FINANCIAL INNOVATION EUROPE ASIA | Comparative Study
CHAPTER 1: INTRODUCTION
FINANCIAL INNOVATION EUROPE ASIA of the money related information remains concern toward the financial organizations everywhere throughout the world furthermore in Asia and Europe. Bio-metrics in banking exhibit a reasonable and imaginative secure technique for managing an account that can possibly ensure the information of the financial institutions and that of the clients.
It is shocking to find that about a large portion of the world’s populace does not have a bank account (Digitalpersona, 2014). Biometrics displays an extraordinary opportunity for banks to tap this opportunity and permit clients to work their ledgers utilizing biometrics. Biometrics engineering gives a more secure and precise innovation for the issue of the bank credit and check cards that aide in the recognizable proof of the clients on the premise of their smart-id cards biometrics information. The biometrics introduces a reasonable and basic engineering for the bank enrolment and keeps the shots of any false action (Digitalpersona, 2014).
Biometrics innovation includes the checking of the fingerprints of the client or representative on the enrolment that is trailed by the framework checking and matching for any copies to avoid misrepresentation. The client or employee filtered fingerprints at the time of getting to information and the framework naturally reports any suspicious action and creates the reports.
Financial innovation has played an instrumental role in improving the financial services all over the world while bringing convenience to customers in different parts of the world. There are a lot of differences in financial technology that is evident in the regions of Asia and that of the Europe. Therefore, a research study is being conducted so as to analyze the differences in the financial innovations that may exist between the regions of Asia and Europe.
The majorities of consumers in the Asia region are younger and have greater acceptance of new technologies in the field of financial sector that motivates the banking institutions in these regions to launch innovative products and services to cater to the demands of the changing consumer preferences. The majorities of consumers in the European regions are mature and therefore the financial institutions in these countries have a lesser orientation towards innovations. An important factor that also affects the level of innovations in the regions of Europe and Asia is the difference in the economic growth in these regions. The economies of Asia region are still in the emerging stages and have considerable scope for growth and development. The economy of Europe on the other hand, is mature and stable in growth and development.
Security of the financial data remains a concern for the financial institutions in the regions of Asia and Europe. Some of the innovations in the banking industry include biometrics technology, RFID technology for credit cards and mobile payments technology. The innovation selected for the current study is biometric technology.
Biometric technology is a modern technology that allows security to the banking institutions to detect fraud and theft. Biometrics is automated methods to recognize customers on the basis of their biological characteristics such as fingerprints, retina, and iris and voice recognition patterns (Trader, 2014).
1.3 Research Aim and objectives
1.3.1 Research Aim
The main aim of research is to identify and analyze the impact of biometric technology innovations in the security and efficiency in the banking institutions in Asia and Europe
1.3.2 Research Objectives:
- To assess the importance of biometrics innovations in the banking institutions in Asia and Europe regions.
- To identify the challenges and opportunities in the implementation of biometrics innovations in banking institutions in Asia and Europe.
- To recommend future strategies for biometrics innovations in the banking institutions in the regions of Asia and Europe.
1.4 Scope and Significance of the Research
The study will assess the importance of biometrics innovations in the banking institutions in Asia and Europe regions and will identify the challenges and opportunities in the implementation of biometrics innovations in banking institutions in Asia and Europe. As part of the study recommendation will be given as what strategies could be followed by the banks in implementing biometrics innovations.
This study will help in understanding the importance of Biometrics innovations in the security and efficiency in the banking institutions in Asia and Europe. In the context that the technology has evolved and the use of biometric applications have increased. It is important the banks gain a competitive edge by implementing a more secured security system which will help in gaining the confidence of the consumers. Research findings will be useful for banks as well as future researchers who wish to peruse further study on the topic.
1.5 Rationale for the chosen topic
Biometrics has been an answer to security issues spanning across industries like defense etc. Biometrics can be used to solve the security issues faced by the consumers and Banks for protecting the financial data. The solutions can vary from voice biometrics to face recognition and can nearly provide security of accuracy level 99.9% (Cook, 2013). The biometrics is an excellent and secure solution to provide secure financial transactions for the banking institutions. Exploring the area would help in assessing the innovations in the field of biometrics in banking institutions and assess the most efficient, secure convenient and reliable solutions for financial security. The research subject is of importance in the context that security of transactions and data is the major concern for the bankers and customers. The choice of comparison between Asia and Europe was considered as Asia is the leader in innovations in the financial sector, according to a research study released by Infosys (Ryan, 2013). The banks in Asia region, primarily deal with customers that are comparatively younger in age and embrace new technology in comparison to European banks where the median age of the consumers is around 40 years (Ryan, 2013). The comparison between the Asian and European banks will be done in terms of the practices followed, technological innovation available and the challenges and opportunities in the implementation of biometrics innovations
1.6 Dissertation Structure
There will be seven chapters in this dissertation. The dissertation will start with the “Introduction” chapter. The chapter will focus upon the importance of the research topic and will present the background and the context of the study. Research aims and objectives are also presented in this report. This chapter will be followed by the “Literature Review”. The focus of the chapter will be on past studies which are relevant to the research topic. Some of the previously conducted study will be used as the base for conducting the research. Next chapter will be the “Research Methodology” where the research methods and procedures used in the study will be briefly discussed. The chapter also presents the justification for the research methods selected for the study. The fourth chapter i.e. the “Data Analysis and Presentation” is the next and the important chapter of the dissertation. The data collected through the primary and secondary research methods is analyzed in this section. The next i.e. the fifth chapter is the “Results and discussions”. The results drawn from the data analysis conducted is present in this section. The second last chapter of the report i.e. the sixth chapter will be the “Conclusions and Recommendations”. The chapter will present a discussion on how the objectives undertaken for research have been met. The conclusions drawn from the study are presented along with few recommendations which will be useful of the readers. The seventh and the last chapter will be the “Personal Development” where the researcher would discuss the contribution of research in developing his personality.
