Data Driven Insight for Biometrics, Digital Identity & eIDs

Biometrics, Mobility, Digital Identity, ePassports, eIDs, Automated Border Control, eGates, Secure Documents...

Biometric Musings from @Money2020

Posted: October 24th, 2018 | Author:

Biometrics are Mainstream in the Exhibition Hall, But Attendees Have a Limited Understanding

While it was a given in the exhibition hall, that biometrics are an integral part of digital transaction security in the financial services realm, the solutions offered are still far ahead of the customers’ per

ceived needs and in many cases, basic understanding. In a world where digitally-based fraud is exploding, the lack of urgency around implementing truly “human” identity-centric solutions in the broader financial services community remains disaapointing and somewhat unsettling.

The level of questions posed to the two extremely well attended biometric panel sessions on Sunday afternoon clearly indicated that while biometric market interest is soaring, market education remains a key consideration for the industry. Even in the sophisticated world of fintech, where there seems to be a new conference every week, the overall understanding of what a biometric is, how it works, what the real and distorted data management and privacy issues are, and how to differentiate between on-device and cloud-based solutions remains elusive to far too many.

“Frictionless” Customer Experience is the Holy Grail! (NOT)
Biometrics were near universally heralded in the Exhibit Hall and many panel sessions as a key enabler of the “frictionless” customer experience – the apparent aim of nearly every vendor and financial services provider at Money2020.  However, upon reflection as part of a deeper and more complex conversation about risk-based models, desired levels of customer feedback, and differentiating between identification and verification and on-device and cloud, most players admit that eliminating ALL friction is not really the goal. In fact, the real gaol is to determine and apply “the appropriate level of friction” based on the type of transaction, the value, and the risk involved.

It was easy for me to question my way with vendors hawking their “frictionless” wares to arrive at a clear understanding of what they actually meant. The typical conference attendee, however, would likely not have been able to make these distinctions and would be left with, at best, a misguided understanding of the true role for, and power of, biometrics.  Again, even though it will make industry insider heads explode, I have just three things to say about this state of affairs: “Market Education, Market Education, and Market Education!”

Big Banks Are Slow Movers while Mid-level Banks are Not Convinced they have a Problem Biometrics Can Solve

Large banks and financial services organizations seem to clearly recognize they have a fraud and related identity problem that biometrics can help address. They appear committed to change, but incremental change that does not dramatically impact the overall market infrastructure, their position in it, or their existing physical and digital infrastrucure.

Meanwhile, mid-level banks that are structurally more flexible and therefore able to incorporate biometric-based identity solutions more easily and reap genuine rewards, remain skeptical. It is not clear if this is just typical financial services resistance to change, the inability to recognize the depth of the challenge they face, or just overwhelm in the face of technology that they are unfamiliar with.

It took forty years for ATMs to become mainstream – likely for similar sets of institutiaonl reasons. Unfortunately, established financial services organizations – large and small – don’t have the luxury of waiting forty years for the fintech revolution to take hold. Innovation is spreading across developing economies where urgency is high and barriers to adoption are either low or simply do not exist.  In many of these locations biometric-based solutions are enabling the secure delivery of financial services to those previously unable to access them – the worlds’ more than 2 billon unbanked.  These markets are living laboratories for biometric solutions that may very well radically reshape the global financial services market and potentially disrupt the existing major players out of their positions of dominance, or even existence.

Even as GDPR and PSD2 secure and reshape the European financial services ecosystem opening the door for digital innovation, the United States market, where many global leaders are based, seems ill prepared for the level of transformation and associated disruption that is happening now in the financial services realm.

Time for a New Name!

When this innovative event – the Granddaddy of fintech conferences – was launched in 2012, 2020 seemed a lifetime away. Given the pace of technology evolution, an eight year window for transformation seem appropriate. Now with four global events on three continents, the still nascent state of the burgeoning fintech market, and the end of the decade upon us, perhaps it is time for a rebranding? Money2030 here we come ….

#biometric #biometrics #payments #mobile #mobility #money #mobilebiometrics

Related Content

Acuity makes the case for Cloud biometrics in “Taming the Authentication Beast: Simplifying and Enhancing the Customer Journey with Biometrics in the Cloud.” Download the whitepaper at www.acuity-mi.com/CloudFS.php.

Biometric transaction forecasts and analysis of the mobile biometric market are available in Acuity’s “The Global Biometrics and Mobility Report” at www.acuity-mi.com/GBMR_Report.php

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C. Maxine Most is the Principal and Founder of Acuity Market Intelligence (http://www.acuity-mi.com), an emerging technology strategy and research consultancy with a proven record of accurately anticipating biometric and digital identity market trends. Follow Maxine on twitter @cmaxmost.

Contact: Acuity Market Intelligence +1 303 449 1897, [email protected]


Filed under: Biometrics, Disruption, Fintech, Market Development, Market Insight, Mobile Biometrics, Payments | No Comments »

Taming the Authentication Beast: Simplifying and Enhancing the Customer Journey with Biometrics in the Cloud

Posted: September 19th, 2017 | Author:

Financial service organizations that want to reap the benefits of the digital revolution to improve security, reduce friction, lower costs, and attract the most desirable customers, will adopt biometric authentication in the Cloud as the foundation for enhancing and securing the customer journey.

