A+ A A-

Identity Management

Matchi Trend Report - Digital Account Origination

Fintechs have combined innovative biometric Identity management techniques along with data analysis capabilities to deliver enhanced security for the authentication of clients. These include physical biometrics (e.g. fingerprint, iridial scanning) to behavioural biometrics like keyboard recognition and phone behaviour

Identity management in the financial services sector is an increasingly crucial aspect of IT security since the potential losses, both materially and reputationally, can be substantial. In addition, there is the added sanction of regulatory compliance penalties.

In its simplest form, identity management is the authentication (i.e. confirming the identity of a user) and their associated authority (i.e. what access rights they have)

The use of passwords (and, to some extent, signatures) has largely been used as the key enabler of identity management but it has severe limitations in that it could be lost, stolen or replicated. Applying restrictions such as the use of symbols, text type, length etc. have only been incremental improvement.

Biometrics show great promise since they cannot easily be replicated easily (and in some technologies, not at all) - although they have not been regarded as fintech. Biometrics represent the move from “what you can remember to who you are”. However, there are a myriad of technologies that offer strong solution for identity management:

  • Fingerprint – this is the best known technology
  • Iris recognition – patterns in the eye
  • Facial recognition – used in the video recognition software used in internet based banks
  • Vein pattern – analysis of blood vessels
  • Voice biometrics – recognition by voice
  • Heartbeat recognition – measures type of heartbeat

Other types of biometrics have more to do with behavior than physical characteristics, e.g.

  • Keyboard recognition – how you type on a keyboard
  • Phone behaviour – the angle at which you use your mobile phone

The access rights afforded include mainly the access to data (which itself must be secure) as well as the ability to undertake certain types of transactions. Identity management in financial services extends to keeping identities secure from the threat of third party attacks

Some solutions


There are multiple technologies for biometric using freely available scanners that can be integrated in banking systems. However, voice recognition is the only major biometric that does not require a scanner and can be used over the phone or computer.

Authentication and verification

Security of identities

More on Matchi: Matchi is a global fintech innovation match-making firm, since 2013. Matchi has worked with over 100 leading banks and insurance companies (FIs) around the world, and has a database of over 2,500 fintech firms. Matchi provides both a highly curated portal of fintech solutions, as well as bespoke projects for FI clients to source targeted fintech solutions aimed at the FIs focus areas / pain points. The global Matchi team has run Innovation Challenges and Market Scans for multiple FIs around the world, in markets as diverse as Canada, Japan and India, as well as searches in other geographies.

Subscribe to our newsletter  
Contact Us  


Don't yet have a login? Sign up now!

By logging in and using this site you agree to the membership terms and conditions for Innovators OR for Financial Institutions

Cookies make it easier for us to provide you with our services. With the usage of our services you permit us to use cookies. Privacy Statement
Ok Decline