Learn the benefits of face-based identity verification in financial services that safeguard customer information as well as secure and ease banking operations.
Finance professionals are constantly battling fraudsters who continually devise new methods to bypass security checks. Even with EMV cards, robust password creation policies, advanced eKYC software, and other security measures, the situation remains vulnerable. According to reports from the Association of Certified Fraud Examiners, the financial services sector ranks among the top three industries most affected by internal fraud, resulting in an average annual loss of $100,000.
With the advent of AI, facial recognition technology has emerged to address these challenges. Administrators can now easily create a surveillance network of AI-powered facial recognition and authentication techniques with sophisticated high-definition cameras that conduct real-time monitoring of bank lobbies, ATMs, vaults, and other sensitive areas of financial transactions. Its easy-to-use advanced monitoring and compliance features are sure to enhance the efficiency of security systems worldwide.
This blog will delve into the workings of face-based authentication and its multitude of benefits.
What is Face-Based Authentication?
Face-based authentication is the technology that identifies a person through a facial image, video, or audio-visual element to assist them in accessing online services, physical settings, and other resources. Device cameras scan the face using sensing technology and biometric algorithms, collecting the unique facial data of each individual. Liveness detection adds an extra layer of security, requiring the user to perform specific tasks like smiling, blinking, nodding, or moving their face during the authentication process. This type of verification boasts a lower chance of inaccuracy. (Also Read – The Pros and Cons of Facial Authentication Technology)
How is Face-Based Authentication Different from Facial Recognition?
Facial recognition systems, extensively used in public spaces, range from observing live footage to recording and storing data without consent from their subjects. In contrast, face-based authentication prompts its users to give their consent before proceeding with the identification process. ( Also Read – Understanding the difference between facial authentication and facial recognition)
Benefits of Face-Based Authentication
Facial authentication currently stands as one of the most robust biometric identification systems. It is more reliable than other identifiers and static images, as these systems are not easily tampered with. In-person verifications can often be replaced with this form of identity authentication.
Commitment to Providing Enhanced Identity Verification
With the face-based authentication system, businesses ensure that only legitimate users can access the content of their online accounts or enter a business facility. Additionally, businesses can use the same face-based authentication to capture biometric data during the registration process and for further authentications.
By implementing face-based authentication systems, banks can offer a significantly higher level of assurance that the individual in front of them is indeed who they claim to be. This ensures the protection of users’ personal information and banking histories. Furthermore, face-based authentication can be automated and, if necessary, manually administered.
Ease of Use
Visiting banks or undergoing multiple layers of security checks could soon become a thing of the past. Issuing identity documents or authenticating users through facial data, along with their other biometric markers such as fingerprints, can greatly reduce operational hassles. Banks can leverage facial authentication and combine it with certified anti-spoofing capabilities to enhance the user experience. With precise mapping of facial metrics, individualizing users becomes much easier, streamlining the processing of banking services.
Quicker Fraud Detection
Identity theft, money laundering, payment scams, and more can be prevented with facial detection technologies. When combined with document verification, facial authentication strengthens eKYC, especially for remote identity verification. Having a facial-authentication system in place to access crucial information about the user signing in can significantly reduce the risk of data leakage. Additionally, with the help of facial recognition, banks can monitor and be promptly notified about defaulters and financial frauds.
Examples of Face-Based Authentication in the Finance Sector
Customer Verification
In today’s world, almost every financial service provider has transitioned online. Therefore, it’s natural for customers to access them from their smart devices. With the implementation of a digital version of “Know Your Customer,” banks and financial services can utilize face-based authentication to verify customer data. This identification system has streamlined the customer onboarding process, and in many cases, completely remote account generation has become feasible.
Running Cardless ATM Transactions
Cybercriminals are constantly devising new methods to hack ATMs. With face-based authentication, banks can replace the use of plastic cards and PINs with a more secure option. Several banks around the world have begun testing facial-authentication solutions. One notable adoption was made by the National Australian Bank in partnership with Microsoft for ATM services.
Use of Facial Authentication For Providing Quick Banking Services
Modern biometric queue management system (QMS) terminals were installed inside bank premises by Sber and some other banks in Russia. With the help of these terminals, bank visitors can efficiently choose their desired services without the need to wait for a bank employee.
Conclusion
In conclusion, facial-based authentication is revolutionizing the way financial services operate. Its reliability, ease of use, and enhanced security features make it a formidable tool in the fight against fraud. As technology continues to evolve, we can expect even more advancements in facial recognition and authentication systems. These innovations will undoubtedly play a crucial role in safeguarding customer information and ensuring the integrity of banking operations.
FAQs
What is facial-based authentication in finance?
Facial-based authentication in finance uses facial recognition technology to verify and authenticate individuals accessing online accounts, banking services, and physical facilities.
How does facial-based authentication differ from facial recognition?
Facial-based authentication requires user consent and often involves liveness detection, while facial recognition can involve capturing and storing data without consent.
What are the benefits of facial authentication in finance?
Facial authentication enhances identity verification, reduces fraud, improves user experience, and aids quicker fraud detection in banking operations.
How does facial authentication streamline customer onboarding?
Facial authentication simplifies the Know Your Customer (KYC) process, allowing remote customer verification and online account generation for seamless onboarding.
How is facial authentication used for cardless ATM transactions?
Facial authentication replaces traditional plastic cards and PINs in ATM services, providing a more secure and convenient option for accessing banking transactions.
