Some of the 21st century’s fastest-growing technologies include biometrics and fintech. The combination of the two technologies to enable quick and secure banking transactions for the general public is not something new. However, it is changing as a result of the growing reliance on big data, AI, IoT, and mobile banking. Hackers develop along with technology.

FinTech combines elements of finance and technology. Traditional banks offer fintech services in internet banking, transactions, and mobile payment systems. However, FinTech banks don’t even require a corporate office to offer 100% digital services. They are not regarded as banks because they simply have a licence to manage electronic currency. But in the future, they might be regarded as banks because they can deal with actual money.

FinTech is a popular emerging trend since it can offer more services and more alluring deals. That’s  because it doesn’t have to spend as much money on people and equipment.

Fintech Applications Use Biometric Authentication

FinTech products must provide users with the necessary security protection. Users should take into account the authentication method in addition to secured authentication when thinking about FinTech banks. The most precise, trustworthy, and quick authentication method available today is biometric (both online and offline).

Customers benefit from biometric authentication in two ways.

  •  By protecting their accounts and lowering the risks associated with using a single password,
  • By standardising the authentication procedure across a range of service scenarios.

Fintech security uses biometric identification techniques like voice, iris, face recognition, and fingerprints.

Secured Wallets

Both traditional bank wallets and digital currency wallets, such as cryptocurrency wallets, now frequently use the biometric security method. These wallets are typically accessed using smartphone apps, and without reliable verification methods like biometrics. Biometrics can be used to secure cryptocurrency data stored in any digital or electronic memory.

KYC for Insurance & Banking

Customers can complete their KYC with FinTech banks from any location thanks to biometrics. As a result, it aids both traditional and FinTech banks with online KYC validation. FinTechs can sell insurance without a medical certificate thanks to biometric authentication (if required, they can give their health ID, i.e., biometrically authenticated).

Transaction & Payment Services

As a way to verify online payments, payment systems have begun integrating biometrics. Payment confirmation with selfies and voice commands is the newest payment system fad. Using 3D face recognition technology on a smartphone, payment applications can verify their owners by asking them to take selfies. Biometrics like fingerprints, voices, and faces are also employed in multifactor authentication with passwords for transactions.

The article has been published by the editorial board of the Identity Herald. For more information please visit www.identityherald.com