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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. ©2017 Acuity Market Intelligence

9. 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

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

11. 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

12. Thank You! Taming the Authentication Beast Whitepaper
Available for download at
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The Global Biometrics and Mobility Report: 2017 Edition
Available for Preveiw at
©2017 Acuity Market Intelligence