Manual processes, lack of automation, and security flaws are some of the main factors contributing to operational inefficiency in the financial sector. According to a study by the International Business Machines Corporation (IBM), the average cost of a data breach can reach nearly $4.7 million.
In this scenario, banks, fintechs, and credit-granting companies seek to optimize processes, ensure legal compliance, and meet customer demands while facing challenges in maintaining service quality.
Although it may seem simple, operational efficiency is only achieved through planning, well-defined processes, and an organizational culture focused on continuous improvement. In this context, biometrics can be an effective solution, strengthening system security, automating processes, and minimizing fraud risks.
In this article, we will highlight the key benefits of using biometric technology to enhance operational efficiency and increase profitability.
Let's get started!
The importance of operational efficiency in the financial sector
We are in the age of speed, and how does this relate to operational efficiency? Institutions that fail to keep pace with the market lose ground quickly. Customers increasingly demand fast, reliable, and cost-effective services.
Consider a digital bank. A customer wants to open an account to receive a payment, but faces bureaucratic processes of document submissions, multiple screens to fill out, and days of waiting to complete onboarding. For a service that claims to be digital, this doesn't seem efficient, does it?
In contrast, another bank simplifies everything. With minimal documentation and an account opening process that takes just minutes, the institution delivers what the customer expects. This is operational efficiency.
Biometric technology in operational efficiency
Biometrics simplifies internal and external activities, offering a practical solution to the challenges of the financial sector. Issues like forgotten passwords can be quickly resolved, as biometric authentication eliminates the need to memorize credentials or codes. This increases the institution's security, as well as reduces technical support costs. But that's not all.
Below, learn more ways to apply biometrics.
Fraud prevention
In external processes, biometric systems are highly effective in preventing fraud. For example, facial recognition in banking apps makes access faster and more secure. It also speeds up processes such as payment authorization and access to services, which enhances customer satisfaction.
Cost reduction
In internal processes, biometric technology reduces operational costs. Through biometrics, it is possible to eliminate expenses associated with traditional methods, such as issuing access cards to the institution.
Compliance with U.S data protection laws
Biometrics ensures the protection of sensitive data and adherence to U.S. data privacy laws (including the CCPA, CPRA, and sector-specific regulations like HIPAA or GLBA) in internal operations. This is achieved through encryption and advanced security mechanisms that prevent data breaches.
If on the one hand, integrating biometrics optimizes management, increases operational efficiency, and reduces financial risks, on the other hand, it may require a significant investment in physical infrastructure. However, cloud-based solutions are already available, eliminating the need for high costs.
Benefits of biometrics in operational efficiency
Even though biometrics plays an important role in security, fraud prevention, and resource savings, the advantages of this technology are not limited to this. Following, we'll explore more benefits:
- Accelerated customer registration: digital onboarding based on biometrics is faster and more secure, eliminating bureaucratic steps.
- Agility in payments and transactions: biometrics provides more efficiency and security when authenticating financial transactions.
- Customer experience: adoption of biometric technologies provides a more convenient experience for users.
- Automation of internal processes: integration of biometric solutions allows the automation of repetitive tasks, such as access control to restricted areas and sensitive information.
Although biometrics can be an effective solution, the choice of supplier requires care, planning, and execution in partnership with reliable technology. BioPass ID, for example, simplifies biometric implementation with a set of APIs that don't require prior biometric knowledge.
How to strategically choose a biometric provider
Before selecting the ideal solution, it is important to consider the company's specific needs. Next, we will show what BioPass ID offers to financial institutions.
Digital onboarding
Enables the implementation of fully digital registration processes, using facial and fingerprint recognition to validate customer identities quickly and securely.
Multibiometric authentication
Offers multiple biometric modalities, such as facial and fingerprint recognition, increasing precision and security in user authentication. Additionally, it provides customers with alternative authentication options.
User authentication in apps
Provides simple and secure authentication methods on mobile devices. It is also possible to capture the customer's fingerprint using the smartphone's camera.
Cloud-based multibiometric database
Offers a cloud-based biometric data storage system, enabling the addition, editing, and removal of data. Through API calls, it is possible to enhance security in transactions, verify customer identities quickly and accurately, as well as ensure the protection of sensitive data.
BioPass ID features for financial institutions
With reliable resources, BioPass ID increases the operational efficiency of financial institutions. Among the available options, the following stand out:
- APIs for integration: facilitate the incorporation of biometric functionalities into existing systems, ensuring a simple and efficient implementation.
- Biometric adjudication: ensures security and precision to biometric identification systems, evaluating the results of biometric matching.
- Digital signature capture: allows the integration of digital signature capture in applications through the Signature SDK, modernizing processes that require formal validation.
- 1:N analysis: verifies a user's identity by comparing the photo taken during onboarding with a photo taken at the moment.
- Liveness Detection: analyzes the image provided by the user and identifies the individual's liveliness to detect irregularities in biometric captures.
The platform offers advanced tools for automation and security. With APIs for the financial market and anti-fraud technologies, BioPass ID is ideal for companies seeking security and legal compliance.
Operational efficiency and security
As business speed and competition levels increase, financial institutions need to prioritize operational efficiency. By optimizing processes, enhancing internal resources, and investing in robust solutions, it is possible to reduce costs and ensure the quality of services provided.
In this article, we present ways to increase operational efficiency in the financial sector and the main technologies that can aid in the process. In the context of biometrics, we can mention BioPass ID, a customizable solution featuring biometric APIs, Liveness Detection, and signature SDK, and much more.
To learn more, talk to one of our experts. Alternatively, you can acquire the platform directly here.
