Digital banking has increased while shutting down physical branches. As of 2021, several largest UK banks including HSBC, Barclays, Santander, and Halifax closed over 300 branches altogether. Despite this technological shift in the banking sector, it is falling prone to various criminal threats. Old-school authentication methods such as PINs, OTPs, and passwords are becoming an easy target for cybercriminals.
With the global digital banking market to cross $30.1 billion by 2026, service providers need to bring in more efficient authentication methods. As criminals can easily fake identities, biometric recognition places restrictions in their way. By deploying facial, fingerprint, and voice recognition along with liveness, AI-powered solutions enhance security. This blog covers ways biometric ID-based liveness detection safeguards the finance sector.
An Overview of the Digital Banking – Applications of Liveness Detection
As pin codes, passwords, and single-factor authentication are no longer enough to protect customers from cybercrimes, the banking sector needs to integrate better biometric screening solutions. By using spoofing attacks and bypassing identification checks using synthetic identities, it has become alarmingly challenging for banks to identify these attempts. Therefore, these financial institutions need to implement more strict security measures for preventing fraud attempts.
AI-powered biometric recognition solutions provide liveness detection and facial verification that leverages additional layers of security to the digital banking process. These services drive more speed, accuracy, and better user experience while ensuring compliance with KYC/AML regulations. Biometric user authentication helps online banks to ensure customers are present at time of onboarding and are not mere imposters.
By analyzing gestures, hand movements, texture of images, scanning facial features, and detecting liveness, biometric screening technology mitigates chances of fraud. AI-powered services identify criminals using 2D/3D masks, voice changers, or other such ways to illegitimately create bank accounts in minimal time. Biometric security solutions further provide the following;
- Ensure the presence of customers
- Cross-verification of information
- Replaces passwords with facial features
- Mitigates chances of hacks and data breaches
- Ongoing monitoring of client’s activities
- Multi-Factor Authentication (MFA)
- Real-time and instant identification
Biometric Identity Verification: Result-Driving Solutions for Digital Banking
As criminals are becoming more sophisticated while having advanced tools at their disposal, the digital banking sector also needs to bring in efficient preventive measures. By employing robust digital onboarding solutions, it can create layers of authenticity. Due to the high risks of money laundering, identity theft, and other criminal activities, regulatory bodies are placing strict requirements in place. As per guidelines, digital banking sector needs to restrict fraudsters from creating an account in the first place.
The digital banking sector needs to integrate efficient biometric recognition solutions to counter criminal intentions while keeping customers’ convenience intact. With its services like liveness detection, AI-powered digital onboarding tools detect signs of fraud attempts in time. Biometric security solutions further provide the following benefits to the digital banking sector;
Biometric security solutions do not require hard and complex methods for integration, however, digital banking services providers can make it a part of onboarding. By using API, they can make these technologically advanced identity checks part of the account creation process.
Where the website or app requires Personally Identifiable Information (PII) prior to onboarding, they can also ask for a real-time selfie. Later, biometric security systems analyze it for liveness detection, background checks, and facial verification. AI-powered solutions are way easier to integrate than hiring manual verifiers and experiencing human errors.
Enhances Customer Experience
Biometric recognition provides a user-friendly experience to customers opting for digital banking. All they need to do is upload a video or selfie by using their mobile camera or webcams. The system displays instructions to help customers undergo a simple and quick biometric identity verification process. In the first step, users will have to fit their faces within the frame displayed on the screen. Secondly, they need to rotate their head as per the guidelines provided on screen.
With simple, hassle-free, and instant verification, biometric security-driven liveness detection elevates customer experience. Ultimately, the digital banking sector can provide convenience without compromising security of users. AI-powered biometric security systems combine convenience with accuracy to protect users from external criminal breaches.
In this modern era, digital banking is mastering tremendous growth but can not leave ensuring security behind. Therefore, to provide convenience along with secure transactions, biometric screening provides robust identification checks. With solutions like liveness detection and facial verification, AI-powered services help the banking sector better combat fraud attempts. Furthermore, biometric ID cards and facial recognition eliminates the need for additional equipment and human interpretation. Hence, this technology makes digital banking a more reliable solution.
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