5 reasons to DITCH Passwords and adopt Biometrics! (Right Now)

by Nik Maguire

The seismic shift towards online services in 2020/21 has triggered intense debates in boardrooms, huddles, and scrums.

Cubicles and Zoom calls are alight, discussing: 'unprecedented growth'; impact on legacy systems; 'shifting paradigms' and 'aggressive competition'.

Among the technical communities, the debate focuses on solutions to tackle these challenges such as 'radicle UX design', 'customer lifecycle optimization' and 'scalable cloud services.'

Nowhere has this shift been more acute than in banking with 'challenger banks' taking market share from some of the most established institutions.  Surprisingly it's not the allure of high interest rates or flexible overdrafts that's causing many consumers (especially millennials) to migrate but...

...a "slick user interface and experience"

'Challengers' have created simple user journeys to overcome the red tape required for opening new accounts.  Opting for Biometric verification as a way of accelerating the onboarding journey and proving a users identity.

Millennials, who in large part have grown up sharing digital images of themselves have little concern about using a selfie or a fingerprint to access online services.  Especially if that means they don't have to remember an illegible sequence of alphanumeric text to access accounts!

But the impact of Biometric Identity Verification goes way beyond customer onboarding and the banking sector, it has proven to be such a convenience for consumers that they are expecting it everywhere!


Here are 5 reasons why your business should consider Biometric Identity Verification right now:

1. Changes in Customer Expectations

1 in 4 millennials have already voted with their feet (or to be more precise their faces) record numbers are migrating towards new brands where access is simple, multichannel and frictionless to match their mobile lifestyles.

Juniper Research predicts an explosion of biometrics for secure payment authentication, with the market growing from 671 million users for payments in 2020 to 1.4 billion by 2025.

According to Google 75% of Americans are frustrated with passwords. Therefore, replacing passwords, text messages and the annoyance of clicking pictures of bridges with Biometric Identity Verification is not only better for your customers but it also provides significantly improved security...

2. Stopping Account Takeover Fraud (ATF)

During the pandemic ATF increase by 378%, the hardest hit sector was eCommerce (61% of their customers reported attacks) followed by Social Media (36%) and Financial Services (35%).  

The attacks are increasingly more sophisticated using automation and bots to discover peoples passwords, hijack their browsers or defraud businesses by masquerading as customers. 

But it's not just hackers, Google research shows 43% of people have shared their password with someone and that 42% of organizations rely on sticky notes for password management!

Biometric Identity Verification is a surefire way of proving the person accessing the service is the account holder.  Using 9000 facial data points to match against their government id this method of authentication brings new levels of identity certainly and trust.  

3. Simple Replacement with Identity Verification as a Service (IDVaaS)

Why stop at customer onboarding for KYC/AML? The frictionless convenience of Biometric Identity Verification warrants deployment through an entire customer lifecycle. With cloud-basedIDVaaS you can gather greater levels of identity assurance further down the user journey for example when introducing paid subscriptions after a free trial. This can remove the pain of passwords and two-factor authentication creating happier customers!


Using IDVaaS you don't need to develop sophisticated biometric software yourself, simply integrate using an API or SDK.

4. Multichannel 

Webcams are the new telephone!  Dating, parties, and business meetings all migrated to video calls throughout the pandemic, Zoom alone hosted 300 million meetings a day in 2020!

The adoption of front-facing cameras on tablets, laptops, and phones has provided the ultimate convenience for Biometric verification, the technology infrastructure has been laid for this new revolution.

By deploying IDVaaS you can provide secure frictionless access to your services anywhere via any device.  Enabling users to return more frequently with less hassle.

5. Competitive advantage 

The phenomenal adoption of Biometric Verification is rapidly setting users' expectations.  The tolerance for complex password-based, two-step authentication is at an all-time low and can make services seem outdated and cumbersome. 

Providing excellent UX and increased assurance around account safety will help businesses remain competitive and relevant to their tech-savvy (webcam enabled) customers.  Further protecting your brand and business from fraud and cyber attacks.

Summary

Let's face it passwords are hard work! They are inherently insecure, when users are asked to create their own passwords 59% use their name or birthdate!  The bodged two-factor authentication is even more painful if you change your phone number or email address. The whole passwords thing is just old school.

Thankfully Folio IDVaaS can be deployed as a cloud service and tailored to your commercial needs from 'Pay as You Go' for growing companies to tiered solutions for higher volume IDV requirements letting businesses deploy IDVaaS rapidly.

The world has been searching for a better solution to passwords for years, now it seems the answer is staring you in the face!


For more information about Folio Identity Verification as a Service visit https://folio.id/solutions/idvaas


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