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The most obvious and promising industries for the use of biometric technologies are banking and fintech.
Today we will describe existing technologies, prospects for their development and the benefits contained in their proper use.
The fintech industry is currently developing at a tremendous pace, changing the financial infrastructure and even approaches to doing business before our eyes. At the same time, there are only two key requirements for this industry: increasing the efficiency of the financial system or an individual business and security.
Biometric technologies fulfill both of these requirements and are perfectly combined with the latest advances in fintech. The most obvious area of use of biometrics is the rapid and reliable identification of a client at different steps and in different scenarios of financial interactions.
The second area is ensuring security when working with personal information and financial data. This is also true for all kinds of payment and transfer systems, banking and personal finance, lending, asset and investment management, and, finally, insurance.
The simplest biometrics are used in the fingerprint scanners of modern smartphones and tablets; with their help, you can gain access to the Google Pay and Apple Pay systems.
Many large Russian banks already use biometrics in their mobile applications, both for logging into the application and for confirming transactions (usually instead of confirmations via SMS).
But this is also difficult to call worthy protection - smartphone manufacturers focus on the response speed of the fingerprint sensor, which does not have the best effect on recognition accuracy. The sensor usually only reads part of the fingerprint. And a recent study by scientists from Michigan and the creation of the so-called MasterPrint (a kind of “arithmetic average” print) confirm this.
The international payment system MasterCard has launched in 12 European countries the ability to confirm online purchases using a selfie. Amazon, Uber and even some government organizations in the US are moving in the same direction. Of course, this technology is convenient, but it is not a panacea, especially since you can change a password stolen by hackers, but with your face it will be more difficult.
There is also 3D Secure 2.0 - a new version of the protocol that has received a modified verification procedure. Payment confirmation itself is implemented using various biometric parameters - facial contours, fingerprints, palm vein patterns, etc.
At the same time, up to 95% of total transactions are assigned to the internal risk assessment system, and only in the case of the remaining 5% will the system request a verification code.
HSBC Corporation announced the launch of a voice payment confirmation service, which also cannot be a 100% reliable method of identification.
Ubiquitous mobility has become one of the integral trends for carding, and it is difficult to imagine any new financial application without the use of biometrics, so either sensor manufacturers will have to catch up with carding, or start using additional identification systems other than fingerprints.
An adequate level of protection while maintaining comfort and speed of use can only be provided by a multimodal approach - authentication using several biometric indicators at once.
The weakest and most vulnerable modality is the voice - it is highly dependent on ambient noise and is easily intercepted by third-party technical means.
Similar problems arise when choosing video identification as the only method - the quality of lighting, weather, minor changes in appearance greatly complicate the process and affect the result.
The situation is much better with identification by the pattern of the veins of the palm, a three-dimensional model of the face, by a photo taken in the infrared range, or by the iris, especially when they are superposed for the purposes of monitoring compromise and risk management. The Id-Me platform, for example, allows you to select authentication based on different indicators.
In the Russian Federation, people began to talk especially actively about the use of biometrics after the FINOPOLIS forum - the largest market participants (Bank of Russia, RosFinMonitoring and the Ministry of Telecom and Mass Communications) announced the launch of a pilot project in a number of Russian banks at once.
An undoubted advantage for the banks themselves is additional expansion into the regions, because if there is an adequate identification and authorization system, the client will be able to fully use the bank’s services from any city, or even country.
If, after testing in several banks, the project is considered successful, the Ministry of Telecom and Mass Communications will be able to create a NBP (national biometric platform), and the Central Bank will be able to significantly expand the range of financial services provided using biometric verification methods for a credit institution’s client in remote service channels.
Here, more than anywhere else, it is important to ensure data security and reliable authentication at all stages of interaction. This is not difficult to do, as we mentioned above, you just need to select “strong” modalities and provide multimodal verification.
Let's look at the areas in which RecFaces technologies can speed up, optimize and secure the use of financial services.
