Goode Intelligence issued a new report forecasting that by 2017 there will be more than one billion users accessing banking services through biometric systems.
In its latest report, Biometrics for Banking; Market and Technology Analysis, Adoption Strategies and Forecasts 2015-2020, Goode Intelligence also predicts that by 2020, bank customers will use biometrics as the predominant method of identifying themselves to access bank services. The identification technology is already a mature industry with plenty of successful implementations around the world; millions of bank customers are already using their biometrics on a daily basis to provide secure convenient authentication across every major bank channel.
According to Goode Intelligence, biometrics is being adopted across all of the major bank channels and by the end of 2015 some 450 million customers will be using biometrics in a variety of bank scenarios including:
- Withdrawing cash from ATMs
- Proving identity when contacting their bank via telephone
- Authenticating into their mobile bank app using fingerprint
Using a combination of face and voice to fulfill Know Your Customer and Anti-Money Laundering measures when accessing web-based eBanking services
Growth of biometrics in the banking industry will be accelerated by a number of factors including the arrival of electronic devices with built-in biometric support, the adoption of biometric-friendly authentication standards such as FIDO, the need to combat rising bank fraud and identity theft, the growth of mobile banking and the emergence of wearable banking.
“Banking adoption of biometrics is creating a booming biometrics industry with biometric vendors experiencing tremendous growth on the back of the escalation of consumer-led adoption of biometric authentication,” said Alan Goode, author of the report and founder of Goode Intelligence. “The adoption for banking purposes is a major contributor to this growth and we are forecasting that by 2020 it will contribute $5.5 billion in revenue for companies involved in delivering biometric systems to the banking industry.”
This trend will go far beyond what just one handset manufacturer is doing as well. “This is not just about Apple’s Touch ID and fingerprint biometrics, our analysis of the current and future adoption of biometrics for banking informs us that at least eight separate biometric technologies will be used by hundreds of millions of bank customers around the globe.” Goode explains. “Some, like heart, are at the very early stages of deployment but will play an ever increasingly important role in reducing the burden on bank customers to remember complex passwords and ensure they are carrying a hardware OTP token with them.”
Building on Goode Intelligence’s consultancy engagements with banks assisting them in assessing and choosing the most appropriate biometric system, the report also offers guidance to banks in choosing the most appropriate biometric system to meet their requirements and includes Goode Intelligence’s unique Banking Biometric System Assessment tool.