If bank customers are willing to accept biometrics for Internet authentication, can wider use of the technology on ATMs be far behind?
In its latest authentication report, "Banking Authentication and the FFIEC: Business Customers Crave Biometrics," Javelin Strategy & Research examines FI customers' experience and perceptions of a range of authentication methods.
The report evaluates consumers' preferences and issues with different authentication methods and provides FIs with insight into how to achieve balance between optimizing security and consumer satisfaction. Conclusions in the report might be surprising to some.
Of business bank account owners, 50 percent are more likely to consider robust identity verification methods to be very compelling or extremely compelling factors in choosing a new FI. Robust authentication can be an acquisition strategy for FIs to attract business customers, who increase their online banking activities when presented with strong and effective authentication solutions.
Javelin has predicted that FIs will begin to deploy biometric technology in 2013 to authenticate their Internet banking customers. The research firm's report examines the relative effectiveness, ease of use, and costs of authentication solutions to help FIs determine the optimal layered security strategies that meet consumers' needs.
"Voice and facial recognition will be the long-term biometric winners," said Alphonse Pascual, industry analyst for security, risk and fraud at Javelin. "Voice will launch first, as it's more mature and easier to implement in the financial services industry, especially in the mobile banking channel. FIs can easily layer voice biometrics with other authentication methods to make them more robust than they are as stand-alone authentication measures."
For more on this topic, visit the security research center.