Institutions are bringing innovations within their operations by introducing touchless digital banking. These upgrades are fueling the growth of Financial Technology (FinTech) companies, with criminal threats surging simultaneously. Easy access to bank accounts, remote transactions, and insufficient Anti-Money Laundering (AML) checks further pave the way for criminals. Forging documents, creating synthetic identities, or hacking into login information is an easy task for cybercriminals.
FinTech companies need to bring biometric recognition technology to enhance security without expanding customers’ convenience and frictionless operations. They should replace complex identification checks and multi-factor authentication with behavioral/biological analysis. This way, FinTech companies can ensure hassle-free funds management while limiting fraud risks. This blog entails how biometric security systems make way for FinTech companies to secure growth.
Biometric User Authentication – An Ally for FinTech Companies
FinTech companies require high levels of security and accuracy compared to the rest of other industries as they face the most challenges. Synthetic identity fraud, money laundering, and account takeover are prevalent criminal threats within this industry. With advanced tools at their disposal, cybercriminals easily hack passwords and breach financial records. Furthermore, these risks increase the vulnerability of legitimate customers while exposing FinTech companies to AML regulatory scrutiny.
Biometric recognition systems come with a set of behavioral and biological analyses that are sure ways to restrict criminals’ access. With its tools such as facial verification, fingerprint analysis, voice recognition, iris/retina scans, gesture examination, real-time presence assurance, and liveness detection, AI-powered IDV solutions safeguard FinTech companies against fraud attacks. Biometric recognition enables institutions to simplify their digital onboarding process by reducing friction. Furthermore, customers can avail of contactless financial assistance with advanced security.
The FinTech industry is all set to cross $213 billion market value by 2024. Companies need to bring in biometric identification checks for suspicious activities to ensure risk-free growth. Hence, FinTech companies can stay ahead of criminal intentions with countermeasures in place. Biometric recognition solutions further provide ongoing monitoring of customers to predict and prevent unforeseen consequences.
Integrating AI-powered biometric user authentication is driving upgrades within FinTech companies in the form of easy customer data management and access. Customers can perform and authenticate any transaction by enrolling their facial traits. Furthermore, biometric recognition for consent verification further detects liveness to ensure customers’ presence while carrying out any financial activity.
Biometric Identity Verification Promises Secure Growth for the FinTech Industry
FinTech companies are increasing their efforts toward ensuring a secure digital banking environment. Since digitization is bringing upgrades and technological shifts, this industry is replacing its operations with touchless financial assistance. In wake of this, biometric authentication solutions are playing their part by enhancing security and preventing cybercrimes.
Criminals are employing several advanced techniques, such as spoofing attacks, deepfake attempts, and the use of 2D/3D masks to trick biometric identity verification. Similarly, by creating duplicate facial feature masks, they authenticate transactions. To deter these malicious attempts, FinTech companies require more efficient IDV solutions. With solutions like advanced biological and behavioral analysis, biometric recognition services leave less room for cybercriminals.
- Fingerprint Recognition for Authentic Account Log-ins
AI-powered biometric recognition solutions are leveraging additional security to bank log-in processes. Where customers were creating complex passwords and undergoing multi-factor authentication, they could now scan their fingerprints to access their financial accounts. While cybercriminals place sophisticated efforts to hack login details and take over accounts, biometric ID verification draws a restriction line in their way.
With the number of compromised passwords rising by over 64%, FinTech companies require more accurate, efficient, and robust biometric recognition solutions. With fingerprint analysis tools in place, customers can avail more secure mobile banking options.
AI-powered biometric recognition solutions further streamline the log-in process. Moreover, Apply Pay and several other industries such as Google Payments are already using biometric recognition systems to safeguard electronic payments.
- Facial Feature Verification for Touchless Transactions
FinTech companies are integrating facial verification technology to manage, screen, and validate online payments. During these upgrades, criminal activities are also experiencing a spike. Hacking passwords, stealing PINs, and breaching mobile phones’ security are exposing FinTech companies to serious repercussions. However, with biometric recognition solutions in place, customers can validate transactions and access financial details by simply scanning their facial features.
Conclusion
Traditional banking trends have undergone massive evolution ever since digitization took over. Remote identification for performing transactions, biometric recognition to authenticate financial activities, and ongoing screening for monitoring post-onboarding activities is further pacing up advancements within FinTech companies. In all these upgrades, this industry is facing an upsurge in cybercrimes which demands more robust countermeasures. Hence, biometric recognition solutions are the FinTech companies’ result-driving options.