Biometrics are a global phenomenon that financial service players ignore at their peril. Acuity forecasts that by 2022, 5.6 billion biometric mobile devices will secure 1.37 trillion biometrically-enabled payment and non-payment transactions. On-device biometrics may improve the user authentication experience, but the big financial service payoff will come from Cloud-biometrics that also provide secure, reliable identity assurance.

Pushing biometrics to “the edge” of the financial service ecosystem, e.g. smartphones, simplifies authentication and reduces friction, but on-device biometrics can only link a user to a specific device,. Cloud-based, or server-side, biometrics simplify authentication and reduce friction while linking an individual to a Unique Verifiable Identity (UVI) that is device and platform independent, and provides a non-revocable user, not device-based, audit trail for each transaction.

 

Concerns about Cloud biometric data being vulnerable to theft and misuse have been sensationalized. Best practice approaches to deploy solutions purpose-built to secure biometrics, address data storage and management concerns. This includes anonymous storage, disaggregating biometrics from other Personally Identifiable Information (PII) – including templates from multiple biometric modalities – and installing anti-spoofing and presentation attack countermeasures.

Biometrics in the Cloud support continuous authentication via behavioral biometrics, and enable multifactor ’escalation,’ or step-up capabilities, that introduce biometric challenge and response protocols based on dynamic risk assessments. Cloud biometrics should therefore be viewed as more than just a means to enhance the customer journey, but as a path to creating an intelligent, identity-centric platform that addresses authentication risk across the entire financial service enterprise.

Acuity makes the case for Cloud biometrics in our latest whitepaper  Taming the Authentication Beast: Simplifying and Enhancing the Customer Journey with Biometrics in the Cloud.” Download the whitepaper at www.acuity-mi.com/CloudFS.php.


Filed under: Behavioral Biometrics, Biometrics, Disruption, Financial Services, Market Development, Market Insight, Mobile Biometrics, Mobility, Payments, Smart Devices, Smartphones | No Comments »

Mobile Biometric Market Forecast to Exceed $50.6 Billion in Annual Revenue in 2022

Posted: September 14th, 2017 | Author:

Acuity Market Intelligence released our updated forecasts for the mobile biometrics market. The potential for consumer use of mobile biometrics dwarfs any previous application of biometrics.

  • Annual revenue from biometrics embedded in mobile devices, biometric app downloads, and biometric transactions authentication are projected to grow from $6.5 billion in 2016 to $50.6 billion in 2022 reflecting a CAGR of nearly 41% with total forecast period revenues exceeding $193 billion.
  • More than 1.9 billion biometrically enabled mobile devices will be in circulation by the end of 2017. This will grow to an unprecedented 5.5 billion devices by 2022 as this massive, globally available platform remains the driving force behind worldwide biometric adoption.
  • By 2020, biometrics will be standard on 100% of the nearly 2.4 billion mobile devices sold each year.
  • By 2022, 98% of all mobile devices will be biometrically enabled generating 16.7 billion biometric app downloads and more than 1.37 trillion payment and non-payment mobile devices transactions that require some level of biometric authentication.

As the Equifax debacle and fallout goes viral on social media, and Apple once again redefines the biometrics landscape with the introduction of 3D FaceID on the iPhone, the casualties of inadequate digital security mount and drive demand for better identity solutions.

Mobile biometrics are just beginning to address the digital identity challenge. To date, biometrics have been widely adopted as a convenient PIN alternative for unlocking smartphones. By 2018, the introduction of hardened mobile biometric security and the emergence of Biometrics Identity Service Providers (BISPs) will shift market focus from on-device authentication to Cloud-based, server-side solutions that will begin to replace traditional digital identity schemes altogether.

For detailed forecasts and analysis of the mobile biometric market, preview and purchase “The Global Biometrics and Mobility Report” at www.acuity-mi.com/GBMR_Report.php


Filed under: Behavioral Biometrics, Biometrics, Disruption, Market Development, Market Forecast, Market Research, Mobile Biometrics, Mobility, Payments, Smart Devices, Smartphones | No Comments »

Acuity Market Intelligence’s 2017 Crystal Ball

Posted: January 26th, 2017 | Author:


T
en 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 »

Will Fintech’s Love Affair With Biometrics End Badly For The Global Payment Giants Touting This Match Made In Heaven?

Posted: January 6th, 2016 | Author:

Originally published by findBIOMETRICS.com

GUEST POST: Will Biometrics Displace Global Payment Giants?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

GUEST POST: Will Biometrics Displace Global Payment Giants?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

GUEST POST: Will Biometrics Displace Global Payment Giants?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

GUEST POST: Will Biometrics Displace Global Payment Giants?

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

GUEST POST: Will Biometrics Displace Global Payment Giants?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

GUEST POST: Will Biometrics Displace Global Payment Giants?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 »