“Biometric banking is a reality”
Hosted by SWIFT
May 11 2015
Dave Birch (Consult Hyperion)
Rick Swenson (USAA Bank)
Greg Williamson (MasterCard)
Keith Gold (CSFI)
The arrival of biometrics in the mass market is as much about convenience as it is about security – and is much to be welcomed. A couple of UK banks are already in the field. In particular, NatWest is using Apple’s TouchID for its phone app, and Barclays is trialling voice identification.
So it’s here – which means that we all could be logging into our mobile banking apps with some form of biometric in a year’s time. If so, what are the implications for banks and other financial institutions?
A case study is USAA Bank (based in San Antonio, Texas) – a bank that is well-known for the innovative use of new technology.
Earlier this year, American Banker called USAA’s adoption of biometrics a “tipping point”. Why? Because it provides the bank’s customers with the option of using PIN, Face (“blink-and-in”) or Voice to authenticate a mobile banking application. It means a customer can log in to his/her account simply by looking at a mobile phone – perfect for the “selfie” generation but equally appealing to baby-boomers who are fearful of forgetting a PIN. Current stats indicate that:
- over 180,000 USAA customers are using biometrics for authentication;
- the average time to verify with biometrics is just two seconds; and
- 80% of its customers prefer using one of the biometric options to the 4-digit PIN option.
Phew… This round-table will focus on the applications of these developments and on the implications that they will have for customers.
The CSFI’s Research Fellow, David Birch, will give a quick introduction to the potential impact of biometrics, and then we will hear from:
- Rick Swenson, the USAA executive responsible for its Fraud Operational Excellence and Strategic Initiative, who will share USAA’s experiences and explain why its approach has been so successful;
- Oran Cummins, the senior vice president for MasterCard Labs Technology, who will give an international perspective on the use of biometrics in the financial payments sector; and
- Keith Gold, formerly with IBM Banking and Financial Services Europe, will talk about the importance of biometrics in the “usability toolkit” needed to meet the needs of an ageing demographic.