News

Biometrics are all the rage among leading ATM distributors and banks

August 2, 2016

Consumer electronics are old news, an ABI Research study found. The hype is moving toward biometric banking technologies specifically targeted at millennials, and leading payment card players and agile startups alike are integrating this technology into smart cards, ATMs and mobile payment services, the report said.  

"This market shift is occurring faster than initially anticipated, with global revenues for biometric banking technology expected to top $4 billion by 2021," said Dimitrios Pavlakis, industry analyst at ABI Research. "North America alone accounts for almost $8 billion in payment card fraud, a statistic that suggests the need for greater transaction security."

The benefits to biometrics integration are numerous, the report found. The technology is used to improve banking security and authentication as well as ease of transaction, increase security and enhance user experience.

Mastercard already put facial biometrics (selfie payments) in place and Japenese tech companies Fujitsu and Hitachi developed a vein identification program for ATMs to recognize the user's unique vein system. According to the report, Atom Bank is using an online-only solution, and Diebold and Eyelock partnered to create a smartphone-based iris recognition ATM technology.

Downsides still exist, however. Security is the most troubling issue, Pavlakis pointed out. "Security flaws are always a concern, and even more so when customers' biometric data is involved," Pavlakis said. "Banks and banking service providers will need to assure their clients that their data is being stored and managed efficiently."