Smartphones have already allowed us all to have secure banking apps at our fingertips. It’s now completely normal to check our balances at any given time and transferring money takes moments. The smart technology has changed how we live our daily lives, changing our shopping habits and even the essence of how we bank. Over 80% of retail banking customer’s interactions take place through self service channels. Now newer more advanced technology is advancing mobile banking even further.
Facial recognition has come on leaps and bounds, and now some financial institutions are using it for what’s be dubbed as ‘selfie pay’. The technology allows you to pay for things online using a photo you take of yourself and will be matched up to one you previously saved on file. There will be no need for passwords, confirmation codes or pins. 92% of test subjects preferred the ‘selfie pay’ to traditional passwords and 83% of those who tested the software said that it was ‘more secure than passwords.’
Another new development comes in the form of fingerprint and voice recognition. HSBC are planning to use voice and fingerprint recognition in place of pins and password to log people into their online banking. HSBC UK’s head of retail banking and wealth management, Francesca McDonagh has stated that ‘this is the largest planned roll out of voice biometric security technology in the UK.’ This will speed up the logging in process for customers accessing their online banking ‘using the most secure form of password technology, the body.’ The technology works by cross-checking 100 unique identifiers including behavioural features such as speed, cadence and pronunciation as well as physical aspects including the shape of larynx, vocal tract and nasal passages.
In world of getting physical cash, card skimming is a massive problem. More than $2 billion in losses (and rising) at ATMs around the world; with 33 percent of all fraud incidents linked to skimming crime; and 98 percent of all losses resulting from skimming crime. However cardless ATM’s are trying to combat this problem. By removing the card from the process, you take away the fraudsters ability to skim, and you also speed up the process for the customer in the process. To access your money you order cash via your mobile and then scan a code on your phone into the ATM, which then gives you your money.
There have been concerns about security when it comes to the reliance we have on smartphones. It throws up questions about what would happen in a cyber attack or if our phones were lost or stolen? At present mobile security is high with systems built in to ‘lock’ or ‘wipe’ the phone contents remotely, activated by the owner. Also, according to the banks that are adopting the new tech, they are actually more secure than traditional security systems, so in fact there is less reason to worry. The advances in technology present a great opportunity for mobile banking and it will be interesting to see what develops next.