LOMBARD, Ill.—Is the day coming when consumers will place the palm of their hand on a scanner before speaking with a teller?
New research from Raddon Financial Group indicates that day may not be far away. The study reveals that consumers would not see the biometric identification step as intrusive, and would welcome the attention the FI is paying to their account security.
“Biometrics technology has been used for many years within government and specialized business sectors. However, the financial services security community may have questioned if consumers would be comfortable using a biometric trait as means of identification or authentication, especially in an in-branch setting,” said Senior Research Analyst Pat Bator in a recent issue of the Raddon Report.
Raddon Research Insights reveals more than 60% of consumers – across all age groups and income levels – are extremely or somewhat comfortable using an in-branch palm authentication biometric security measure, which requires consumers to place their hands on readers to verify their identities prior to making any type of in-branch transaction.
A 'Valuable' Solution
“Is biometric technology necessary in branches – or warranted? Is the technological outlay worth it? Will customers value biometrics as means of identification and security?” asked Bator.
Raddon Research Insights also found that 83% of all respondents would find some level of value – extremely to somewhat valuable – in an in-branch palm authentication security measure if it was offered by their primary financial institution.
“Financial institutions should expect biometrics to become an increasingly important authentication tool to combat identity theft and fraud across all channels – ATM, brick and mortar, and online transactions,” said Bator. “Biometrics Research Group Inc. suggests the use of biometrics within the financial services sector will only continue to grow, and has the potential to reduce operational risks for financial institutions by at least 20% over the next 10 years.”
In addition to raising the bar against security intrusions over a multichannel delivery platform, biometrics can improve the user experience by offering technology in a convenient and unobtrusive manner, said Bator. “Biometrics offers many advantages, but ultimately the decision to employ this technology remains solely in the palm of your hand.”