CHAPTER 4 DATA ANALYSIS
Data analysis plays a very important role for achieving the objectives of the research and it further helps in enhancing the overall quality of the dissertation undertaken. It is that part of a study which involves aspects such as documentation, presentation and analysis of the primary data collected from the 4 sample size to assess the biometrics innovations in the banking institutions in Asia and Europe regions. This data collected will also help in supplementing secondary data that have been looked after by the researcher considering different academic literature and other works carried out by scholars and investigator regarding assess of biometrics innovations in the banking institutions in Asia and Europe regions. Sample selected for the study have been interviewed by researcher using Skype internet video technology and its findings are presented in this chapter. Investigator in total has framed 12 questions to be asked to the respondents considering various aspects with respect to biometric technology to be used in the banking industry. Data was collected on this basis and on the basis of responses proper categorization has been carried out, so as to carry out comprehensive thematic analysis.
Thematic Analysis of Primary Data
Thematic analysis is considered to be one of the qualitative analytic techniques used for extracting and documenting patters concerning specific data collected for the study. It is one of the method that helps researcher in organizing minimal data to be converted into rich information that is further interpreted and deducted from the said data. Thematic analysis is all about dividing collected data into various palpable themes. Theme is designed on the basis of some pertinent component that is reflected in the collected data. These themes entirely depend upon the research questions and represent some degree of a pattern with respect to recorded data. The rationale that can be drawn out of thematic analysis is that it is one of the tool that helps investigator in drawing out comprehensive idea with respect to data collected. However, this cannot be drawn out of any other means of analysis. Even the flexibility of this technique helps in achieving the research objective in a most effective manner and also increases the potential of the research.
Before categorization of theme researcher need to carry out through thorough analysis process in this regard. Information collected through interviews from the respondents concerning various aspects with respect to biometric technology to be used in the banking industry. Researcher in this respect has gone through responses many times, in order to develop a strong understanding for developing appropriate themes for the collected data.
Themes and their Analysis
In this part researcher has carried out an analysis process concerning themes that has been drawn out of views and opinions that has been detailed by four respondents who were interviewed for achieving the objectives of the study. Author has also incorporated its interpretation for the purpose of analysis. Themes have been drawn concerning a meaningful structure and it is entirely based upon the perspectives of each respondent.
Theme: 1 Finger print authentication is mostly used biometric technology in financial institution domain.
|Respondent 1||Finger Print Authentication, Hand geometry, voice verification and retinal scanning|
|Respondent 2||Finger Print Scanning|
|Respondent 3||Facial recognition, Signature verification, Key stoke, Hand scan and Hand vein|
|Respondent 4||Iris, Retina scanning, Figure Print Authentication, Hand Geometry, Hand vein and Voice recognition|
When bank managers of different countries were being asked about different biometric technologies they used in banking domain then majority of the respondents turn out their response in favor of using of finger print authentication. The reason of this preference for finger print authentication was found to be as highly accurate and less time consuming by the respondents i.e. bank managers. Following to finger print authentication, most of respondents also admitted that hand geometry and retina scanning is also widely used biometric technology in banking sector. In addition to this, bank managers also accepted that their banks use voice verification and hand vein in order to provide better security customers with regard to monetary transactions. Managers of banks believes that it is important to adopt biometric technology in the banking domain as it ensures security of money and other assets like gold to the customers and this lead to increase in reputation of the bank in the minds of clientele.
Theme: 2 Biometric technologies is of significant importance for the banking as well as overall financial industry
|Respondent 1||· Important for security of funds and protection of confidential data and assets|
|Respondent 2||· Enhances overall performance of bank|
· It reduces fraudulent activities.
|Respondent 3||· Gives more convenience to consumers for doing of secure transactions.|
· Biometric technology saves time of consumer by facilitating quick access or transactions.
|Respondent 4||· Highly good in securing money of customers with utmost easy and convenience.|
In the above table, responses of respondents with respect to importance of biometric technology can be seen that they considered biometric technology as the most important for security related aspect. Majority of the respondents admitted that biometric technology facilitates security of transaction i.e. funds and data or confidential information. In addition, bank managers also turn out their response by stating that biometric technology proving to be as significant in reducing or eliminating fraudulent activities. Following this response, bank mangers of Asian countries also answered that biometric technology provides more convenience and ease of use accessibility to the user or consumers. They answered that this technology is helping users in reducing the burden related to carrying of plastic cards and remembering of their passwords for doing of transactions at point of sale. So by seeing this aspect related to biometric technology, the fact can be laid down that biometric technology has significant importance in banking sector.
