Biometrics to dominate banking methods by 2020

Consultancy group Goode Intelligence has predicted that bank customers will be using biometrics as the predominant method of identifying themselves to access bank services by 2020.

In a new report called “Biometrics for Banking, Market and Technology Analysis, Adoption Strategies and Forecasts 2015-2020”, Goode Intelligence reports that biometric authentication is being adopted across all of the major bank channels and by the end of 2015 some 450 million bank customers will be using biometrics.

Biometric authentication will be used in a variety of bank scenarios, including withdrawing cash from ATMs, proving identity when contacting their bank via telephone and authenticating mobile bank apps. A combination of face and voice will also fulfil Know Your Customer (KYC) and Anti-Money Laundering (AML) measures when accessing web-based eBanking services.

The firm writes that biometrics for banking is already a mature industry with plenty of successful implementations around the world, with millions of bank customers already using their biometrics on a daily basis to provide secure convenient authentication.

“There is a growing desire from the banking industry to adopt convenient methods to verify the identity of their customers and this is creating the conditions to drive the adoption of biometrics in banking even higher.”

“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. The adoption for banking purposes is a major contributor to this growth and we are forecasting that by 2020 it will contribute US$5.5 billion in revenue for companies involved in delivering biometric systems to the banking industry.” said Alan Goode, author of the report and founder of Goode Intelligence.