In the last years, we saw face-to-face banking gradually be replaced by digital accounts. Thanks to the internet, we can access them from anywhere and thanks to biometrics, we can have more security when accessing them. However, do you know how biometrics contributed to trustworthy digital accounts?
Today, it became part of our routine. However, this shift did not occurred overnight. In this article, you will understand how biometrics allowed bank transactions to be able to be done directly by mobilephone securely.
Are digital accounts here to stay?
Just under a decade ago, it was hard to imagine that we could pay a bill just by pointing the camera at the phone or sending money to a family member instantly and at no cost.
What is now common for millions of people in Brazil was only allowed in 2016. It was with the regulation of the National Monetary Council (CMN) that digital banks were able to start their activities in Brazil.
Since then, in just 6 years, Brazilians became a world reference in rapid digital access. Research shows that Brazil is among the 3 countries with the highest number of users of digital bank accounts, even ahead of economic giants such as the United States.
While Latin neighbors, such as Chile, have 90% of the population still linked to a traditional bank as the main financial institution, 73% of banking transactions in Brazil are digital. That's 7 out of 10 transactions!
Also, in 2022, it was revealed that, for the first time, the number of digital bank accounts opened exceeded traditional ones.
And there is more to it, at least that's what the numbers say. In the face of so much expressive data, some questions come to our mind, for example, what does the future wait for us?
The future of digital banking
According to a Juniper Research survey, payments made over the internet through biometric authentication will grow by 365% by 2027 compared to the 2022 forecast, and could move up to US$1.2 trillion worldwide.
Thus, the predicted future indicates that the growth, attested in the studies released this year, represents only the beginning of the success of digital banking transactions that, so it seems, came here to stay.
Overcoming the numbers of traditional banks and in such a short period of time is not simple. This growth is due to the several benefits seen in digital banks.
Practicality
Among the qualities of digital banks and the one that certainly attracted and still attracts many people is the practicality of having a digital account in the palm of your hand.
Say goodbye to long queues to pay bills and abandon bank passwords was a relief to millions of people who needed to deal with bank bureaucracies.
What once lasted a whole day, today is transformed into a few minutes and even seconds.
Low cost
Another great feature of digital accounts is the reduction of costs. In Brazil, digital banks arrived with the idea of exempting some costs, for example is the zero annuity rate, proposed by the first digital banks. Previously, in addition to spending time to complete their tasks, the population still paid a monthly fee for account maintenance.
Several transactions also had their costs reduced or canceled with the arrival of the digital. Bank transfers, when made to the same bank where the account was held, had the option of free payment.
Pix
Born in 2020, Pix, in less than 1 year of operation, has become a consolidated mean of payment, which in itself attests to its acceptance by the Brazilian people.
With it, the barrier between the banks was loosed, because it became possible to transfer values, within the stipulated limit, between different banks and best of all: at no cost.
Democratization
Inclusion is also a differential of digital banks. By providing minimal or even zero costs, requiring only internet connection, digital accounts are more accessible to low-income people due to its practicality and cost-freeness.
Faced with so many benefits, it seems to be an unquestionable choice to exchange the bureaucratic and traditional account for the ease of the digital account. So, what is missing for digital banks to become the main financial channel, not only in Brazil, but globally?
Accenture's research indicates that the main dilemma of digital banks is still a lack of confidence. When it comes to our economies, changing the way this relationship behaves is delicate and can arouse uncertainty, especially by mentioning advantages as great as those aforementioned.
The lack of knowledge and interaction with other people is still a hindrance to potential digital account customers.
Biometrics x digital accounts
When it comes to trust, BioPass ID is a reference.
Knowing the relationship challenges that digital banks have, biometric technology emerges as one of the main contributors in the digital account revolution by gaining the trust of current users and being a potential proposition of what is so sought after by potential customers.
By having its technology based on elements unique to each human being such as fingerprints and facial features, biometrics can be used in several functionalities and steps of digital accounts, such as:
- Digital Onboarding: to ensure that the opening of accounts occurs correctly, bringing peace to the customer and the satisfaction of the bank in providing a safe service, it is necessary to bet on a high level technology.
Using the Quality API it’s possible to minimize the chances of errors when creating digital accounts, allowing a remote process, without human intervention, to have security similar to a face-to-face experience.
- User authentication: Currently, biometrics is the main feature used in account access control, coupled with other layers of protection such as PIN code or other types of biometrics. This is called two-factor authentication.
With the images (for facial biometrics) and digital (for access by fingerprint) registered when onboarding, access to accounts become safer, since, from a good enroll, the chances of identity theft and fraud are minimal.
Knowing that what has been registered will be used to authenticate and identify the true user of the account, the validation of transactions is carried out with much more success, speed and peace.
Knowing, in an uncomplicated and applicable way, the power of biometrics, it’s easy to maintain confidence or even give a chance to the innovation brought by digital accounts. You want to attest our safety? Visit our demos page.
