Growing Instances of Fraud Drive Adoption of Biometrics in Banking and Financial Services, According to New Report by Global Industry Analysts, Inc.
San Jose, California (PRWEB) March 07, 2014 -- Follow us on LinkedIn - Defined as the process of automated identification of individuals based on their biological and behavioral traits, biometrics is increasingly finding application in banking and financial services institutions across the world, primarily to offer protection against fraud. Impact of fraud can be both direct and indirect, with monetary losses of fraud constituting only a small element of its overall effect on society. Traditional authentication systems in this context used in various banking applications are becoming vulnerable and less reliable, thereby spurring the adoption of new-age security systems like biometrics. Growing instances of IT security breaches are also encouraging deployment of various biometric solutions.
Instances of information security breaches, including malware and virus attacks, spam, Trojans, and organized cybercrime have been increasing over the years, due partly to the lethargic approach adopted until now by financial organizations towards information security. While extensive use of Internet has exposed information assets of various organizations to external security breaches, security threats from within the enterprise are also rising. The need to sustain customer trust, particularly in view of the transition towards online services, is fuelling the need for security solutions such as biometrics.
Growing need for establishing ATMs the world over is also benefiting implementation of biometric ATMs due to their relative ease in use and increased security levels. Efforts focused on developing standardized approaches for safe, interoperable and efficient components for biometric identification and authentication systems are also fostering implementation of the technology on a wider scale. For the banking sector, biometrics holds the promise to increase the speed of transaction processing, enhance value-added services, offer security, improve customer service, and enable fulfillment of various legal requirements regarding real time information and data transparency.
Fingerprint recognition is the most widely used biometric technology in financial services sector owing to its high accuracy rates and low-cost. Other technologies such as voice biometrics are also gaining ground globally, with several banks deploying such systems to benefit from enhanced security, convenience and versatility offered by the modalities. Know-Your-Customer (KYC) requirements legislated as part of anti-money laundering regulations worldwide is additionally pushing up the need for financial institutions to track and monitor borrowers. Biometric ATM cards, Biometric ATMs, and biometric signature verification on credit cards for verification of electronic signatures for authenticating online payments are all expected to gain in popularity in the coming years.
As stated by the new market research report on Biometrics for Banking and Financial Services, Asia-Pacific represents the largest as well as the fastest growing market with a CAGR of 38% over the analysis period. Though still in emerging stages, biometrics is increasingly finding application in financial services and banking institutions in various Asian countries. The technology is being used to enhance customer service and more importantly for identity verification and for preventing identity theft in financial transactions. Driven by the need to expand reach of financial services in rural areas, government efforts in emerging nations to bring uneducated masses into the banking community will additionally drive gains in the market.
Major players covered in the report include 3M, AllTrust Networks, Cross Match Technologies Inc., Cyber-SIGN Inc., Digital Persona, Fujitsu Frontech North America Inc., Ingenico SA, Lumidigm Inc., Morpho, Nuance Communications Inc., Precise Biometrics AB, and Voice Commerce Ltd., among others.
The research report titled “Biometrics for Banking and Financial Services: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, drivers, and other strategic industry activities of companies worldwide. The report provides market estimates and projections for all major geographic markets including the US, Canada, Japan, Europe (France, Germany, UK, and Rest of Europe), Asia-Pacific, and Rest of World.
For more details about this comprehensive market research report, please visit – http://www.strategyr.com/Biometrics_for_Banking_and_Financial_Services_Market_Report.asp
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.
Global Industry Analysts, Inc.
Telephone: 408-528-9966
Fax: 408-528-9977
Email: press(at)StrategyR(dot)com
Web Site: http://www.StrategyR.com/
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Raghu Gopal, Global Industry Analysts Inc, +1 408-528-9966, [email protected]
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