Are biometrics and tokens the key to seamless and secure banking?
Consumers have adapted to utilizing biometrics in their daily transactions. As banks and financial institutions explore broader expansion, keeping customer experience and security in mind is critical.
Biometrics — like fingerprint, facial, and voice recognition, along with dynamic security tokens — may promise a future of seamless and more secure banking experiences. Recent data highlights growing consumer acceptance of biometrics, with 44% of Americans using them instead of passwords.
There certainly are appealing benefits for both banks and consumers. Biometrics can offer convenience and help defend against susceptible passwords given that 75% of people don’t follow password best practices. And 4% often repeat the same weak passwords. There’s also the prevalence of breaches and phishing scams, with the introduction of AI-generated deepfakes increasing the risk of compromise. These factors continue to push more industries towards innovative authentication methods.
So, is the humble password truly facing obsolescence? It’s certainly promising, but there are concerns. “When it comes to finding more secure ways to authenticate customers, banks have to strike a balance between providing top-notch security and providing a convenient user experience,” Quintin Stephen, global business lead and director for the Authentication Division of Giesecke+Devrient (G+D), told The Financial Brand.
As banks and financial services organizations look toward this transformation, the shift requires careful planning, blending a customer-centric approach with security needs. Here are some key factors to consider.
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