How facial recognition is safe for banking?

Digitisation is gradually and rapidly taking over the banking processes. Facial recognition technology has gained traction in various industries, including banking, primarily due to its potential to enhance security and improve user experience.

Facial Recognition System (FRS), as an added security modality, adds to customer convenience as well. Facial recognition relies on unique biological characteristics of individuals, such as facial features, which are difficult to replicate or falsify. This makes it a robust form of biometric authentication, enhancing security compared to traditional methods like passwords or PINs, which can be stolen or forgotten.

Facial recognition can be integrated as part of a multi-factor authentication process, where multiple layers of security are required for access.  Unlike static methods like passwords, facial recognition can provide continuous authentication throughout a banking session. The system can periodically verify the user's identity, reducing the risk of unauthorized access in case the session is hijacked.

Banks and financial institutions implementing facial recognition technology must comply with strict data protection regulations, such as GDPR (General Data Protection Regulation) or CCPA (California Consumer Privacy Act). Compliance with these regulations ensures that user privacy is protected, and sensitive biometric data is handled securely.

Facial recognition biometrics is the AI-powered technology that enables identification of a person by accessing their facial features. Biometrics have been a part of the banking processes for a long time. Facial biometrics offer promising possibilities of a momentous revolution in the banking sector. It has applications in diverse banking processes to elevate transaction security, process lifecycle, and customer success.

As per a report by 2028, the value of transactions executed by digital wallet will reach USD 16tn. However, the online fraud is a growing concern as more people manage their finances digitally. Phishing scams, malware, and data breaches can put your hard-earned money at risk.

The fact is, Not everyone is comfortable managing their finances online. Security concerns or lack of familiarity with technology can create resistance to adopting online banking.

Dr. Deepak Kumar Sahu, President & CEO, VARINDIA