Theme: 3 Biometric technology enabling banking firms to attain security of transaction and data in a larger extent.
|Respondent 1||· In India biometric technology is widely used in banks.|
· Yet more improvement is required.
|Respondent 2||· Biometric technology offers wide range of features with respect to providing of security of funds.|
|Respondent 3||· Gives high security of banking transaction to the users.|
|Respondent 4||· Biometric technology facilitates greater security in doing of financial transaction by having good scanning processing.|
From the interview of bank managers of India and United Kingdom flooring information related to biometric technology was deduced. By evaluating the responses of bank managers of India and UK, it was found that biometric technology has widely been adopted in Indian banks but still much improvement with respect to biometric technology is required in India. Bank managers of Indian banks believed that sound development in biometric technology will provide more security of financial data and transaction to the users as well as banks and this will help banks in increasing their overall performance. Similarly, the bank managers of United Kingdom banks also believed that biometric technologies proving to be highly prolific to the banking institutions as it provides high security in doing of financial transaction. Further, the bank managers also admitted that the scanning process which is used in biometric technology is very effective as it eliminates the fraudulent activities. Further, bank managers also laid down the fact they able to convince customers to use their banking services as their banks are capable enough to provide enough security for financial transaction as well as other assets. So, by seeing this aspect customers are building trust on their banks services.
FINANCIAL INNOVATION EUROPE ASIA | Comparative Study
Theme 4: Retina scan is the most suited biometric technology that can be used within banking industry
|Respondent 1||Fingerprint recognition|
|Respondent 2||Retina scan and fingerprint|
|Respondent 3||Face recognition scan|
|Respondent 4||Retina scan|
From the above response table it can be interpreted that respondents of India consider that fingerprint scan will be one of the technique that can be deployed in the banking domain of the country. On the other hand differences has been seen in the responses of UK respondents as they responded face recognition and retina scan to be most suited biometric technology that can be used within banking industry. From the analysis it can be said that financial innovation that can be initiated in India in banks can be through incorporation of fingerprint scan. However, in UK face recognition and retina scan has laid down greater focus towards acceptability of biometric technology in the banks. Hence, in India the most acceptable biometric technology that can be deployed in banking industry must be the fingerprint scan for the security of the funds of the consumer. Even it is one of the techniques that is cheap and can be easily acceptable in the banking domain of developing country. But UK being one of the developed economies can deploy technology which has got high investment such as retina and face recognition.
Theme: 5 Finger print scanning is the most convenient security system biometric technology
|Respondent 1||· Finger Print Recognition|
|Respondent 2||· Finger Print Scan|
|Respondent 3||· Finger print and voice recognition.|
|Respondent 4||· Finger print recognition.|
In the above table, it can be seen that majority of the respondents stated that finger print recognition is one of the most convenient and best biometric technology which should be implemented in the banking institution. Bank managers of India see finger print scanning biometric technology as the best because it is cheap in cost which can be executed in large extent. Bank managers of Indian banks also believe that finger print scanning biometric technology is comparative cheaper as compared to other biometric technology. In addition to that bank managers of Indian banks also stated in their responses that finger print recognition is one of its kind of biometric technology systems which requires very less space for storage as compared to other biometric technology system. Similarly, the bank managers of United Kingdom banking institution also highly believes that finger print scanning is one of the best biometric technology which can be used successfully in banks as it is lower in cost and also facilitates high security to the both service providers as well as the service users. Following to finger print recognition, bank managers of United Kingdom also gives preference to voice recognition biometric technology. They said voice recognition biometric technology is also highly protective for service users or people for doing of financial transaction by using ATMs or point of sales.
Theme 6: Cash withdrawal, fund transfer, cash deposit and mobile internet banking are considered to be the most suitable place where biometric technique can be used within banking industry.
|Respondent 1||Withdrawing cash, fund transfer, cash deposit or other banking operations|
|Respondent 2||Withdrawal, fund transfer, balance check for customers.|
Banks can use it in their mobile and internet banking operations
|Respondent 3||In point of sale activity and for verifying and processing credit card transactions|
|Respondent 4||Mobile and Internet banking to perform banking transactions such as checking the balance in hand or fund transfer over the telephone|
One of the interview question asked by the researcher was concerning the banking channels where biometrics technique can prove to be most suitable. In this respect Indian respondent stated that biometric can prove to be best in the area of withdrawal, fund transfer, balance check for customers and banks can use it in their mobile and internet banking operations. However, UK respondents indicated this aspect to be mobile and Internet banking to perform banking transactions such as checking the balance in hand or fund transfer over the telephone. The analysis indicates that in India biometric technique can be used in banking industry for providing services to the customers with respect to withdrawing of their cash, transferring of funds and for checking out their balance. But in this respect UK responses that it can be used in banks for carrying out sale activity and for verifying and processing credit card transactions. Even it can be used for carrying out banking transactions and for checking balance in hand considering their bank accounts.
Theme 7: Retina scanning biometric technology should be used in ATMs
|Respondent 1||· Retina Scanning|
|Respondent 2||· Finger Print Scanning|
|Respondent 3||· Retina Scanning|
|Respondent 4||· Voice verification.|
In the above analysis, it was found that finger print recognition biometric technology should be used in banking system as it is cheaper and also very convenient of using. However, in the interview when respondents i.e. bank managers were being asked that what biometric technology should be used or implemented in ATMs or point of sale then most of respondents turn out their response by taking favor of retina scanning. So, it can be comprehend that majority of the bank managers preferred to use or implement retina scanning in ATM’s in order to provide high security of transaction and credential information to the service users. Following to retina scanning preference, bank managers of Indian banks and United Kingdom banks also gave their choice for finger print scanning and voice recognition. Bank manager said these biometric technologies can be used along with retina scanning or can be used as alternative biometric technology for providing of security of transaction to the consumers. Further, in the analysis, it was found that bank managers give preference to retina scanning because it cannot be replicated or used by other individual.
