Could biometrics be the key to better customer relationships?

by Maria Hudson, Head of Marketing, Xura

Four months ago, Google launched a pilot test of a new biometric security solution, Project Abacus, also known as Trust API, with "several very large financial institutions." This new technology takes biometrics to a new level.

The API "learns" a device-owner's behavior — for instance, typing patterns, current location, speed and voice patterns, facial recognition — and uses these metrics to authenticate the user.

If the pilot tests go as expected, Google will launch Trust API by the end of the year, adding one more option to the fast-growing number of biometric ID solutions for mobile banking apps.

A growing focus on biometrics-based security inevitably raises the question: Shouldn't banks and independent ATM operators be looking to adopt a better alternative than the 50-year-old, four-digit PIN to authenticate their ATM users' identity?

Beyond the password

Most of us rely on passwords to protect our digital identity. However, passwords are one-dimensional, and given how often we read about data breaches and increasingly sophisticated hackers, it's clear that they don't always provide adequate protection.

Many institutions are encouraging customers to make their passwords more complex or changing passwords regularly in order to increase security, but this still isn't always enough.

In addition, it can be frustrating for the consumer, who has to remember so many passwords across different websites, apps, accounts and services.

By adopting multi-factor authentication methods, such as the use of biometrics alongside one-time passcodes, sent to the customer's mobile device, banks and financial services providers can significantly increase the security of their platforms.

It can also significantly enhance the user experience, which cultivates customer loyalty and can help an FI to retain customers.

Engaging the digital-first consumer

In this digital banking era, customer retention is becoming ever more difficult. Financial institutions today must find ways to engage with a generation of 'digital first' consumers, who use their mobile devices in practically every aspect of their lives, and who rarely, if ever, interact with a live person at the bank's physical branch.

This means that an FI's mobile apps and ATMs must provide the consumer-grade experience customers are used to having in their everyday life.

Consumers have become accustomed to always-on messaging services such as WhatsApp and Facebook Messenger, as well as easy-to-use video capabilities from applications like FaceTime and Skype.

To replicate this interactive experience, financial institutions can leverage rich communication technology — such as real time communications — that can deliver an experience that measures up to customers' expectations.

RTC technology can provide a seamless way for financial institutions to include sophisticated features to their mobile banking and ATM experience.

Capabilities such as instant messaging, video calling and encrypted real-time sharing of files and screens at the touch of a button introduce the essential 'human' element consumers now expect from all mobile applications.

Redefining customer service

By combining the capabilities of rich communication technology with a more secure approach such as multifactor authentication, financial institutions can provide essentially the same secure, dynamic experience their customers get from visiting a local branch — along with the added convenience to customers of being able to access services via their mobile device.

Once a customer's identity has been quickly and securely authenticated via a mobile banking app, that customer can be routed to the most appropriate representative who not only has the customer's account history, but also relevant contextual information from the user's browsing history of past inquiries and transactions, which is automatically transferred to the representative as part of the exchange.

By connecting the customer with the most appropriate individual who has necessary information at hand, the FI can ensure that calls are resolved quickly and easily, without the customer having to repeat information. The outcome is a more personal, trusting interaction.

Embracing new opportunities

Using increasingly secure authentication techniques such as multifactor authentication with biometrics and rich communication technologies, banks can simultaneously improve the experience  and save time and money.

Given analysts' prediction that more than 6 billion mobile devices will be WebRTC-capable by 2019, it's never been more important for financial service providers to embrace opportunities to build customer trust, loyalty and retention.

And while mobile apps will certainly pave the way for providers to implement these strategies, banks must also look beyond mobile and seek ways to integrate the technology into their ATMs as well.

Xura works with communications service providers, operators and enterprises around the world, helping them to meet the needs of multidevice, multiservices consumers.

image istock