Report: Banks increasingly turning to biometrics

Research by a financial consultancy has found that banks will increasingly turn to biometrics over knowledge-based authentication methods and other techniques.In interviews with 26 fraud executives from 19 North American financial instututions that hold more than US$50 billion in assets, Aite Group found that mobile and biometric tech are dominating thought on identification.Six of the interviewed banks will enable biometrics for mobile banking login by the end of 2015, and more than half will decrease use of knowledge-based authentication technology over the next two years.The research group also found “Various forms of behavioural analytics continue to see strong growth, with the majority of banks having at least one solution in place and many having a second in either production or pilot.”Julie Conroy, research director, Aite Group, wrote, “While this [behavioural] technology is sometimes classified as biometrics, it is not subject to the same onerous laws as traditional biometrics, therefore Aite Group categorises them as a form of behavioural analytics.”Michel Giasson, CEO of behavioural biometrics firm NuData Security said: “Tracking and analysing behavioral biometrics helps us understand how a user truly acts – and in turn, helps us verify good users from bad ones.”As Aite outlined, identifying and baselining good customer behaviour, then identifying deviations from this, is a point of emphasis for executives looking to advancing their behavioural analytic capabilities.”

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