As self-help banking reduces the need for traditional bricks-and-mortar branches, so the need for increased client protection and remote support becomes apparent. And while banks are now able to reduce overhead like office space, they also need to invest in multiple layers of online security.

South Africa’s National Treasury is working hard to have the country moved off the grey list of the global financial crime watchdog Financial Action Task Force (FATF). It was placed on the list 18 months ago for not complying with international standards around the prevention of money laundering, terrorist financing and proliferation financing.

Vito Fabbrizio, Managing Director of Biometrics at HID, explains that this is especially important, not only for South Africa’s financial services sector and its clients, but also for its economy.

“Robust demonstrations of commitment to secure banking could have a role in expediting that. But for the average consumer and business operator, priorities around banking are a little more prosaic: We need to know that our money is safe.”

He points out that Reserve Bank Governor Lesetja Kganyago recently noted that South Africans are gradually moving away from using cash to the safety and convenience of digital transactions.

While nearly half of the country’s adult population withdraws all their money as soon as it is deposited due to preferences for cash, immediate financial needs, and distrust in banks, the central bank is pushing for modernisation in the retail payments space, citing the inefficiency of cash and other benefits.

Fabbrizio says consumers are increasingly comfortable with self-help banking, and most would prefer to not have to queue at a branch. The imperative for banks and regulators though, is to ensure that clients can transact with confidence and without risk. He says there are a number of ways in which that can be achieved.

Typically, most ATMs validate a user by verifying their cards and personal identification numbers (PINs). But cards can be easily lost or stolen, and scammers are increasingly adept at skimming or cloning them, leaving ATMs vulnerable to fraud. So another layer of security is required to verify that the user truly is who they say they are.

“One highly effective technology can ultimately authenticate and verify a user's true identity is biometrics. This gives financial institutions a means to verify and authenticate customers to access services quickly and safely, whether they be at the branch, ATM, online or accessing banking services via mobile apps.”

Biometrics are more convenient than traditional authentication methods since bank customers need no longer carry bank cards or recall their personal identification numbers or account numbers. They can access banking services with a glance of their face and/or a touch of a button to verify their identity.

Multi-factor authentication (MFA), a security method that requires more than one form of authentication to confirm a user's identity, often combines something the user knows (like a password or PIN) with something the user is (biometric verification). Banks are increasingly deploying biometric MFA, which may require both fingerprint and facial recognition to authenticate users. Internationally, biometric multi-factor authentication is emerging as the de facto standard for secure identification and transactions, offering enhanced security along with the convenience of a seamless banking experience.

The benefits of biometric authentication, particularly when combining facial recognition and fingerprints, are numerous:

Enhanced Security: Biometrics are hard if not impossible to forge or steal compared to traditional passwords or PINs.

Convenience: Users don't need to remember complex passwords or carry physical tokens, which can also be lost or stolen

Speed: Authentication can be completed in seconds, streamlining the user experience.

Reduced Fraud: The difficulty in replicating biometric data helps prevent identity theft and unauthorized access.

Non-transferability: Unlike passwords or cards, biometric data cannot be shared, ensuring that only the authorized user can access the account.

Scalability: Biometric systems can be integrated into various banking channels, from ATMs to mobile apps.

Audit Trail: Biometric authentication provides a clear, traceable record of who accessed an account and when.

Incorporating facial recognition as the first factor of authentication allows ATMs, teller applications, online banking apps, and more to confirm the customer's identity and load their account information without needing to insert a card, enter a PIN or password, or produce identification. This initial step not only enhances security but also personalizes the banking experience from the outset.

The second factor, fingerprint authentication, further validates the exact presence of the individual accessing the ATM or banking service. It also verifies the intent to complete the transaction, adding an extra layer of security and consent. This two-step biometric process significantly reduces the risk of unauthorized access, even if a device is stolen or compromised.

Moreover, this dual biometric approach addresses concerns about spoofing or forced access. For instance, while someone might be coerced into looking at a camera, the additional requirement of a specific fingerprint makes unauthorized access much more difficult.

Fabbrizio concludes: “With biometric security, your customers won’t have to do anything more than simply be who they are to access banking services. Biometric security offers convenience, ease and efficiency in ways that traditional forms of security do not, leading to an optimal customer experience.”