LOMBARD, Ill.—A new report indicates that very few consumers are utilizing fingerprint biometrics as an added level of security when they log into mobile banking, even as many indicate they are interested in using the technology.
Indicative of just how recently fingerprint identification technology has come to mobile banking, Raddon’s National Consumer Research shows that just 3% of all consumers are currently using the technology.
Owners of the iPhone 6 smartphone are significantly more likely to report using the technology than other smartphone owners, the research shows.
“Reflecting the potential appeal of the technology, 17% of all consumers are ‘extremely to very likely’ to use the mobile banking login method,” said Pat Bator, Raddon senior market and product development analyst, in the latest Raddon Report. “Smartphone owners who use a mobile banking service and iPhone 6 smartphone owners are significantly more likely to do so in the future than other consumer groups.”
Raddon’s National Consumer Research additionally asked consumers to indicate their preferred method (password or fingerprint) to initialize and activate their mobile banking service, given the amount of security provided and ease of use of each method.
Password IDs
“The research shows a quarter of all consumers would prefer fingerprint identification, with iPhone 6 smartphone owners significantly more likely to prefer fingerprint identification than other consumers,” said Bator.
A fifth of all consumers would prefer to use password identification, while most consumers (55%) do not designate a login preference.
“Perhaps more important to mobile banking app developers are those consumers who own a smartphone and currently use a mobile banking service,” said Bator. “These consumers are almost evenly split between a preference for fingerprint identification and password identification; 42% of all smartphone owners who use mobile banking prefer fingerprint identification and 47% of this same group prefers password identification.”
Not Cure-All
A biometric application such as fingerprint identification is more secure than user ID and password, but biometrics should not be considered a security cure-all, noted Bator. Financial institutions who have adopted or are moving to adopt fingerprint identification technology for their mobile banking services are taking a multi-authentication approach, layering fingerprint identification technology on top of their user ID and password security protocols, he said.
“This approach allows mobile banking users to access certain features – checking transaction histories and viewing account balances – via the touch identification function, but requires additional identification (user ID and password) to conduct more detailed transactions like transfers and payments,” Bator said.
Mobile payments are the main driver behind the need for faster authentication speed, and ultimately biometrics.
“When biometric technology becomes linked to trusted payment applications such as Apple Pay, Android Pay and Samsung Pay, a mobile commerce and point-of-sale environment will ultimately emerge,” said Bator. “As fingerprint identification and other biometric applications become more mainstream – and more fully prove themselves in the eyes of the financial services security community – user IDs and passwords may become relics of the past.”