A software company Daon has urged banks and financial technology companies (fintechs) to invest in biometric authentication in order to improve the digital experience, while authenticating and verifying customers.
Speaking at a roundtable meeting in Lagos recently, the President, EMEA and APAC, Clive Bourke, said while there quite a number of biometric techniques, the established ones used in banking and financial services are finger prints face and voice biometrics, "which is known as behavioural biometrics."
He also noted that another benefit of the technology was to make it easier to remotely connect new customers, through a process known as digital on boarding.
He said: "Today, in most countries, people have to go a bank branch to open a bank account or go to fintech location. Fintechs don't want to have locations, and banks don't want to be dependent on branches, all you can do, do it on a digital channel, either on the web or mobile.
"Essentially capture your face make sure it is a real person not a photography or video, so submit that and capture your identity document information, read the photography of the identity document, match it against the live face, and essentially, you now have a verified person and you have registered their identity information. So that how people are using it to grow their customer base."
Bourke explained that in leveraging the new technology banks and fintechs should ensure that it was secured and convenient in accessing services and performing transactions.
Bourke further noted that the technology could help banks and fintechs tackle financial fraud by detecting a fraudster.
According to Bourke, "The watch list can be a facial watch list, basically, we only need the photography of the fraudster, even if they have a total different identity, they still need to submit their face, and the face searches against the facial watch list, then we find a match, that is a totally new technique we are taking back from government implementation back to financial services and we have done a lot about that in both sectors.
"The potential for growth is very significant. Presently, I think we are at the course of starting, it is not significantly developed, there is some good things done already. The truth really is that Nigeria is that it has a growing volume of banking customers. Within that growing of banking customers, there is a growing adoption digitally. But basically everything is well. The rate of acquisition of customers in the first place, the rate of adaption of online banking, mobile banking, the USSD, therefore there is significant growth in all areas."