Posted: January 26th, 2017 | Author: cmaxmost
Ten Top Trends for Biometrics & Digital Identity
The following are Acuity’s prognostications for how the markets for Biometrics and Digital Identity will develop in 2017. Over the next few weeks, I will elaborate on each one. Stay tuned …
#1: Behavioral biometrics on smartphones AND associated privacy issues and PII concerns will go mainstream.
#2: Iris biometrics breakout as smartphone availability drives consumer acceptance up and price points down.
#3: Security impact and liability implications of PII via Iot begin to sink in with Enterprise Executives.
#4: Cloud based biometrics are recognized as critical Infrastructure for global digital payments and commerce platforms.
#5: Link between digital identity, smartphones & mobile & stationary #smart devices begins to be monetized
#6: New monetization models for digital identity emerge, shifting power from commercial enterprises to consumers.
#7 Secure mobile smartphone credentials drive infrastructure development with migration from tests and pilots to deployments.
#8: Many fintech innovators are swallowed by large BFSIs thwarting their impact on industry transformation.
#9: A handful of fintech standouts committed to disruption emerge as potential threats to the status quo.
#10: Biometrics and digital identity begins to be understood as a force for social justice, equity, privacy, and accessibility.
Filed under: Biometrics, Disruption, e/mCommerce, Market Forecast, Market Insight, Market Research, Mobility, Payments, Smart Devices | No Comments »
Posted: January 6th, 2016 | Author: cmaxmost
Originally published by findBIOMETRICS.com
2015 was a banner year for fintech, mobile payments, and biometrics. Nearly 100 smartphones are currently shipping with native biometric authentication and nearly every major bank, payment processor, identity broker, handset manufacturer, and leading tech player is hyping their mobile biometric offering. Just a mere 2 years ago, even after Apple’s groundbreaking introduction of the iPhone 5s, biometrics was routinely dismissed as unreliable, frightening, fringe technology—more the stuff of science fiction then the realm of daily consumer experience. However, by the close of 2015, weekly announcements plugging new smartphones, banking apps, and payment players integrating biometrics were routine.
Nowhere was this more apparent than at the Money20/20 Conference in October 2015. More than 10,000 financial service, payment and high-tech industry leaders converged on Las Vegas to hobnob with scores of fintech wannabes and digital money analysts and advocates all clamoring to display expertise and insight into the mainstream adoption of biometrics as an enabler of mobile commerce.
Market legends from Visa and MasterCard to First Bank and Chase, along with Samsung, Google, Facebook, and more too numerous to list were tripping over each other to embrace biometrics as mainstream technology. A year earlier at the 2014 edition of Money20/20, keynote attendees were entertained with a gag biometric video The Future of Dough-PayByAss. But by 2015, as the event’s major sponsors all touted biometric offerings, the technology was clearly no longer a laughing matter and well beyond the crude musings of a satirical video.
Biometrics Embrace Encouraging and Confounding
Therefore, as we enter 2016 with biometrics hype gaining steam, a deep breath and some broader perspective is warranted. While the palpable biometric buzz evident throughout the past year in product announcements, on and offline articles, interviews, and analyses, as well as at events such as Money20/20, has certainly elevated biometrics’ prestige, the seemingly endless discussions of biometrics are, in reality, both encouraging and yet somewhat confounding.
Encouraging in that the unprecedented depth and intensity of interest and media coverage reflects a genuine mainstream commercial embrace of biometrics. This is extremely positive news for a technology industry that has been waiting for more than a decade to break free from its niche application in criminal and civil government markets.
Confounding in that very financial service behemoths, the Citi’s, American Express’s, and First Bank’s of the world, along with the chieftains of payment processing Visa and MasterCard, that are flaunting the ‘newfound’ and wondrous capabilities of biometrics to enable a ‘frictionless consumer experience,’ seem almost willingly ignorant to the inevitable impact biometrics will have on the future of their business.
Two Key Adoption Drivers of Biometrics: PIN/Password Replacement and ‘Stealth’ ID
According to these newfound financial service converts, biometrics is about two things. The first is PIN and password replacement for mobile device and in-app transaction authentication to reduce friction and increase the completed transaction rates. The second is using ‘stealth’ behavioral biometrics; confirming user identity by capturing data on the way users interact with their devices. There are several companies, including BioCatch and NuData, that provide this capability to ‘unnamed major retailers and financial service providers.’ Providers that do not notify their customers that this data is being captured and used to identify them.