Theme 8: Hand geometry biometric technologies should be used for authentication in banking applications.
|Respondent 1||Finger print technique|
|Respondent 2||Hand geometry|
|Respondent 3||Retina scanning technique|
|Respondent 4||Hand geometry technique|
Researcher asked one of the questions to the respondents that which biometric technologies should be used for authentication in banking applications. In this respect most of the respondent indicated that hand geometry can be deployed within the banks for carrying out the authentication process in banking applications. In both the countries this aspect is considered to be effective to be placed in the banks. The analysis proves that hand geometry is considered to be most authorized access and it can uniquely identify a user in a system in a proper manner.evn it is one of the technique that is most developed to be used within the banking industry and easy to use.
Theme: 9 Biometric technologies are now mature enough to be used in the banking domain
|Respondent 1||It should be used in banking sector by seeing the security aspect of financial transactions.|
|Respondent 2||Biometrics technologies are matured enough to be used in banking industry|
|Respondent 3||Must need to use in the fast changing technological environment.|
|Respondent 4||Biometric technologies are still in developing phase. It needs much improvement.|
In interview, when respondents were being asked about whether do they believe biometric technologies are mature enough to be implemented in the banking sector then majority of the respondents answered that biometric technology has been developed in a larger level and can be successfully used in banking industry. Bank managers also stated that the security and protection which biometric technologies provide cannot be replaced by any other technologies. From the evaluation, it was also identified that bank managers of United Kingdom also perceives that biometric technologies is still in developing stage which require lot improvement in order to provide sound security of transaction to the customers. So, some respondents think biometric technology should be implemented in banking domain when it is in sound position to deal with security related issues.
Theme: 10 Providing of security and ease of doing of financial transaction are the significant benefits which banking institution can harnessed from biometric technologies
|Respondent 2||Ease of doing transactions|
|Respondent 3||Easiness and convenience way of doing financial transactions.|
|Respondent 4||Providing of security to consumer for doing of financial transactions.|
By doing analysis of the responses of bank managers of Indian banks and United Kingdom Banks, it is found that the main benefits which banking institution derives from biometric technologies are providing of secure and convenient way of financial transactions to the consumers. In addition to that biometric technologies also help banks customers in eliminating the risk of losing of credential information which are generally seen in doing of financial transaction by using Plastic cash i.e. Debit or Credit Visa or Master Card.
Theme 11: Main barriers or limitations in the implementation of biometric technology in banks.
|Respondent 1||Acceptability and multifactor authentication|
|Respondent 2||Failed to give accurate results|
Fingerprint worn with hard labour work or age
|Respondent 3||Privacy and confidentiality|
|Respondent 4||Financial literacy and lack of basic education are prohibiting factors|
One of the questions asked by the researcher was regarding main barriers or limitations in the implementation of biometric technology in banks. In this respect respondents details varieties of barriers that are associated with biometric technology. Indian responded that major barriers are concerning the its acceptability and multifactor authentication by the consumer, failed to give accurate results and fingerprint worn with hard labour work or age. However, UK responded stated that privacy and confidentiality to be an important barrier in this regard and even financial literacy and lack of basic education are prohibiting factors.
Theme 12: Stringent policies of government are the steps that bank officials should take in order to overcome the limitations
|Respondent 1||RBI and Bank should create a council to identify and eliminate biometric loopholes|
|Respondent 2||Create an office of biometric at state and district level|
|Respondent 3||Government and appoint technology experts who are proficient in their core area|
|Respondent 4||Proper knowledge with respect to biometric system must be communicated to each individual consumer|
From the above responses it has been seen that biometric limitations can only be avoided if governments frames out proper policies in this regard. Proper strategies formulated by the government officials in this regard will help in removing the barriers which come across the implementation of biometric ion the banking industry.
- Books and Journals
- Bhosale, T. S. and Sawant, S. B., (2012). Security in e-banking via card less biometric ATM. International Journal of Advanced Technology & Engineering Research. 2 (4). Pp. 9-12.
- Cohen, L. Manion, L. and Morrison, K. R. B. (2007) Research methods in education. 6th Edition. Routledge.
- Cooper, D.R. and Schindler, P.S. (2009) Business Research Method. 9th Edition. Boston: McGraw-Hill Irwin.
- Creswell, J. W., & Clark, V. L. P. (2008). Designing and conducting mixed methods research.
- Fatima, A., (2011). E-Banking Security Issues – Is There A Solution in Biometrics? Journal of Internet Banking and Commerce. 16 (2). Pp. 1-9.
- Frame W. S. and White L. J., (2004). Empirical studies of financial innovation: lots of talk, little action? Journal of Economic Literature 42. Pp. 116-144.
- Frame W. S. and White L. J., (2012). Technological change, financial innovation and diffusion in banking, in Berger A.N., Molyneux P. and Wilson J.O.S. (eds) The Oxford Handbook of banking.
- Kasi, P. (2009) Research: What, Why and How? A Treatise from Researchers to Researchers, 1st Edition. Bloomington: AuthorHouse.
- Marczyk, G., DeMatteo, D. and Festinger, D. (2008). Essentials of research design and methodology. John Wiley & Sons Inc.
- Noor, K. B., (2008). Case study: a strategic research methodology. American Journal of Applied Sciences. 5(11). Pp. 1602.
- Paul, L. J., (2008). Introduction to the Philosophies of Research and Criticism in Education and the Social Science. Pearson/Merrill/Prentice Hall.
