Banking and financial services are some of the most prominent victims of online frauds and identity theft cases. Every year, banks and their customers have to sustain losses of nearly 2 billion USD due to identity theft. Fake insurance claims, bank accounts opened with forged documents and availing financial services based upon stolen identities are common in the banking and finance industry.
Online identity verification services were once hailed as the ultimate savior for banks and financial services companies. But hackers developed methods to defraud banking organizations and financial services companies despite these measures. The introduction of Biometric identification provided the banking industry with a more secure alternative to conventional identity verification services.
What is biometric identification?
Biometric identification entails the identification of a person’s biometric features that are unique for every human being in the world. Most of these biological features can be easily detected by technology that is available in the market. Fingerprint scans, iris scans, and facial verification are the most common biometric authentication methods to verify the identity of users.
Earlier, it was harder to conduct biometric verification remotely because of the non-availability of equipment required to carry out biometric identification but the introduction of fingerprint scans and iris scans in smartphones strengthened the case for even offsite biometric identification.
Future of Biometric identification
Biometric identification has a bright future if stats from popular IT research and major tech publication is to be believed. According to Global Market Insights predictions, biometric authentications will increase by 22 percent in the next 6 years. Fingerprints and iris scans are considered to be the lead runners for the biometric verification banking and finance industry. But unfortunately, it creates problems for users that don’t have smartphones with an iris scan or fingerprint scan. This creates a question about a uniform biometric identification process without making a compromise on client services and synchronized business practices.
Facial verification provides an alternate mode of biometric verification for KYC software. Banking and the financial industry can take help from a KYC verification service that offers facial verification because it enables not only the remote verification process but is also cost-effective for customers as well as end-users.
Biometric identification for Banks
Biometric authentication in banks can go a long way in ensuring that no person with fake identity documents can open a bank account, whether in the form of the in-branch account registration process or via a remote account opening service.
Facial verification will check for liveness detection that is particularly helpful in the remote account opening systems. It will make sure that the person will be present in front of a webcam and is not using a static facial image of another person to get registered. When in a physical bank branch, a potential applicant for a bank account will perform biometric authentication that will capture their facial image and match it with the one present on their official identity document.
Biometric identification for financial services
Financial services companies are also haunted by frequent scammers or online identity theft cases. False identity claims lead to insurance claims and monetary frauds that make financial companies sustain losses ranging in millions of dollars. Moreover, handling funds from financial criminals or those received through money laundering channels can also invite undue regulatory oversight and monetary fines. Biometric identification performed through facial verification can enable financial services companies to identify proclaimed offenders that show up frequently on blacklists and sanctions lists. All in all, an online identity verification service that offers KYC verification through biometric identification is ideal fraud prevention and identity theft protection tool for financial services companies. Shufti Pro is one such online identity verification service that offers KYC verification and biometric identification services to its clients. All the KYC solutions are developed using Artificial Intelligence which makes facial verification reliable for its customers. Real-time verification results are available for every one of its services, including biometric identification. With proof of verification available in Shufti Pro Back Office, customers of this identity verification service will be able to screen the verification results with the help of pictorial as well as a video stream to ascertain the identity of the user. “