2.
The
traditional
technologies
of
chip-‐embedded
cards
and
pins
are
outdated
and
easily
replicated;
there
is
a
need
for
a
more
secure
and
convenient
way
of
accessing
your
funds
and
bank
information.
The
advent
of
Apple
Pay
(2014)
as
well
as
the
implementation
of
Biometric
authorization
(Fingerprint
and
Vein
Geometry)
within
Barclays
(2014)
represents
an
opportunity
for
Australian
Banks
to
adopt
this
new
technology.
Biometric
technology
is
becoming
cheaper
in
both
application
and
usage,
especially
since
it
is
now
embedded
into
smartphones,
such
as
Apple
Pay
(2014).
Its
development
has
been
the
result
of
a
demand
from
customers,
particularly
Gen
Y
for
a
more
intuitive
method
for
authentication
over
passwords
and
pin
codes.
This
is
supported
by
a
2012
KPMG
report
on
banking
behaviour
of
Gen
Y,
which
forecast
that
this
demographic
will
hold
70%
of
financial
assets
in
2030.
It
also
found,
that
banks
need
to
make
greater
use
of
the
invisible
security
concept
to
improve
the
customer
experience
and
enhance
risk
management.
Kristina
Craig,
Associate
Director
at
KPMG
noted
that
fintech
partners
are
being
used
by
global
banks
in
the
biometrics
and
behavioural
profiling
fields.
This
is
pertinent
given
that
KPMG
are
the
current
auditors
for
ANZ
and
Suncorp.
A
key
driving
force
for
this
change
is
smartphones,
which
have
disrupted
many
other
industries
including
communication,
cameras
etc.
So
it
only
makes
sense
that
it
would
challenge
the
way
that
we
use
our
money
–
utilizing
technologies
like
Near
Field
Communication
(eg.
Paypass/
or
Paywave)
to
streamline
everyday
life.
There
are
number
of
different
biometric
technologies
that
have
varying
levels
of
uptake
including
fingerprint,
heart
beat
scanner,
vein
geometry,
voice
analysis
and
facial
recognition.
The
most
popular
of
these
technologies
being
fingerprint
biometric
scanners
(particularly
with
Gen
Y).
The
greatest
challenge
for
the
Australian
banking
sector
is
not
deciding
whether
to
implement
biometric
banking,
as
Apple
Pay
will
go
global,
but
whether
you
want
to
be
ahead
of
the
pack
or
playing
catch
up.
Global Trends
3. Types
of
Biometric
Scanners
available
Facial
recognition:
This
is
one
of
the
most
flexible
methods
as
it
can
be
done
without
the
person
being
aware
that
they
are
being
scanned.
This
system
analyzes
facial
features
like
the
distance
between
the
eyes,
width
of
the
nose,
position
of
cheekbones,
jaw
line
and
chin
etc.
This
technology
is
better
suited
to
branch
verification,
as
it
has
not
been
implemented
into
smartphone
devices
to
any
great
degree
and
would
represent
a
large
up-‐
front
cost
in
R&D.
Fingerprint
Identification:
The
fingerprints
of
any
person
remain
the
same
throughout
their
life
and
no
two
fingerprints
are
ever
the
same.
To
ensure
accuracy
it
requires
clean
hands,
free
from
injuries
to
the
prints,
as
this
would
prevent
proper
identification.
The
major
benefit
is
the
ubiquity
of
the
technology
currently
with
the
support
of
Apple
and
Samsung
through
its
implementation
into
their
flagship
phones.
In
Australia,
Westpac
and
St
George
Bank,
have
integrated
Touch
ID
into
their
respective
apps
in
2014,
giving
them
first
mover
advantage.
Vein
Geometry:
This
technology
provides
the
liveliness
factor,
in
that
the
reader
only
works
on
a
living
person,
it
analyses
veins
with
blood
flowing
in
the
fingers.
In
2014
Barclays
(UK)
partnered
with
Hitachi
to
provide
two
factor
biometric
scanners,
combining
fingerprint
and
vein
geometry
to
provide
accuracy
exceeding
a
1
in
1,000,000
chance
of
replication.
This
technology
is
very
powerful,
however
it
requires
dedicated
readers
to
be
implemented
in
store
and
on
ATMs.
This
is
a
proven
technology
that
has
been
successful
overseas,
in
countries
including
Japan
and
UK.
Voice
Analysis:
This
method
of
security
biometric
can
be
implemented
and
tested
without
the
person’s
awareness.
Though
it
is
easier
to
forge
by
using
a
soundtrack,
it
cannot
be
replicated
by
trying
to
reproduce
another
person’s
voice.
It
is
currently
being
used
by
NAB
(introduced
in
2009),
which
has
more
than
150,000
customers
who
have
enrolled
their
voiceprints
to
help
correctly
identify
them
when
contacting
the
bank’s
call
centre.
Heart
Beat
Scanner:
This
method
uses
an
embedded
electrocardiogram
(ECG)
sensor
to
recognize
the
unique
cardiac
rhythm
of
users.
This
ECG
sensor
is
able
to
match
the
wearer’s
ECG
against
a
stored
profile
in
order
to
authenticate
the
wearer’s
identity.
The
market
leader
in
this
technology
is
Bionym,
which
recently
released
the
Nymi
wearable
wristband
(2013),
it
has
an
inbuilt
NFC
chip
that
is
able
to
make
mobile
payments,
unlock
electronic
devices,
and
provide
authentication
for
online
bookings.
The
advantage
of
this
technology
is
that
it
is
more
difficult
to
replicate
than
fingerprint
identification,
which
can
be
left
behind
on
surfaces.
4.
471
Million
Forecast
number
of
global
smartphone
users
by
2017,
up
from
43
million
in
2013
–
JWT
Intelligence
It
is
clear
that
the
Australian
market
is
both
ready
for
and
in
need
of
the
improvements
that
biometrics
can
bring
to
the
banking
experience.
The
research
suggests
that
in
the
medium-‐long
term
Gen
Y
will
be
the
key
target
demographic
for
banks
and
they
will
want
invisible
security
(KPMG
2012).
Additionally,
there
are
many
challenges
fast
approaching
the
banking
sector,
including
Apple
Pay
and
similar
payment
platforms.
It
is
about
rising
to
these
challenges
and
meeting
a
more
tech
savvy
customer
with
the
tools
and
structures
to
satisfy
their
needs.
It
is
therefore
recommended
that
Australian
banks
should
implement
biometrics
into
their
banking
experience.
The
best
method
being
the
two
factor
authentication
of
fingerprint
and
vein
geometry
due
to
its
intuitive
nature
and
proven
record
in
the
UK
with
Barclays.
In
the
short
term
it
would
be
prudent
to
leverage
existing
technologies
in
smartphones,
such
as
Apple
ID
through
integration
with
existing
apps.
The
Future
of
banking
We
cannot
solve
our
problems
with
the
same
thinking
we
used
when
we
created
them
–
Albert
Einstein