- Peffers, K. (2008). A design science research methodology for information systems research. Journal of management information systems. 24(3). Pp. 45-77.
- Ratha, N. K (2008). Generating Cancelable Fingerprint Templates. IEEE Transaction on Pattern, Analysis and Machine Intelligence. 29(4). pp. 561-572.
- Sarma, G. and Singh, K., P., (2010). Internet Banking: Risk Analysis and Applicability of Biometric Technology for Authentication. International Journal of Pure and Applied Sciences and Technology. 1 (2). Pp. 67-78.
- Saunders, M (2008) Research methods for business students, 4th Edition. London: Financial Times Prentice Hall.
- Sekaran, U. and Bougie, R. (2010). Research Methods for Business: A Skill Building Approach, 5th Edition. Hoboken, N.J./Chichester: John Wiley and Sons.
- Venkatraman, S. and Delpachitra, I., (2008). Biometrics in banking security: a case study. Information Management & Computer Security. 16 (4). pp.415 – 430.
- Walden, G., (2006). Survey Research Methodology. IAP.
- Wilk, Richard R., (2011). The Impossibility and Necessity of Re-inquiry: Finding Middle Ground in Social Science. Journal of Consumer Research. 28 (2). pp. 308-312.
- Barclays Biometric Innovation. (2014). [Online]. Available Through: < freeassignmenthelp.com.hitachi.eu/social_innovation/?p=133>. [Accessed on: 28 December 2014].
- Beranek, B., (2014). Tangerine Bank utilizes mobile to transform the future of banking. [Online]. Available Through :< http://whatsnext.nuance.com/customer-experience/tangerine-bank-mobile-virtual-assistant-voice-biometrics-nuance/ >. [Accessed on: 27 December 2014].
- Clark, J. and Gelb, A., (2013). Identification for Development: The Biometrics Revolution. [PDF]. Available Through :< freeassignmenthelp.com.cgdev.org/files/1426862_file_Biometric_ID_for_Development.pdf >. [Accessed on: 26 December 2014].
- Cook, S., (2013). Biometrics are key for secure banking. . [Online]. Available through: <freeassignmenthelp.com.biometricupdate.com/201308/biometrics-are-key-for-secure-banking>. [Accessed on 25th December 2014].
- ECB, (2003). Structural change and growth prospects in Asia – challenges to central banking. [Online]. Available through: < freeassignmenthelp.com.ecb.europa.eu/press/key/date/2003/html/sp030213.en.html>. [Accessed on 26th December 2014].
- Federal Reserve Bank of Atlanta, (2014). Improving mobile security with biometrics. [Online]. Available Through :< http://bankinnovation.net/2014/08/improving-mobile-security-with-biometrics/ >. [Accessed on: 27 December 2014].
- Fire Alarm Company Burned by e-Banking Fraud, (2010). [Online]. Available through: <http://krebsonsecurity.com/2010/04/fire-alarm-company-burned-by-e-bankingfraud/>. [Accessed on 26th December 2014].
- Hansell, S., (2014). Citibank Fraud Case Raises Computer Security Questions. [Online]. Available Through: <freeassignmenthelp.com.nytimes.com/1995/08/19/business/citibank-fraud-case-raises-computer-security-questions.html>. [Accessed on: 28 December 2014].
- Hosseini and Mohammadi, (2012). Review Banking on Biometric in the World’s Banks and Introducing a Biometric Model for Iran’s Banking System. Journal of Basic and Applied
- Kar, A., (2014). MasterCard Beta Program Adds Voice & Facial Biometrics. [Online]. Available Through :< http://bankinnovation.net/2014/09/mastercard-beta-program-adds-voice-facial-biometrics/ >. [Accessed on: 28 December 2014].
- Kithulegoda ,C., (2014). A peek into the future of banking. [Online] .Available Through:<>. [Accessed on: 28 December 2014].
- Michigan and Goldberg, (n.d). Use of biometric technology in developing countries. [PDF]. Available Through <http://siteresources.worldbank.org/DEC/Resources/Policy_paper-biometrics.pdf >. [Accessed on: 26 December 2014].
- PWC group, (2014). Retail Banking 2020. [PDF]. Available Through : < freeassignmenthelp.com.pwc.com/es_MX/mx/eventos/archivo/2014-10-retail-banking-2020-evolution-or-revolution.pdf >. [Accessed on: 28 December 2014].
- Scientific Research, (n.d).. [PDF]. Available Through :< freeassignmenthelp.com.textroad.com/Old%20Version/pdf/JBASR/J.%20Basic.%20Appl.%20Sci.%20Res.,%202(9)9152-9160,%202012.pdf >. [Accessed on: 26 December 2014].
- The Financial Brand, (2013). Banks Accelerate Mobile Banking Innovation. [Online]. Available Through :< http://thefinancialbrand.com/37681/banks-accelerate-mobile-banking-innovation-mapa-research/>. [Accessed on: 28 December 2014].
- Trader, J., 2014. The Impact of Biometrics in Banking. [Online]
- Available at: http://blog.m2sys.com/financial-services/impact-biometrics-banking/ [Accessed 12 October 2014].
INTERVIEW QUESTIONNAIRE AND TRANSCRIPT
- What are the different biometric technologies which are used in the banking domain?
Respondent 1 (India):”In my opinion there are various banks who have been using biometric techniques such as figure print authentication, hand geometry, voice verification and retinal scanning etc.”
