Businesses now utilise various identity verification processes to eradicate fraud from their firms. The number of increasing financial thefts calls for more sophisticated ways to confront them. There are many verification processes utilized by businesses based on their needs and convenience. Any enterprise that wants to sustain itself in the market always adopts efficient technologies to make its system more secure and convenient for its users. Biometrics is the technology used by organizations to verify their clients.
As far as verification processes are concerned, advanced and the most authentic process used by businesses nowadays is biometrics. Through this technology, companies can verify identities in real-time and can also eradicate fraud in the system.
Conventional ways of verifying customers were insufficient. After performing them, businesses still were facing identity theft and other related fraud. Manual processes also employed the services of humans which included chances of human error in the process. Customers also used to visit the offices, which was a tiring process for them also. But as the verification process is done digitally, it has reduced the chances of error in them.
Biometrics- Advanced Way For Customer Verification
Biometrics is referred to as the process that can verify customers through their physical and behavioral characteristics. Methods like how the person walks, their unique facial and hand patterns. Once considered a dream, biometrics are now utilized by a number of industries to verify their customers within seconds. With the availability of the internet and smartphones, biometrics is widely used by users to unlock their smartphones, access social apps, and conduct online transactions.
By fulfilling biometrics, organizations can adhere to KYC (Know Your Customer) compliance. Regulatory authorities have developed certain laws for companies to abide by. By complying with these regulations, firms can protect themselves from being a victim of digital fraud.
There are many industries that utilize biometrics for identification purposes. Banks and financial institutes use this system specifically to reduce money laundering and terrorist financing.
Traditional ways of verification in banks used to be very hectic for both the customers and the employees. Users visit the places in person along with their documents. The bank employee would take the ID documents and process the verification methods. Users had to wait for days to get their verification done.
But thankfully, as technology has become more advanced and the manual tasks being replaced with digital ones, the banks can verify their clients with sophisticated modern biometric methods.
Biometrics Used In Banks
- Fingerprint Scanner
It is considered the oldest way in the history of biometrics. People welcomed this technology and adopted it immediately because of its authenticity and the fact that it can be done easily. Mobile phone users also use fingerprinting to unlock their devices. It is the easiest way to get the individual verified.
Biometrics are unique because of the unique nature of the physical or biological characters of individuals. ID documents or any other related thing of consumers can be stolen and thus fraudsters can utilize them for their advantage. But biometrics is one such thing of individuals that can not be stolen. Thus, fingerprinting was widely utilized by banks to provide their customers seamless experience.
- Iris Recognition
It is referred to as the most authentic means of identifying customers. In this biometric, customers are verified based on the unique pattern of their iris. But this is not used on a large scale by banks or any other industry as well. The uncomfortable process that customers have to go through while performing iris recognition, made the method unliked by almost all the users.
- Face Recognition
Widely used facial recognition, it is the most liked biometric method because of the simplicity of the process. Customers can perform facial biometrics in the comfort of their homes. All they have to do is submit an official document and then upload their selfie. The software then does the rest of the work and verifies the customers.
Banks, because of their association with money laundering and terrorist financing, are required to have stringent KYC compliance in their system. By verifying their customers through Know Your Customer regulations, financial institutes can reduce these crimes. Crypto KYC also removes crimes in cryptocurrency that is replacing traditional money. Performing face recognition at the time of the transaction, banks can minimize frauds committed by money launderers.
- Voice Recognition
It is also a reliable biometric method to verify buyers. The voice of customers is recorded and stored in a database. Whenever a fraudster tries to spoof the system by mimicking users’ voices, the system immediately detects it and rather saves the voice of the fraudster forever for detecting it in the future.
The modern way of verifying customers employed by businesses is biometrics. Businesses, especially financial institutes, use biometric verification like face, iris, voice recognition, and fingerprinting to reduce financial fraud.