Stealth biometric capture has proven historically disastrous for the biometrics industry and it remains unclear what kind of backlash may occur when consumers discover this information is being captured and used without their knowledge or consent. Facebook is currently facing multiple lawsuits in the US and has had to turn-off features in the EU based on its own stealth use of biometric facial recognition.
Beyond these two drivers, the more compelling rational behind the embrace of biometrics by mainstream players may be purely defensive; a means to co-opt potential threats to their core business. Banking, payment, even e-and m-commerce players are embracing biometrics to expand their reach into the ‘disruptive’ world of fintech and insulate themselves from innovation driven disintermediation.
Cloud Based Biometric Disruption
Established financial service players have long depended on the highly technical and highly regulated nature of their business to resist disruption. The emerging mobile economy has fundamentally transformed the marketplace by creating a hyper-connected world where fintech innovation threatens their long-standing market stranglehold. Even as these ‘gatekeepers’ embrace biometrics as a means of retaining market power, they seem to fail to fully grasp its truly disruptive nature, which extends far beyond simple pin and password replacement or stealth risk assessments.
Biometrics is far more than an effective way for payment, banking, commerce, or even social media players to ‘kill passwords’ and reduce consumer ‘friction,’ or a stealth way of gathering Personally Identifiable Information (PII). Biometrics—properly integrated, managed, and applied within a consumer centric identity framework that includes both consumer ownership and control of PII and anonymous identification—may indeed pave the way for eliminating the gatekeepers altogether.
Irrefutable biometric authentication at the point of payment will render much of the existing payment processing infrastructure obsolete. Third party biometric authentication delivered via Biometrics as a Service (BaaS) or more broadly Identity as a Service (IDaaS) will offer far more efficient and cost effective fraud and theft mitigation than today’s dated, bloated, and slow (in digital terms) nearly $2 trillion a year payment processing industry. Cloud-based identity services will radically reduce transaction risk allowing this new class of BaaS or IDaaS players to provide direct transaction authentication at the point of payment near instantaneously at a far lower cost.
21st Century Identity Revolution
The true disruptive potential of biometrics is likely being been overlooked in the mad rush to jump on the biometrics bandwagon. Perhaps it is the result of a limited understanding of biometrics capabilities or perhaps a strategically driven denial. Either way, this misreading of biometrics is the quintessential elephant in the room and may prove ultimately fatal to those who fail to recognize it for what it is.
In much the same way that the 19th Century was the era of the Industrial Revolution, and the 20th Century was the era of the Digital Revolution, the 21st Century is poised to be the era of the Identity Revolution. Identity is more than a characteristic to be vetted or verified. Identity is becoming the organizing principal of the emerging global digital ecosystem. An organizing principal that is poised to transform many global industries, including payment processing, as consumers, citizens, and employees trust biometrics to secure their digital transactions allowing them to regain control over their PII.
Biometric ‘Love Affair’ Gone Awry
Conventional wisdom among biometric naysayers perpetuates a long list of the ‘dangers’ of biometrics Biometrics are unreliable. Biometrics will irreversibly compromise consumer privacy. Biometrics are irrevocable and once compromised forever lost. The mainstreaming of biometrics will be cataclysmic for both the individuals and organizations that adopt them. The embrace of this technology is irresponsible at best, perilous at worst. . . A litany of context-free, myths based on technical misunderstanding and discredited threats.
The real peril, however, of mainstream adoption of biometrics, particularly for players in the payments arena, may come in quite a different package. A $2 trillion industry reliant on antiquated infrastructure and propped up by outmoded risk models being ultimately displaced by the widespread availability of instantaneously biometric identity verification delivered via the digital cloud. Not exactly a match made in heaven!
Filed under: Biometrics, Disruption, e/mCommerce, Financial Services, Market Insight, Mobile Biometrics, Mobility, Money2020, Payments | No Comments »
Posted: August 20th, 2015 | Author: cmaxmost
The global market for mobile biometrics is at the center of a firestorm of converging market forces driving new and complex relationships between identity, commerce, and the indispensable personal mobile devices that more than 6 billion consumers carry with them at all times. The proliferation of these powerful mobile devices within the emerging global ecosystem connecting commerce, community, and consumers has fundamentally changed the way we communicate, work, conduct business, shop, entertain ourselves, interact socially, and now identify ourselves.
Two central themes provide the context for understanding the scope of this massive market revolution:
The first is the transformation and convergence of commerce and privacy as they relate to individual consumer identity. How do consumers navigate this complex, interconnected world ensuring their privacy is protected and their PII is secure while they maintain frictionless access to the information, communities, and the goods and services they want to purchase?