Respondent 2 (India): According to me, most of the banks are using finger print scan biometric techniques because they are highly accurate as well as verification time is very less.
Respondent 1 (UK): As per opinion, banks are concentrating more on different biometric system in banking applications such as facial recognition, signature verification, key stoke, hand scan and hand vein techniques etc.
Respondent 2 (UK): I believed that banking sector has used various types of biometric techniques to increase security and perform transaction efficiency in an appropriate manner. Banks generally use iris, retina scanning, figure print authentication, hand geometry, hand vein and voice recognition techniques.
- How would you depict the importance of biometric technologies in banks?
Respondent 1 (India): “As per my view with an updating technology in the present era its importance is increasing in every domain of business. Particularly with respect to banking it has laid down a great importance with respect to security of funds of customer. Banking activities can be performed in a more secured manner by both banks officials and consumers who are undergoing such high tech technological use in their functioning. It protects personal data of customer in a more effective manner.”
Respondent 2 (India): “Being in a financial industry for such a long period I believe that yes biometrics has got some extra importance in the banking system. It is said to be one of the approaches which is highly accurate and a system which has got wide range of deployment environments. Biometric accuracy has enhanced his overall importance in the banking industry, as it is very important to be secured while carrying out banking operations. If there will be any lack of security then it can lead to huge loss to both banking institution and consumer. However, such a system has reduced all fraudulent activities and enhanced the overall performance of banking system”
Respondent 1 (UK):“In my opinion biometric technology has got great importance in the banking industry. It enhance the performance of banking as individuals need not have to worry about carrying plastic cards with them for withdrawing cash from their bank ATM. Biometric technology has helped individuals to reduce their overall burden with respect to remembrance of password that they need to keep in mind while operating ATM machine. However, use of biometric technology has reduced such burden of consumer as their physical presence can help them in carrying out transaction in a most easy and faster manner. Even it has reduced the time in which banking transaction used to incur as it has fasten the overall speed with which banks use to carry out their operations.”
Respondent 2 (UK): “Biometric technology innovation in banking industry has helped a lot in securing the individual money in their accounts. In my opinion it is has laid down a lot of importance because people do not need to remember their password for withdrawing cash from their ATM accounts. Even it helps in reducing hacking of passwords by experts in the field which can lead to greater financial loss to an individual. Many a times it has been seen observed that many specialized hacker tracks password of ATM cards and withdraw entire cash laying down in an account of an individual. Further, it becomes very difficult in tracing such kind of financial loss by banks and consumers. However, innovation of such kind of technology has helped in reducing such kinds of unethical activities and has protected the money of an individual in a most secured manner”
- To what extent do you feel biometric technology increases security in banking domain?
Respondent 1 (India): “In India it is not seen that there is wide use of biometric technology in the banking domain. But still I believe that there is lot of increased security which can be enhanced by deploying such technology in the banking system. Even with the acceptance of modernized era slowly the face of acceptability towards high tech technology in the area of banking industry has began. This is because biometric technique has laid down positive image in the eyes of individual customer of banks regarding its security benefits that it details to a banking institution for protection against various financial data”
Respondent 2 (India): “As per my view this technological system has got wide variety of features for protecting individual funds that are kept in the banks. Biometric technology lays down security in which individual presence is very much important for carrying out any type of transactions from banks, so it has got increased security in banking domain. If an individual with a bank account will not be present then transactions cannot be carried out. It is because biometric tool has got very unique security characteristic in which presence of bank account holder is important for carrying out safe financial transaction”
Respondent 1 (UK):”As per my opinion biometric technology is a system which recognizes individual body parts for carrying out any banking transaction. Hence, it has got significant importance in the area of banking domain by keeping the security level to very high. System has laid down very high security as in each transaction person need to go for thumb impression, retina scan, and face or voice recognition. In each case presence of particular bank account holder is necessary without that it is very difficult for any other member or relative to carry out transaction on behalf of a particular person. It doesn’t function as per normal ATM password number. This technology is very high tech and requires proper authentication of an person who holds bank account in a particular banking institution”
Respondent 2 (UK):“Yes, I feel that biometric technology increases security in banking domain. This is because this system has got varied features which an individual’s need to clear for accessing any transaction from banking system. Proper scanning process is carried out by such biometric tool for getting proper access to carry out financial transaction from bank. It is a high security technology which has lay down great importance for financial transaction in a more secured manner. Its proper use will enhance the overall performance of banks in the industry”
- Which according to you is the most suited biometric technology for you? Why is it the most suitable one?
Respondent 1 (India): “In my opinion fingerprint recognition will be the most suitable biometric technique that can be initiated further in India, as people will be more comfortable in accepting in this system. It has been seen that in a highly populated nation there are many individuals who do not even have their bank accounts and are even illiterate to basic financial aspects that are carried out in banks. Hence, I feel that finger print scan can be one of the most effective biometric technologies that can be used by the banking institution for initiating security and protection of transaction of person”
Respondent 2 (India):”As per me retina scan and fingerprint scan will be the most suited biometric technology that can be use in the banking system. This is because it is difficult for someone to trace retina scan for the purpose of hacking bank account. These are the biometric technique which has got very unique characteristic as no individual can have similar retina and finger print scan to be same. It is the reason why I believe that these are the most suited tools that can be used within the banking industry. Even banks can go for face and voice recognition, but these aspects have some defaults as face and voice of a person can be copied by various experts in the field of this area. Hence, in my opinion retina scan and fingerprint scan are the effective biometric technology that can be use in the banking system”
Respondent 1 (UK):”I believe that every individual biometric system has got their own unique features. However, as per my view face recognition scan can be the best methods that can be adopted in the banking domain.”