During the process of credit or insurance scoring, Id-Me can provide reliable and fast verification of the client, and reconciliation can also be carried out against a stop list in identification mode. When scanning a passport, a biometric facial image verification rule will help verify the authenticity of the document, exclude similar people and the use of someone else's document. For any remote financial transactions, multimodal biometric verification will be the key to a convenient and safe transaction.
Identification process:
Using external equipment installed on various client applications, a biometric sample (BP) of a specific person is created. Various equipment can be used (retinal scanner, fingerprint scanner, camera, microphone, etc.), including to create a multimodal client profile.
The client user interface (UI) and client services communicate with the web server and send the BO through it to the Id-Me platform.
The BO is placed in an isolated storage module using depersonalization mechanisms.
When a request is received in the Biometric Sample Processing Module, the following steps are performed:
The anti-compromise control module starts the pipeline for checking BO and BS for falsification, substitution, non-compliance, replacement of persons, etc. The pipeline can include mechanisms that operate based on various criteria (analysis of context, human behavior, optical distortion, etc.).
The recognition and search module receives a request to search for BS in the reference BS database of people’s profiles:
The user identification result is loaded into the client UI or hardware actuators.
It is important to note that this entire multi-step process provides highly reliable results and takes only 1.5-2 seconds.
What practical benefits does an organization receive when using the Id-Me multimodal platform?
RecFaces productively cooperates with financial organizations; in the near future we will be able to write here about successful cases in the banking sector and carding. However, biometrics is not limited to financial security; it can be no less successfully and effectively used at transport infrastructure facilities, and we are planning the next material about this.
Today we will describe existing technologies, prospects for their development and the benefits contained in their proper use.
The fintech industry is currently developing at a tremendous pace, changing the financial infrastructure and even approaches to doing business before our eyes. At the same time, there are only two key requirements for this industry: increasing the efficiency of the financial system or an individual business and security.
Biometric technologies fulfill both of these requirements and are perfectly combined with the latest advances in fintech. The most obvious area of use of biometrics is the rapid and reliable identification of a client at different steps and in different scenarios of financial interactions.
The second area is ensuring security when working with personal information and financial data. This is also true for all kinds of payment and transfer systems, banking and personal finance, lending, asset and investment management, and, finally, insurance.
The simplest biometrics are used in the fingerprint scanners of modern smartphones and tablets; with their help, you can gain access to the Google Pay and Apple Pay systems.
Many large Russian banks already use biometrics in their mobile applications, both for logging into the application and for confirming transactions (usually instead of confirmations via SMS).
But this is also difficult to call worthy protection - smartphone manufacturers focus on the response speed of the fingerprint sensor, which does not have the best effect on recognition accuracy. The sensor usually only reads part of the fingerprint. And a recent study by scientists from Michigan and the creation of the so-called MasterPrint (a kind of “arithmetic average” print) confirm this.
The international payment system MasterCard has launched in 12 European countries the ability to confirm online purchases using a selfie. Amazon, Uber and even some government organizations in the US are moving in the same direction. Of course, this technology is convenient, but it is not a panacea, especially since you can change a password stolen by hackers, but with your face it will be more difficult.
There is also 3D Secure 2.0 - a new version of the protocol that has received a modified verification procedure. Payment confirmation itself is implemented using various biometric parameters - facial contours, fingerprints, palm vein patterns, etc.
At the same time, up to 95% of total transactions are assigned to the internal risk assessment system, and only in the case of the remaining 5% will the system request a verification code.
HSBC Corporation announced the launch of a voice payment confirmation service, which also cannot be a 100% reliable method of identification.
Ubiquitous mobility has become one of the integral trends for carding, and it is difficult to imagine any new financial application without the use of biometrics, so either sensor manufacturers will have to catch up with carding, or start using additional identification systems other than fingerprints.
An adequate level of protection while maintaining comfort and speed of use can only be provided by a multimodal approach - authentication using several biometric indicators at once.
