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
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
- Mobile identification via multilayered and multifactor authentication
- Authentication of users using a mobile connected to call centre or website
- Authenticates users on websites using a mobile phone
- Authenticates users without their personal details being transferred to any site
- Multilevel secure identity verification for online forms and onboarding
- Software to automate the identity verification process for financial KYC / AML and other compliance systems
Security of identities
- Electronic signature solution for tablets or signing pads
- Cyber security solution that prevents cyber threats from entering and spreading within the organization
- Storing secure encrypted data in the cloud without exposing decryption keys and thus securing data
- Contact Terence Singh for specifics about any of the solutions mentioned above
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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.