Respondent 2 (UK):”I feel that retina scan be the best biometric technique that can be used in banking domain. It is because it can be the most secured way for carrying out banking transaction as every individual has got their own unique retina. I believe that it is one of the biometric techniques which has got very unique characteristic as no individual can have similar retina scan to be same. This is the reason why I believe that it is one of the best innovative technologies which mostly suits the requirement of banking industry.”
- According to you, which biometric technology is most convenient in implementing a biometric based security system?
Respondent 1 (India): “Finger print recognition can be the most convenient method that can be implemented in India concerning biometric based security system. This is because it is cheap and can be accepted easily in the banking industry of India. It is a system which is more economical in terms of expenditure that banking industry will be requiring deploying at their various branches.”
Respondent 2 (India): “For the implementation purpose I believe finger print scan will be most convenient biometric based security system. It is because it is cheaper when compared with other biometric technologies that are present in the market. It is also one of the system that requires very less space concerning for the storage of data in the database of banking system”
Respondent 1 (UK): “As per my opinion both finger print and voice recognition can be the most convenient method for implementing a biometric based security system. Both these techniques are highly protective in terms of security for the protection of transaction that consumer carries out while withdrawing or transferring cash from the bank”
Respondent 2 (UK):“According to me the most appropriate biometric based security system that can be implemented in the banking system can be finger print recognition. It is one of the easiest and cheapest techniques that can be deployed while carrying out the financial transaction by consumer”
- In which banking channels can the biometrics prove to be most suitable?
Respondent 1 (India): “According to my point of view, biometric technique is most suitable in Branch and ATM banking sector in terms of successful implementation of various banking operations such as withdraw cash, fund transfer, cash deposit or other banking operations in a significant manner. With the help of biometric technology this process has become very easy for an individual to carry out their transaction from anywhere and at any time”.
Respondent 2 (India): “As per my view biometric technique can be in used in a banking channel in order to facilitate customers for cash withdrawal, fund transfer, balance check for customers etc. I feel that banks can use it in their mobile and internet banking operations. These are some of the features that can be used by individuals with the help of biometric technology in different channels of their banking operations”.
Respondent 1 (UK): “As per my opinion banks can use biometric in point of sale activity and for verifying and processing credit card transactions in an appropriate manner. These are some of the channel which I believe were biometric can be used in the banking industry. Further, even biometric technique utilization can be made effective in banks as it can help in saving cost which banks need to incur on paper transaction and eliminates password frustration of customers etc”.
Respondent 2 (UK): “According to me, biometric technique will be beneficial for banks in mobile and Internet banking to perform banking transactions such as checking the balance in hand or fund transfer over the telephone etc. With the help of biometric all these activities can be carried out in a most effective manner. Even it helps in reducing manual transactions that banks need to incur while recording transactions. However, using biometric will help in reducing all these manual transaction and all activities be done by this system automatically”.
- While using an ATM, which biometric technology should be implemented?
Respondent 1 (India): “Retina scanning biometric technique should be implemented because in this precautions have to been taken with retina scans to be sure that user is a living human being. It is a one of the best technique innovated in biometric as every individual has got a unique retina identity which helps in enhanced security that an individual can lay down towards banking transactions. In this system presence of an individual will be needed as transactions cannot take place if a person with a bank account will not be present at that point of time.
Respondent 2 (India): “Finger print should be used because it is the most economical biometric PC user authentication technique. It is the technique which is mostly considered reliable as there is no high authentication or precaution required for implementation of such biometric technique. Even it is considered less complicated when compared with other biometric tools that are used in the market. Even it is one of the systems that require very small storage space for template and database storage. Hence, in my opinion I will consider this biometric technique to be more efficient in all terms with respect cost, storage and effectiveness while using ATM.”
Respondent 1 (UK): “According to my point of view, retina scanning will be beneficial for banks ATM because it is the most accurate physical biometric available today since there is no known way to replicate a retina. It even reduces the risk of error that can take place as no other individual can have an identical retina as a human being. Even it reduces the amount of time that a person need to incur for carrying out banking transaction as scan of retina take place within few seconds. As per my opinion it is one of the added advantage that this biometric carries while performing functioning in banking domain.”
Respondent 2 (UK): “As per my opinion, voice verification technique should be deployed in banking sector because it recognizes voice of an individual and on that basis banking transactions will be executed in secure manner. Even it forms a very good security aspects while withdrawing cash from ATM, as every human individual has got high and low frequency pitch while the speak anything.”
- Which biometric technologies should be used for authentication in banking applications?
Respondent 1 (India): “According to me, figure print technique should be used in banking applications because it is one of the most developed biometrics and easy to use.”
Respondent 2 (India): “Hand geometry should be used because it concerned with measuring the physical characteristics of the customer hand and fingers. It is associated most commonly with authorized access and it can uniquely identify a user in a system in a proper manner.”
Respondent 1 (UK): “As per my perception, retina scanning technique can be employed in banks because it emphasized on to identify the unique patterns of the retina of the customers. It is an appropriate tool to conduct financial transactions in every hour a day and in any location, through a website in a secure way.”
Respondent 2 (UK): “According my opinion, hand geometry technique should be used by bank to overcome financial transactions and identity related thefts in a appropriate way. Banks can easily it can be easily integrated this biometric device into other devices or systems in a systematic manner.”
