Mobile banking has alleviated the inconvenience of having to physically visit a bank during opening hours. Customers can now conduct transactions from anywhere, at any time, using their smartphone or computer. Although only a quarter of US seniors over 75 use mobile banking, 95% of customers born after 1995 and 86% of all customers, use mobile banking frequently.
The adoption of smart banking will only increase as technology improves, and banks must continue to innovate to make banking stress-free and convenient for customers by offering seamless, easy-to-use services and customizable offerings.
One of the most important updates to smart banking is the introduction of facial recognition identity verification for improved security and services to customers. In 2017, Apple launched Face ID as a new login feature 20 times more secure than fingerprint identification. As customers became more familiar with the technology, banks moved to leverage this convenient and secure method to provide faster, safer service. Of approximately 11,000 financial institutions in the US, 15% to 20% currently use selfie photo imaging in combination with document verification to authenticate users, and this number is only expected to increase.
This article discusses how banks can use facial recognition technology to improve the user experience for identity verification.
Smart banking is a quick and secure way to conduct transactions. It employs smart technology to rid the system of existing pain points, creating a streamlined, customized experience. Facial recognition identity verification for smart banking can provide ease of service, security, adaptability, and a better customer experience.
We live in an on-demand era, where everything from grocery shopping to doctor’s visits can be done from the comfort of home. In comparison, going to the bank can seem like an archaic task. When we do shop in person, even the way we pay has become faster and easier: we tap cards instead of inserting them or wave phones and smart watches like magic wands to make payments. Consumers want the fastest, most convenient purchase processes, but don’t want to sacrifice security.
With facial recognition, consumers have speed, convenience, and security. Not only is the identity verification process quick and easy, but it relies on one-of-a-kind facial vectors that can’t be fooled like other digital payment methods. In addition, consumers will never need to be caught out by a forgotten wallet ever again.
The financial industry still struggles with fraudulent activity, even as it bolsters digital, smart banking offerings. Despite the increased adoption of EMV chips on cards, and robust password creation policies, customers still fall victim to scams that end up costing banks a lot of money. During the height of the pandemic in 2020, when digital transactions skyrocketed, identity fraud losses reached $56 billion in the US.
The use of facial recognition technology, as a second or even third form of identity verification, greatly reduces the chance of identity fraud and helps to combat the constant threat of scammers.
Neobanks, or digital-only banks, are well placed to disrupt the US banking industry. In fact, 77% of millennials say they will likely switch to digital-only banks, revealing young people’s willingness to change banks if their needs are not met. By 2025, the number of neobank and traditional bank account holders are expected to be equal.
Financial technology is constantly evolving and smart banking must continue to improve as well. Finding creative ways to leverage available technology, such as facial recognition for KYC (Know Your Customer) verification, will support the growing needs and expectations of modern consumers.
Ultimately, technology is only as good as its usefulness to the consumer. For example, instead of multiple authentication forms to open a new account or request a money order, it would simply be easier if a face could be used for KYC verification. Whether it’s a wallet left at home or a lost bank card, there are many reasons a consumer might prefer to use facial recognition for a transaction.
Furthermore, the facial recognition biometric KYC process allows banks to improve the customer experience. Matching existing customer preferences with authentication data provides a more tailored online experience. Customers will appreciate the personalized experience and be more likely to stay with the bank long-term.
The best facial recognition solutions for smart banking provide the above benefits and cover a variety of use cases, from identity verification at ATMs and mobile banking to identity verification for customer service. Fortunately, FaceMe® eKYC fulfills all of these requirements – and more.
FaceMe® eKYC is the premier facial recognition solution for the banking industry. It uses facial recognition and an assortment of SDKs (Software Development Kits) for eKYC (electronic Know Your Customer) and other fintech use cases, such as mobile banking, digital onboarding, and remote customer service. With optimization for various hardware and support for multiple platforms, you can integrate it with numerous devices in the banking environment.
FaceMe® eKYC is not just adaptable for multiple use cases, but is also extremely precise, with an accuracy rate of 99.83% and top rankings in both NIST FRTE 1:1 and 1:N. It’s iBeta ISO/IEC 30107-3 Level 2 compliant anti-spoofing technologies also assures customers protection against biometric fraud. Customers will enjoy the quick speed of FaceMe®’s facial recognition technology, increasing their satisfaction with the overall banking experience.
Banks will need to stay updated with the latest financial technology to beat their competition. Facial recognition may not be mainstream financial technology just yet. But once consumers understand how facial recognition can allow them to enjoy safe, secure, and quick transactions, they will have better experiences and overall satisfaction. FaceMe® eKYC is specially designed to help banks quickly implement identity verification through facial recognition and move from regular to smart banking to meet customer needs and exceed expectations.