Innovation comes in many forms. It makes the world around us look better, speed up and be more useful for companies, consumers and communities. Biometric technologies have been around now for some time, but recent technological developments are driving significant adoption across new use cases, especially in banking & payments.
We spoke with banks and consumers across the world, and we have identified a wealth of opportunities for banks which are embracing biometrics. From turning up the style to increasing revenue, here are some of the ways banks look set to benefit.
Ease and style
75% of bank respondents see fingerprint biometrics because the most user-friendly and slickest security method, whilst providing the best UX. As shown by the high rate of adoption in the smartphone market, consumers rate this method as well. Not having to remember or make use of a PIN code is a key benefit, especially for the older segments that are at risk of being left behind within an increasingly digital and cashless world.
What's more, banks and fintechs are offering innovative new card designs. From vertical orientation to gold inlays and metal cards; biometrics would be the perfect accompaniment to increase the style as its coolness factor is really a key driver for consumer adoption beyond the ease of use and security.
A premium offering
When you are looking at roll-out, 56% of our surveyed banks plan to introduce biometric payment cards like a paid service for premium customers. This offers the opportunity to increase revenue from payments, in addition to adding a point of differentiation against competitors.
Increasing the need for transactions
As the motivation behind the trials like NatWest's in the UK and Société Générale in France shows, having the ability to remove the cap on contactless payments is a huge selling point. 79% of banks we spoke to cited payment caps as the main limitation of contactless cards today. Biometric payment cards provide a secure solution to 'scrap the cap' and realize the true potential of contactless. The feedback from ongoing pilots also shows an increased transaction value when using biometric cards.
Getting one step ahead of competitors
100% of the banks we spoke to are aware of biometric payment cards, however only 24% consider themselves fully informed. For those banks willing to invest in research and prioritize biometrics within their innovation roadmap, the opportunity to overtake competitors can there be.
Addressing customer security concerns
Contactless security is one area where banks and consumers disagree. Despite only 57% of banks considering security to be the main issue around contactless, this is consumers' primary concern. Biometric-authenticated payments across mobile and card are a highly effective solution to help build consumer confidence. Recent research by Gemalto, a Thales company, showed that 86% of respondents believe biometric payment cards tend to be more secure than traditional Chip and PIN.
Unifying the journey
Another benefit of introducing biometrics is to bring harmony towards the UX across mobile, online and in-store. As the focus on the customer journey indicates over the past few years, delivering clunky and frustrating shopping journeys is really a sure-fire way to lose customers and revenues. This is seen by respondents as particularly important for addressing the younger and more tech-savvy consumer segments, seeing the latest cool innovative biometric card like a great companion to mobile wallets along with other payment devices.
An opportunity must be acted on
It's clear that biometrics provide a lot of potential when it comes to the innovation roadmap for banks. Increased revenue avenues; alleviating consumer concerns around contactless security; improved UX-these are achievable in the short to mid-term.
What happens next is within banks' hands.