The weakest and most vulnerable modality is the voice - it is highly dependent on ambient noise and is easily intercepted by third-party technical means.
Similar problems arise when choosing video identification as the only method - the quality of lighting, weather, minor changes in appearance greatly complicate the process and affect the result.
The situation is much better with identification by the pattern of the veins of the palm, a three-dimensional model of the face, by a photo taken in the infrared range, or by the iris, especially when they are superposed for the purposes of monitoring compromise and risk management. The Id-Me platform, for example, allows you to select authentication based on different indicators.
In the Russian Federation, people began to talk especially actively about the use of biometrics after the FINOPOLIS forum - the largest market participants (Bank of Russia, RosFinMonitoring and the Ministry of Telecom and Mass Communications) announced the launch of a pilot project in a number of Russian banks at once.
An undoubted advantage for the banks themselves is additional expansion into the regions, because if there is an adequate identification and authorization system, the client will be able to fully use the bank’s services from any city, or even country.
If, after testing in several banks, the project is considered successful, the Ministry of Telecom and Mass Communications will be able to create a NBP (national biometric platform), and the Central Bank will be able to significantly expand the range of financial services provided using biometric verification methods for a credit institution’s client in remote service channels.
Here, more than anywhere else, it is important to ensure data security and reliable authentication at all stages of interaction. This is not difficult to do, as we mentioned above, you just need to select “strong” modalities and provide multimodal verification.
Let's look at the areas in which RecFaces technologies can speed up, optimize and secure the use of financial services.
During the process of credit or insurance scoring, Id-Me can provide reliable and fast verification of the client, and reconciliation can also be carried out against a stop list in identification mode. When scanning a passport, a biometric facial image verification rule will help verify the authenticity of the document, exclude similar people and the use of someone else's document. For any remote financial transactions, multimodal biometric verification will be the key to a convenient and safe transaction.
Identification process:
Using external equipment installed on various client applications, a biometric sample (BP) of a specific person is created. Various equipment can be used (retinal scanner, fingerprint scanner, camera, microphone, etc.), including to create a multimodal client profile.
The client user interface (UI) and client services communicate with the web server and send the BO through it to the Id-Me platform.
The BO is placed in an isolated storage module using depersonalization mechanisms.
When a request is received in the Biometric Sample Processing Module, the following steps are performed:
- Receiving BO from storage;
- Checking for BO quality (photo quality, distance, illumination, blur, head rotation angles, integral quality indices, level of extraneous noise, etc.);
- In case of poor quality, the process is interrupted with a corresponding message;
- If the quality is satisfactory, the BO is converted into a biometric template (BS);
- The BS is placed in a storage module using depersonification mechanisms.
The anti-compromise control module starts the pipeline for checking BO and BS for falsification, substitution, non-compliance, replacement of persons, etc. The pipeline can include mechanisms that operate based on various criteria (analysis of context, human behavior, optical distortion, etc.).
The recognition and search module receives a request to search for BS in the reference BS database of people’s profiles:
- The recognition and search module receives the BO/BS of the current operation.
- The biometric verification function is implemented.
- The similarity measure is returned and the value authenticated/unauthenticated as the result.
The user identification result is loaded into the client UI or hardware actuators.
It is important to note that this entire multi-step process provides highly reliable results and takes only 1.5-2 seconds.
What practical benefits does an organization receive when using the Id-Me multimodal platform?
- Convenient and secure biometric authentication of clients in remote service channels;
- Biometric mechanisms for client verification during the lending process;
- Convenient and secure biometric authentication of personnel, control and confirmation of certain types of operations and employee presence;
- Effective modern biometric means of combating internal and external fraud;
- Ways to manage customer service prioritization;
- The required combination of biometric modalities to successfully solve business problems.
RecFaces productively cooperates with financial organizations; in the near future we will be able to write here about successful cases in the banking sector and carding. However, biometrics is not limited to financial security; it can be no less successfully and effectively used at transport infrastructure facilities, and we are planning the next material about this.
