Security of customer's identity is the primary goal as far as financial institutions such as banks, insurance companies, and Fin-tech are concerned. Eliminating passwords and PINs from the industry and introducing other secure means of validating on boarding customers can help the industry from various frauds such as identity theft, data breaches, money laundering, and terrorist financing, etc.

Many major institutions have prone to severe cyberattacks and financial crimes that not only compromised the confidential data of millions of users but also subjected to harsh regulatory fines and other penalties.

Therefore, to comply with the obligations of regulatory authorities to implement security in the online world and protect the identities of customers as well as to retain business reputation, there is a dire need to take dynamic security actions in place to combat fraud.

Revolution of Fin-tech Industry

With the advent of technology and digitisation, the Fin tech industry is growing with much more splendid financial services. The investment value in the industry is amounted to $112 billion in 2018.

With the popularity of Fin-tech in the way it is revolutionising financial sectors, there s a dire need to take appropriate security measures to combat fraud this industry is prone to. Fin-tech allows users to excess all their financial data at one platform. This would help them make better financial decisions regarding savings, expenditure, and investments.

A report says that about 70% of banking executives say that it is a great opportunity for banks o collaborate with Fin-tech sector to efficiently share customer data and provide financial services.

Security initiatives could be the integration of an online biometric system that verifies each digital identity verification based on unique biological traits. Biometrics ensures identity verification in real-time, does not compromise user experience and serves as an additional security layer into the system, ultimately contribute to combat fraud risks associated with malicious identities and bad actors.

Biometric Authentication Reforms Fin-tech Industry

Introducing biometric authentication reforms the Fin-tech industry as it ensures authorised access over confidential organisational and user data. Following are the forms of biometric authentication system that can be used in Fin-tech practices to ensure data privacy and security, both at the user as well as administrator end:

Iris Scanning

The unique pattern of human iris differentiates between individuals and is now sued s specification ins smartphones where users can verify their identity through iris scanning. In the same way, the Fin-tech industry can ensure security by identifying the iris pattern of customers.

Voice Recognition

Through voice recognition technology, vocal waves are identified that are unique and help identify individuals through varying frequency. This type of biometric verification is categorised as behavioural biometrics.

Face Recognition

Using unique facial features an identity can b authenticated. Facial recognition technology identifies features such as chin type, face shape, the distance between yes, face contour, etc.

Based on these biological features an identity is verified. Another feature that is mostly used in this technology is liveness detection that ensures the physical presence of identity at the tike of identity verification.

In this feature, through AI and ML algorithms, minor facial movements like eye blinking, etc. the individual is identified o make sure that at tike of verification, a user was physically present and is not using any printed image instead.

To conclude, other than fingerprint scanning, the Fin-tech industry can make use of newly introduced biometrics to ensure security and identify an individual even with biometrics modalities.

By combining two or more biometrics, an identity can be verified. With such features, the Fin-tech industry will be growing at much faster pace while eradicating online frauds and financial crimes.