by Shraddha Singh

Indian banking sector bets big on biometrics

Aug 25, 2016

Forget your password and complicated bank forms. Indian banks are presenting a whole new range of biometrics for hassle-free transactions.

Biometrics is not a new phenomenon in the country, but Indian banks are going to great lengths to use biometrics to its full potential. Fingerprints, voice pattern, iris scans and facial geometry are widely used for biometric recognition. According to a TechSci report, the biometrics market in India will grow at a CAGR of 31 percent from 2016 to 2021 and will surpass $3 billion by 2021.

Biometrics is not only highly secure but also cost effective for banks. It lifts the burden of remembering passwords, PINs and card numbers.

IDG takes a look at how biometrics is driving banking in India:

DCB Bank: DCB Bank has set up ATMs that require your fingerprints to withdraw money. The ATM operates using Aadhaar card data and links a customer’s fingerprint data with his Aadhaar biometric details.  These biometric ATMs are available in Bengaluru, Mumbai and Chennai.  However, this service can only be availed by DCB Bank customers.Federal Bank: Federal Bank has introduced a zero balance selfie account. A person can now download the Feedbook app from the Play Store or App Store, scan their PAN card and Aadhaar card and click a selfie to open an account instantly. Once the account is opened, the app will turn into a passbook.HDFC Bank: HDFC Bank is reaching out to rural areas which don’t have ATMs through a hand-held device or a micro ATM with biometric verification. It uses Aadhaar card and fingerprints for biometric verification for instant KYC (know your customer) check. HDFC has tied up with Gramin Banking Officers (GBO) to provide this facility in Punjab.ICICI Bank: ICICI Bank introduced voice recognition for its customers to transact smoothly through the bank’s call center. Customers are no longer required to enter their PIN and card number as their voice will act as the password now.  The voice recognition technology authenticates based on speed, accent and pronunciation, which are unique to every individual. State Bank of India: SBI uses a biometrics authentication application that incorporates fingerprints and biometric matching software to verify bank employee credentials before they access its core banking system. The bank will install this system across 21,000 locations.