Identification methods that were once science fiction are now being used by banks, and some of the most innovative schemes are not in the obvious technology hot-spots. Wendy Atkins reports.
Not so long ago, the idea of having personal identity verified by fingerprints or iris patterns was confined to the realms of science fiction. Now, biometric technology is being rolled out for a variety of applications, covering everything from government-issued ePassports and identity (ID) cards to securing corporate laptops. The banking sector has made tentative steps using the technology for applications such as staff access control, customer authentication and mobile ATM-access. As new standards emerge, could biometric applications gain further ground in the banking sector?
The list of banks that are using the technology is growing all the time. But many of the most innovative schemes in the past couple of years have not been in technology hot-spots. Instead they have sprung up in countries such as Mexico, where Banco Azteca has deployed a biometric identity-system targeted at the unbanked in more than 1400 of its branches.
Biometric rollout
Digital Persona, which supplied the system’s biometric technology, claims that it is the largest biometric banking rollout out in the world. “The technology enables 75% of Banco Azteca customers to establish and maintain savings and credit accounts for the first time, and it dramatically increases the bank’s potential customer base”, says the supplier.
Other schemes of note include Brazilian bank Banco Bradesco’s 2006 trial of PalmSecure, Fujitsu’s new palm-vein authentication technology to verify the identity of customers using its ATMs.
In the Middle East, Israel’s Bank Hapoalim is using dynamic signature verification technology to authenticate customers. And Saudi Arabia’s Al Rajhi Bank is using biometric ATMs to distribute monthly pension-payments at social-security offices throughout the kingdom.
There have also been some interesting schemes in India. Canara Bank rolled out its first mobile biometric-ATM last year to enable people in rural areas to access banking facilities, while Andhra Bank targeted a similar segment with its launch of mobile biometric ATMs in Hyderabad last year.
Also in 2007, Central Bank in the Indian state of Bihar rolled out AGS Infotech, Wincor Nixdorf Kisan biometric ATMs, which use thumb prints. They incorporate a video-and-voice- animation system and a single-touch application to make it easier for farmers to withdraw money.
The introduction of biometric ATMs supports India’s Reserve Bank’s promotion of financial inclusion by delivering banking services at affordable costs to low-income and other disadvantaged groups.
In Africa, the Bank of Ghana has announced that, as part of the reforms of the country’s national payment and settlements system, it has collaborated with the Ghana Association of Bankers to introduce a biometric smartcard, EZWICH, for paying for goods and services online and offline. It aims to implement the scheme by the end of June.
What about the rest of the world? Europe and the US have been relatively slow in deploying biometric systems for customer-facing applications. However, the macro environment is changing, and this could have an impact on these markets.
People are gradually getting accustomed to the idea of using biometrics. For example, anyone who travels to the US will be familiar with the process of having their fingerprints scanned at border control, and iris-based immigration systems are now used at several major international airports worldwide. The rollout of national eID cards in many European countries has also introduced the subject of biometrics to the population at large.
Progress on standards
Although standards and interoperability issues have been areas of concern, progress has also been made on these fronts. In February, the International Organisation for Standardisation (ISO) published the ISO 19092:2008 standard, which stipulated the security requirements for the implementation and the management of biometric authentication-technology in the financial services industry.
“ISO 19092 offers a valuable international consensus-based tool to the financial industry that will encourage the secure implementation of biometrics as an authentication method within this sector”, says Mark Lundin, chair of the ISO sub-committee that developed the standard.
Science fiction is at last giving way to science fact, thanks to behind-the-scenes work on standards. While banks in some countries such as India are leaping straight to the most up-to-date of technologies, financial institutions in other parts of the world look set to piggy back on the work of governments and other sectors. But it is the development of standards such as ISO 19092 that is going to be a driver for biometric take-up worldwide, says Ariana-Michele Moore, senior analyst at Celent:
“This new standard is an important milestone for biometrics and financial services. Standards are necessary: to protect data, particularly such sensitive data; to ensure systems communicate with one another to promote mass acceptance and use; and to ensure the overall integrity of the technology, so that if one error or compromise were to occur, it would not have a negative effect that spreads throughout the industry.”
