The Evolution of Money and Biometrics Biometrics in Financial Services C. Maxine Most Principal Acuity Market Intelligence findBIOMETRICs Webinar \November 8, 2017

About Acuity Market Intelligence The Definitive Source for Biometrics Market Intelligence Strategic Research Consultancy with Biometrics Focus in 2001 Consistently delivers thought-provoking, data-driven insight and analysis Proven record of accurately forecasting Biometric and Digital Identity market trends OTS and Custom Research: Mobile Biometrics, ABC, National eIDs, ePPs ©2017 Acuity Market Intelligence

Biometrics in Financial Services Biometrics Financial Service Offerings Mobile Ecosystem Driven Demands Financial Service Biometric Priorities Market Disruptors at Play Cloud Vs On Device and the Rise of BISPs ©2017 Acuity Market Intelligence

Biometric Financial Service Offerings Pre Biometric Smartphone Era Biometric Smartphone Era ATMS Call Centers In-Store Payments Check Cashing Banking Fraud Surveillance Mobile, Online, & In Store Account Access Account Management Payments Shopping Fraud Monitoring & Detection ATM Access Embedded Smart Cards ©2017 Acuity Market Intelligence

Mobile Ecosystem Driven Demands Customer Expectations have been transformed by Innovation, agility, immediacy & technology-driven hi-touch responsiveness. Must RADICALLY improve customer journey to reap the rewards of Digital Revolution. Requirement for seamless omni-channel flow ©2017 Acuity Market Intelligence

Financial Services Biometric Priorities EXPERIENCE: Improve User Experience and Engagement FRICTION: Eliminate unnecessary friction while applying the requisite level of security at each decision point. ASSURANCE: Secure, Reliable, and Fraud Free Interaction ©2017 Acuity Market Intelligence

Market Disruptors at Play Focus on the Customer Journey Proliferation of Smart Biometric Devices Mainstreaming of Biometrics Massive Data Breaches and Financial Fraud Impact of Artificial Intelligence, Machine Learning, Neural Networks Blockchain -> Limitations of Relational Database Model ©2017 Acuity Market Intelligence

©2017 Acuity Market Intelligence

On Device Vs Cloud Biometrics Local storage of biometric templates Enroll on each device; Biometrics are localized Cannot create a single cross-channel identity User interfaces vary across devices No simple way to back-up biometric data Individuals can enroll with multiple identities No provisioning –cannot distinguish among multiple individuals, Approximation of Identity Biometrics and PII collocated on same device Limited capacity to integrate Machine Learning Biometric templates stored on a server Single enrollment; Biometrics are portable Easily maintain a unique cross-channel identity Universal user interface capable Users not responsible for back-ups Individuals can’t enroll with multiple identities Unique Verifiable Identity not based on token, PW, OTP Easily disaggregate Biometrics from PII Easily Itinerate Machine Learning ©2017 Acuity Market Intelligence

Biometric Authentication Models BISP Cloud Hosted BISP Cloud On Device ©2017 Acuity Market Intelligence

Example of BISP Payment Disruption Payment Processing Retailer POS Merchant Processor Card Association Card Issuer Processor Issuing Bank Direct From Bank Credit on Demand Biometric Identity Service Provider ©Acuity Market Intelligence Payment Processing is a $2 billion annual business. The global economy is spending $2 billion supporting a legacy ecosystem based on physical money and branch banking. Mobility and Biometrics have begun to transform this ecosystem with the emergence of Apple Pay and its competitors. But this is just an initial first step where biometrics are providing a convenience factor layered on top of a pin code. The real disruption will begin when Clod based biometric authentication is used and Payment processors – fee ling the threat of early Disruption respond. But this of course will be to little to o late as Cloud based biometric authentication via Biometrics Identity Service Providers Disintermediates the relationship between consumer's and product and service providers. When consumers can be biometrically and often anonymously verified by provider who have also been vetted, what value add do credit cards and the entire Payment Processing infrastructure offer? ©2017 Acuity Market Intelligence

Thank You! Taming the Authentication Beast Whitepaper Available for download at www.acuity-mi.com Contact me cmaxmost@acuity-mi.com +1 720 530 5836 Visit me www.acuity-mi.com Follow me @cmaxmost The Global Biometrics and Mobility Report: 2017 Edition Available for Preveiw at www.acuity-mi.com ©2017 Acuity Market Intelligence