Biometric technology solutions are revolutionising FinTech offerings

By Puja Sharma

Financial technology companies are among the main proponents of biometric technology due to the benefits they offer to their customers and the security of their data. The following sections address some of these factors, according to the electronic identification blog.

Biometrics is the precise recognition of individuals based on their inherent physical or behavioral traits. In other words, it involves identifying patterns that are unique to each person, such as the face, the voice, the fingerprint, or the heart rate, and using them to identify users of services of all kinds.

By analyzing a person’s physical or behavioral traits, biometrics can identify him or her precisely. The ability to identify users of services involves identifying patterns that are uniquely identifiable to them, such as their face, voice, fingerprints, or heart rate, and using them to identify them.

They are ideal for protecting sensitive operations such as remote financial transactions, as they cannot be imitated. FinTechs use biometric technology solutions to increase customer privacy while providing innovative and practical solutions for the day-to-day operations of their businesses and employees.

AI, machine learning, and new methods of identifying individuals are helping to prevent and reduce crimes such as identity theft and money laundering, thereby allowing FinTech companies and other companies operating in the financial sector to meet the security and KYC requirements across the financial sector.

How FinTechs can benefit from biometrics

With the growth of FinTech in the last decade, technology companies have offered innovative products and services with a preference for remote banking solutions, sometimes based solely on app-based customer service. The use of biometric technology is essential in neo banking and digital banking for establishing customers’ identities remotely.

Overall, there are three main uses of biometric technology in the FinTech sector:

Contracting: signing of contracts through prior verification of identity.

Onboarding: initial verification of a customer’s identity in registering them as a customer by registering their face.

Authentication: access to web platforms, mobile applications, intranets, branches as a second identification factor.

As obvious as it is, one cannot fail to mention the advantages of biometric technology in retail payment systems. Given the increasing use of mobile phones as a quick payment system, the use of voice, face, or fingerprint patterns allows counteracting the risks of mobile phone use, such as unintentional payment, simply and effectively.

FinTech and biometrics go hand in hand

Banks can operate 24/7 with FinTech, enabling a 24-hour service. It makes tedious tasks, like paying bills or reviewing personal finances, easier for the public, particularly millennials and centennials. To accomplish this, biometric technologies in banking must be easy and quick to use, and they must ensure biometric security.

There is no question that biometric technology has advantages for FinTech companies, employees, as well as for users. Biometric technology has undoubted advantages for the smooth running of the Fintech business, for the employees, and for the users, such key advantages are:

• Facilitates the customer relationship through a unique user experience that enhances customer satisfaction.
• Reduces employee workload by streamlining processes.
• Enhances remote and office security.
• Prevents crimes such as identity theft and money laundering.
• Keeping documentation digitally reduces paper waste.