Building A Digitally Secure India: The Advent of Biometric Authentication in Financial Transactions

With digital India movement gaining momentum, our country is gradually growing more and more tech savvy. This wave of technological revolution has brought focus to maintaining the accuracy and security when it comes to keeping appropriate records. Identification through bio-metric has become a secure task that has been fast reaching far and wide in our nation of 1.34 billion. The banking industry is presently going through the age of radical transformation with the sure promise of upgraded of technological accuracy, reducing the risk of fraud and mismanagement.

Thus due to the rise in banking fraud, the regulators of financial institutions, biometric verified payments have started replacing traditional PIN, passwords and tokens with biometric security system. The traditional security keys are easy to imitate. They also prove to be ineffective in protecting customer’s information. The ‘Biometric Identification’ is more secure than the current system of passwords.

End of the Password age

Gone is the age of password since the introduction of Biometric system. The banking industry has radically evolved from the traditional security keys. The Biometric system is considered to be more suited security key for the banking industry. It is beneficial both for the consumers as well as for the banks. Biometric has been embraced as the vibrant security system. Moreover, passwords are tough to memorize.

Fingerprint identification

This is one among the new identification features. It is number one requested feature which is now available in maximum number of smart devices. You can simply save your fingerprint at a secured and authorised server base and let the device authenticate it during any transaction. Fingerprint being unique to every individual, this user authentication method ensures complete security. Now, the same technology has been finding prominence in FinTech arena.

Biometrics in Branch Banking

With the implementation of Biometric system in the bank branches, a customer can walk into any bank and the identification can be done by fingerprint or finger vein biometric scanners. The identification data of the individual matches the existed data in the bank’s database, following that, he can easily proceed towards his banking transaction. This system may help to maintain an accurate detail trail of every transaction like cash payment or cheque and can prevent the chances of fraud.

Biometrics for Online Banking and Mobile Banking

The online banking system is the most popular banking system prevailing these days. It provides an easy procedure of banking transaction from anywhere. You can use smart devices like laptops, computers and smart phones to access banking services online. Online banking is presumably seen as risky. There have been frauds related to online banking before the availability of evolved technology. There are several security steps that help online banking system protect their customers. These security measures are fingerprint scanning, facial recognition, and voice recognition.

Mobile banking has been gaining popularity pretty rapidly, all over the world. The security issues are distracting consumers from using Mobile banking. Even though cyber crime has been growing, biometric authentication has been taking off as a more secure way of authenticating transaction. As of now, new identity verification methods securities like; fingerprint identification, voice recognition, etc have entered the market as the perfect solution.

Despite the age of technological revolution, biometric authentication has been facing issues. People in the rural areas are sceptical of this technology; there is a general air of fear when it comes to technology and their hard earned money. Recently a video of a man in immense fear of authenticating identity via biometric device has been going viral. Initially these videos seem funny, but on a serious note people are actually afraid of the technology of biometric devices.

Today the Aadhaar or the UIDAI no. has taken the agenda of identity authentication by storm.  The UIDAI no. has now become a mandatory pre-requisite for all financial transactions. This has brought about convenience along with security of transactions for people in general. Aadhaar number holders and service providers can secure their biometric authentication by locking their biometrics. Country residents can unlock their biometrics before doing any biometric transaction in prevention of identity theft.

Aadhaar Enabled Payment System (AEPS) has been successfully installed in around 17,250 fair price shops. A report says that government has managed to save INR 36,144 Crore during the course of last two years using Aadhaar Payment System as a bridge.

The development of a country is considered with the advancement in its economy and that can be measured through the upsurge in bank and financial institutions. Biometric system avails an impenetrable security and hassle free transactions which was previously impossible with traditional security keys.  The idea is not just to build a digitally enabled India, but also a digitally secure India.

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