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Japan's FSA proposes standardization of biometric identification systems

March 16, 2005

Daily Yomiuri: Japan's Financial Services Agency has proposed the standardization of biometric identification systems to confirm account holders' identities when they use ATMs.

The agency has begun discussing ways to standardize the biometric authentication system, with a committee expected to issue a conclusion by the end of April.

ATM deployers currently appear to be split into two camps, with some adopting a system that uses veins in the finger for identification and others adopting a system that uses veins in the palm of the hand to identify account holders.

Bank of Tokyo-Mitsubishi has adopted the palm system for use on its ATMs, while Japan Post, Mizuho Bank and Sumitomo Mitsui Banking Corp. have announced their adoption of a biometrics system that reads the pattern of veins in the index finger to identify customers.

Japan Post has approximately 26,500 ATMs, the largest number in the country.

Both systems can be used with ATM cards containing integrated circuit chips, which every bank is now issuing.

The increase in security has raised concerns cardholder's will be unable to use any but their own bank's ATMs to transfer or withdraw money. It is believed these worries may hasten the agency's search for a standardized biometrics system.