As the backbone of the world’s economy, the financial industry needs to have reliable defenses against cybercriminals. Their monetary nature makes banks and financial technology (FinTech) providers a constant target for fraudsters. Some financial institutions’ reliance on passwords for account protection makes it easy for hackers to steal assets and other confidential information. This is why investing in biometric user identity verification is a must for financial firms in modern times. 

One of the main reasons for adopting biometrics in the financial industry is the increasing need for secure online transactions. With more and more financial transactions being conducted online, there is a greater risk of fraud and identity theft. By using biometric authentication, financial institutions can verify a person’s identity with a high degree of accuracy, which helps to reduce the risk of fraud.

Another benefit of using biometrics in the financial sector is the convenience it offers users. Traditional identity verification methods, such as passwords and security questions, can be easily forgotten or stolen. Biometric authentication, on the other hand, requires a person to physically present themselves to access their accounts, making it much more difficult for someone else to access their accounts.

Biometrics is also being used to improve the customer experience in the financial industry. For example, some banks use facial recognition technology to allow customers to open new accounts or make transactions simply by looking into a camera. This can be much faster and more convenient than filling out paperwork or providing multiple forms of identification.

In addition to its use in online transactions and customer experience, biometrics is also used to improve the security of physical and financial transactions. For example, some ATMs are now equipped with fingerprint scanners requiring users to scan their fingerprints to access their accounts. This helps to prevent fraud and ensure that only the account owner can access their funds.

Despite the many benefits of biometrics, some concerns have been raised about its use in the financial sector. One concern is the issue of privacy. Some people are worried that their biometric data could be collected and used for purposes beyond identity verification. To address this concern, financial institutions can follow strict privacy laws and regulations and implement measures to ensure biometric data security.

If you want to partner with the best ID authentication provider for financial institutions, check out authID. Our Verified™ solutions can provide strong identity assurance, portable identity, and a secure account recovery process. Click here or call us at +1 (516) 778-5639 to schedule a demo today.