Do ATMs need biometrics?

One question that often emerges in the world of ATMs is: do we need additional ways to authenticate customers? One common suggestion is biometrics: in the form of fingerprints, facial recognition or other venues.

David Tente, executive director, USA, Canada Americas ATMIA moderated a discussion around this topic as part of a broader discussion on innovative ATM tech at ATMIA in Las Vegas this week, featuring:

• Stuart Mackinnon, CIO, Cardtronics.
• Michael Diamond, SVP and general manager, digital banking, Mitek Systems.
• Nathan Dent, director, ATM product strategy, Fiserv.
• William Budde, VP, product marketing Hyosung America.

"Most consumers were wary of biometrics, but it's becoming more commonplace with cell phones, Disney wristbands and others. Typically, we don't see biometrics on U.S. ATMs, usually due to misconceptions such as someone stealing your fingerprint," Tente said.

When asked if they saw biometrics becoming a bigger tool, the panelists gave mixed answers. Mackinnon for example pointed out that biometrics simply aren't convenient for customers who are used to cards.

"We have been carrying cards for decades. 95% of transactions are people using cards even though they could use a phone. Until they find it more convenient, we're not going to force people to do it," Mackinnon said.

He also argued that most ATM vendors may not want to go out and add another periphery to their machines.

Budde said that operators are also not doing a good job communicating the benefits of biometrics for customers in the form of fighting fraud, but many customers might not even care, he said.

"We don't do a good job communicating how it fights fraud," Budde said. "And even if we do, they don't care as much as banks."

Diamond said that biometrics need to deliver frictionless experiences. For example, can it tell that it's the customer's voice, face and that they are alive, so that it can fight fraud?

Finally, Dent said that these types of biometrics can benefit the customer. By gathering personalized data on how the customer is using the ATM, the bank can offer more personalized services that they wouldn't normally be able to offer, since ATMs many times cannot detect who is using the device.

Tente also said that customers need to understand that biometrics such as fingerprints will help keep customers more secure, by creating a highly advanced PIN number.

Once customers see the benefit of biometrics, adoption will be easier, but vendors will need to do a better job of both educating customers and overcoming the "convenience" hurdle.