The second is how will enterprises that rely on the accumulation, management, use, and sale of PII evolve or be displaced as this massive global platform based on personal mobile devices disrupts conventional business models? Can businesses based on data aggregation survive the creation of consumer centric ecosystems that transfer data ownership from commercial powerhouses to individual consumers?
This is the framework for evaluating the critical role biometrics has begun and will continue to play as the mobile identity ecosystem is conceived, constructed, and deployed across the globe over the next five years and beyond.
Got your attention? For more register for Acuity’s Mobile Biometrics Webinar: Redefining Digital Identity and Disrupting Global Commerce on Sep 3, 2015 11:00 AM EDT.
The Webinar will draw extensively from Acuity’s latest research report The Global Biometrics and Mobility Report: The Convergence of Commerce and Privacy.
Filed under: Biometrics, Data Driven Analysis, e/mCommerce, Market Insight, Mobility, Payments, Smart Devices | No Comments »
Posted: June 10th, 2015 | Author: cmaxmost
Acuity just released revised forecasts for the mobile biometrics market. Annual revenues from biometrics embedded in smart mobile devices, biometric app downloads, and biometric authentication of transactions are projected to grow from $1.6 billion in 2014 to $34.6 billion in 2020 representing a CAGR of nearly 67% with total forecast period revenues exceeding $117 billion.
Today’s mobile biometrics are primarily a convenience factor; a pin alternative for device, application, and account access, as well as mobile payment authorization. I believe that by 2017, hardened biometric security on mobile devices will begin in earnest and we will see a genuine transformation in identity and commerce and the true end of “the password as we know it.”
The potential for consumer use of mobile biometrics and the associated revenue is magnitudes greater than any previous application of biometrics. This massive, globally available platform will provide an unprecedented opportunity for sustained sensor, software and app based revenue as well as enormous potential for biometric authentication services for high-risk and high-value transactions.
Acuity also projects that by 2020, biometrics will be standard on 100% of the nearly 3 billion consumer smart mobile devices sold each year. With an installed base of 4.8 billion, more than 89% of all smart mobile devices in use will be biometrically enabled. In addition, more than 5.5 billion biometric apps will be downloaded annually, and more than 800 billion transactions that require some level of biometric authentication will be processed on mobile devices each year.
For detailed forecasts and analysis of the consumer mobile biometric market, preview and purchase “The Global Biometrics and Mobility Report: The Convergence of Commerce and Privacy” at www.acuity-mi.com/GBMR_Report.php
Filed under: Biometrics, Data Driven Analysis, e/mCommerce, Market Forecast, Market Insight, Market Research, Mobile Biometrics, Mobility, NFC, Payments | No Comments »
Posted: January 27th, 2015 | Author: cmaxmost
Biometrics in mobile payments, banking, and a host of other mobiles services and applications are poised to transform and accelerate the globalization of mCommerce.
The latest research from Acuity Market Intelligence reveals a mobile biometric marketplace more complex, broadly based, and growing faster than previous forecasts indicate.
Acuity segments the mobile biometrics into three major sectors:
- Biometric Sensors embedded in smart mobile devices: Smart Phones, Tablets, and Wearables.
- Biometric Apps offered directly by biometric vendors, or downloaded to smart devices via mobile service providers such as banks, payment processors, social media sites, retailers, or online identity providers.
- Biometric Authentication for payment and non-payment transactions provided via secure cloud-based services linked to Biometric Apps on smart devices.
Acuity projects that by 2020, global mobile biometric market revenues will reach $33.3 billion annually. This includes 4.76 billion biometrically enabled smart mobile devices generating $6 billion in biometric sensor revenue, 4 billion biometric app downloads generating $20 billion in annual revenues from direct purchase and software development fees, and 825 billion biometrical secured payment and non-payment transactions generating $6.8 billion in authentication fees.
Biometrics are a natural fit for the smart mobile devices we literally hold onto nearly every waking hour. The explosion in the use of smart devices over the past five years, along with anticipated growth over the next five — especially in developing economies where sub $100 smart phones have begun to alter the mobile landscape — will bring biometrics into the daily lives of half the global population. By 2020, 100% of smart mobile devices will include embedded biometric sensors as a standard feature
For more on the mobile biometric market, download your free copy of the NEW Mobile Report Market Brief which previews Acuity market forecast data on mobile biometric smart devices, transactions, and global market revenue (Brief registration required).
And as always, more information about all of Acuity’s research is available at the Acuity Research Page.
Filed under: Biometrics, Data Driven Analysis, Market Development, Market Forecast, Market Research, Mobile Biometrics, Mobility, Payments, Smart Devices | No Comments »