Report: Adoption by Banks Will Drive Biometric Authentication Boom
June 4, 2015
Biometrics will be the predominant method banks use to authenticate their customers by 2020, according to a U.K. consultancy. Goode Intelligence predicted that by the end of 2017, more than one billion users worldwide will access their banking services via biometric systems. For web-based e-banking services, the report’s authors expect financial institutions to use a combination of face and voice authentication solutions to fulfill their KYC and AML obligations. In Biometrics for Banking; Market and Technology Analysis, Adoption Strategies and Forecasts 2015-2020 the authors said growth in the adoption of biometrics in the banking industry is being driven by the proliferation of mobile devices with built-in biometric support, the emergence of authentication standards from groups like the FIDO Alliance and the overall rise in fraud and identity theft. The trend is good news for companies in the biometric authentication space, according to the report, which will see significant growth in the short term.
“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.”
Other trends in the biometrics industry the report said to expect are a tighter integration between biometric solutions and behavioral analytics to root out fraud, that regional differences around the globe such as the state of mobile adoption or the presence of a mature national ID system will affect adoption of biometric authentication and that regulators will begin to specifically suggest biometrics as one of the factors in any multifactor authentication requirements.