- Are the biometric technologies mature enough to be used in the banking application?
Respondent 1 (India): “I agree with the fact that with development of biometric techniques it is enough to be used in various banking applications such as branch, ATM and POS banking etc.”.
Respondent 2 (India): “According to me, biometric techniques used in banking applications are enough mature as compared to other traditional techniques because it emphasized on security and transparency concerned.”
Respondent 1 (UK): “As per opinion, in global era, technology is changing with pace and in such kind of situation, it is essentials for banks to fulfil needs of techno-savvy customers and provide safety on their banking transactions.”
Respondent 2 (UK): “According to me, biometric techniques are in development phase some improvements are still required to deploy biometric techniques in various banking applications in a secure manner.”
- Could you please sum up the main benefits of biometric technology utilization in banks?
Respondent 1 (India): “The main benefits of biometric techniques are to make secure banking transactions such as withdraw cash, fund transfer, cash deposit or other banking operations in a significant manner. These all activities can be performed easily using biometric technology in banking domain. Even it reduces the manual transaction that banks need to incur. This system records all transactions automatically concerning specific requirement without any error or mistake. Further, even I believed that biometric techniques, help Banks and Financial institutions to protect their reputations and to build and maintain authenticate public trust. It is because if proper security will be given by banks to the hardcore funds earned by an individual then it is automatically going to enhance the reputation of such banking institution.”
Respondent 2 (India): “As per my opinion, voice recognition biometric technique will be beneficial for banks in order to secure point of sale delivery that allows customers or banks to automatic transfer of the purchased amount from the customer’s account to the vendor’s account in a secure and quick manner.”
Respondent 1 (UK): “According to me, finger print biometric tool will be helpful for banks because it provides various facilities to customer to perform banking transactions such as checking the balance in hand or fund transfer over the telephone in an appropriate manner. It enhances the performance of carrying out a transaction as remembering a password for accessing account sometimes become very sophisticated for some individuals. However, with the help of finger print biometric tool remembrance of such passwords gets avoided and it enhances the overall performance of banking transactions. “
Respondent 2 (UK): “I feel that biometric techniques will be beneficial for banks because it provides higher security protection for customers to execute their day to day banking transaction in stipulated time without any interruption or security thefts. It is one of the secured banking system and benefit that biometric technique carries while performing customer transactions. I personally believe that innovation of such system has enhanced the banking performance in a much better way by protecting the banking transaction of individuals in a more secured form. “
- What according to you are the main barriers or limitations in the implementation of biometric technology in banks?
Respondent 1 (India): “According to me, depends on user acceptability and multifactor authentication sometimes can create big issue for implementation of biometric. I feel that the lack of knowledge and understanding of possible benefits and drawbacks of biometric techniques in banking sector is major barriers while implementing biometric in banking sector.”
Respondent 2 (India): “As per my opinion, voice and figure print techniques have still some improvements needed because in some situations biometric is failed to give accurate results such as Voices became weak due to of illness and fingerprint worn with hard labour work or age. Apart from it, available standards and legislation of country negatively affect adoption of biometric techniques in banking services.”
Respondent 1 (UK): “According to my opinion, there is some risk associated with privacy and confidentiality if biometric signature gets stolen or misused as well as matter of security & privacy has influence in using Biometric services. I recognized that some health conscious people are against to use of biometric system due to health related issues such as damage to the human body and ethical concerns from the use of physiological data during banking functions.”
Respondent 2 (UK): “As per my perception, financial literacy and lack of basic education are prohibiting factors leading to non-access of biometric banking services in their day to day banking operations. I feel that religious objections and the culture of banking sector are creating hurdle in successful implementation of biometric system in banking sector.”
- What according to you are the steps that bank officials should take in order to overcome the limitations?
Respondent 1 (India): “According to my opinion, RBI and Bank should create a council to identify and eliminate biometric loopholes that allow risky and abusive practices. Banks should increase transparency in their transactions and try to improve password maintenance, auditing, reporting and record keeping processes. “
Respondent 2 (India): “I agree with the fact that biometric techniques usage has increased in developed counties. However, in developing counties such as India still people and banks do not prefer to adopt biometric techniques in their banking operations as they are not aware about the usage of such high technology in their banking transactions. This can be overcome when banks create an office of biometric at state and district level with expertise and monitoring banking biometric transactions and increase awareness of people towards use of biometric.”
Respondent 1 (UK): “According to me, legal issues and data management related issues concerning the protection of user privacy and right that affect biometric techniques adoption in banking services. These are some of the issues which have always played a crucial role in the area of banking industry. It cannot be avoided as it lays down high tech security of financial data of banks customer. Even deployment of such biometric technology needs approval of various government officials leading to cause strict rules against such system. However, banks can overcome these kinds of issues by taking helps from government and appoint technology experts who are proficient in their core areas. Proper knowledge with respect to the technology must be communicated to the government officials for proper implementation of such kind of system in the banking industry. “
Respondent 2 (UK): “As per my opinion, banks should emphasize to overcome some social and psychological issues about biometric techniques that are creating fear in the minds of customers. Apart from this, banks should focus on effective use of biometric techniques as well as to provide a high level of security by securing the transactions. It will help banks to gain the trust of identity of customers. Proper knowledge with respect to biometric system must be communicated to each individual consumer that is approaching to the banks. It will help them in understanding such a system in a much better way and its acceptability will also increase among such consumer. “