient identity verification methods.

The deployment speaks to the growth in adaptive security frameworks, which balance risk mitigation with user experience.

PAObank, OneConnect join sandbox to combat deepfake fraud

Ping An Insurance Group company PAO Bank Limited (PAObank) and OneConnect Financial Technology have been chosen to participate in the second cohort of the Hong Kong Monetary Authority’s (HKMA) Generative Artificial Intelligence (GenAI) Sandbox.

The initiative, run in partnership with Hong Kong Cyberport, provides a controlled environment for financial institutions to test and refine AI-driven innovations. PAObank and OneConnect will use the opportunity to advance their joint Anti-Fraud Strategy Platform, designed to detect and prevent deepfake fraud.

The platform includes OneConnect’s video KYC technology with face biometrics for identifying forged or synthetically generated faces. Within the sandbox, the two companies will further develop the platform’s ability to counter increasingly sophisticated threats, such as adversarial face-swapping and fake videos.

The companies aim to share insights from the sandbox to encourage broader adoption of GenAI technologies in banking.

Facephi event explores Mexico’s digital trust efforts

Mexico’s financial sector is intensifying efforts to build digital trust as a cornerstone of identity verification, fraud prevention and financial inclusion, reports Mexico Business News. At the Facephi Digital Trust Meet 2025 in Mexico City leaders from government, fintech and regulatory bodies underlined the need for secure, interoperable digital identity systems to improve protection and accessibility.

FacePhi has been serving financial institutions in Mexico for around a decade, providing selfie biometrics and PAD for remote user onboarding and account access.

According to CONDUSEF, Mexico’s financial protection agency, identity-theft-related fraud in the banking system soared to $11.3 billion Mexican pesos (approximately US$611 million) in 2024 — a 77 percent increase from the previous year. Yet financial institutions reimbursed just 1.4 percent of those losses to affected users.

Jorge A. Ortiz, senior consultant at The Common Sense Project, noted during the event that digital identity is not only the first line of defense against fraud but also a gateway to financial inclusion.

The Mexican government has launched several initiatives to standardize digital identity infrastructure, including Llave MX — a single sign-on platform for public services — and the forthcoming National Digital Identity Document, designed to harmonize verification across sectors. However, adoption remains limited. Nicolás Hernández, deputy director of business and transformation at Cecoban, noted that many citizens do not recognize digital identifiers such as email addresses or CURP numbers as part of a unified identity system.

Speakers stressed that innovation, regulation, and security must evolve in tandem. Bruno Rivadeneyra, director of business development at Facephi, warned that in the rush to innovate, organizations often neglect security, leaving gaps that attackers exploit. Mexico’s 2023 General Population Law laid the groundwork for a national digital identity framework, while the Digital Transformation Agency is developing interoperable systems to connect public and private entities. Projects like the Expediente Digital Ciudadano seek to centralize personal data and integrate biometric authentication for secure transactions.

Trust remains the linchpin. “If the system does not build trust among citizens, it will not work,” Hernández said. Public education on privacy and fraud prevention will be essential to drive adoption. Experts estimate that widespread use of digital identity could boost Mexico’s GDP by up to 13 percent, reduce fraud, and bring millions into the formal financial system.

The conference also highlighted the growing threat of mule accounts.Vulnerable groups, including students and informal workers, are often tricked into lending their accounts for illegal transfers, which are rapidly distributed, converted to cryptocurrency, or withdrawn.

This “authorized fraud,” where victims knowingly approve fraudulent transactions, has quickly surpassed traditional anti-fraud tools. In response, Fintech México has boosted cooperation with CNBV, UIF, and SHCP via quarterly working groups for intelligence sharing and oversight. Mendoza urged the use of standardized data-sharing protocols to pick up anomalies such as multiple accounts linked to the same credentials or suspicious transaction patterns.

Article Topics

biometric liveness detection  |  deepfakes  |  digital trust  |  face biometrics  |  FacePhi  |  financial services  |  iProov  |  OneConnect  |  PING AN Tech