NEWS

Biometrics pointing to opportunities for banks

Innovation comes in many forms. It makes the world around us look better, work
faster and be more useful for companies, consumers and communities. Biometric
technology has been around now for some time, but recent technological
developments are driving significant adoption across new use cases, especially in
banking and payments.
Recently, the company Fingerprints conducted an interesting survey amongst banks
and consumers around the world. The study reveals a variety of opportunities for
bank institutions introducing biometric technology. From raising the level of
convenience to increasing revenue, here are some ways banks can benefit from
new technologies.

Ease and style

75% of bank respondents see fingerprint biometrics as the most user-friendly and
slickest security method, whilst offering the best UX. As shown by the high rate of
adoption in the smartphone market, consumers rate this method as well. Not
having to remember or use a PIN code is a key benefit, especially for the older
segments that are at risk of being left behind in an increasingly digital and cashless
world.
What’s more, banks and fintechs are bringing out innovative new card designs.
From vertical orientation to gold inlays and metal cards; biometrics are the perfect
accompaniment to ramp up the style as its coolness factor is a key driver for
consumer adoption beyond the ease of use and security.

79% of banks cited payment caps as the main limitation of contactless cards today.

Increasing the value of transactions

As the motivation behind the trials like NatWest’s in the UK and Société Générale in
France shows, being able to remove the cap on contactless payments is a big selling
point. 79% of banks cited payment caps as the main limitation of contactless cards
today. Biometric payment cards offer a secure solution to ‘scrap the cap’ and
release the true potential of contactless. The feedback from ongoing pilots also
shows an increased transaction value when using biometric cards.

75% of bank respondents see fingerprint biometrics as the most user-friendly and
slickest security method, whilst offering the best UX.

Getting one step ahead of competitors

100% of the banks we spoke to are aware of biometric payment cards, however
only 24% consider themselves fully informed. For those banks willing to invest in
research and prioritise biometrics in their innovation roadmap, the opportunity to
overtake competitors is there.

A premium offering

When it comes to roll-out, 56% of our surveyed banks plan to introduce biometric
payment cards as a paid service for premium customers. This offers the
opportunity to increase revenue from payments, as well as adding a point of
differentiation against competitors.

Addressing customer security concerns

Contactless security is one area where banks and consumers disagree. Despite only
57% of banks considering security to be the main issue around contactless, this is
consumers’ primary concern. Biometric-authenticated payments across mobile and
card are an effective solution to help build consumer confidence. Recent research

by Gemalto, a Thales company, showed that 86% of respondents believe biometric
payment cards are more secure than traditional Chip and PIN.

Biometric-authenticated payments across mobile and card are an effective solution to
help build consumer confidence.

Unifying the journey

Another benefit of introducing biometrics is to bring harmony to the UX across
mobile, online and in-store. As the focus on the customer journey has shown over
the past few years, delivering clunky and frustrating shopping journeys is a sure-fire
way to lose customers and revenues. This is seen by respondents as particularly
important for addressing the younger and more tech-savvy consumer segments,
seeing the latest cool innovative biometric card as a great companion to mobile
wallets and other payment devices.

An opportunity needs to be acted on

It’s clear that biometrics offer a lot of potential when it comes to the innovation
roadmap for banks. Increased revenue avenues; alleviating consumer concerns
around contactless security; improved UX…these are all achievable in the short to
mid-term.

From entering in the office or home with fingerprint based access control system,
to the anti-theft car system, the capabilities of biometric technology are infinite. As
we wait to see how and whether banks will take advantage of all these benefits, you
may want to look at our biometric solutions.

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