Biometrics are Mainstream in the Exhibition Hall But Attendees Have a Limited Understanding While it was a given in the exhibition hall that biometrics are an integral part of digital transaction security in the financial services realm the solutions offered are still far ahead of the customers per ceived needs and in many cases basic understanding In a world where digitally-based fraud is exploding the lack of urgency around implementing truly human identity-centric solutions in the broader financial services community remains disaapointing and somewhat unsettling The level of questions posed to the two extremely well attended biometric panel sessions on Sunday afternoon clearly indicated that while biometric market interest is soaring market education remains a key consideration for the industry Even in the sophisticated world of fintech where there seems to be a new conference every week the overall understanding of what a biometric is how it works what the real and distorted data management and privacy issues are and how to differentiate between on-device and cloud-based solutions remains elusive to far too many Frictionless Customer Experience is the Holy Grail NOT Biometrics were near universally heralded in the Exhibit Hall and many panel sessions as a key enabler of the frictionless customer experience the apparent aim of nearly every vendor and financial services provider at Money2020 However upon reflection as part of a deeper and more complex conversation about risk-based models desired levels of customer feedback and differentiating between identification and verification and on-device and cloud most players admit that eliminating ALL friction is not really the goal In fact the real gaol is to determine and apply the appropriate level of friction based on the type of transaction the value and the risk involved It was easy for me to question my way with vendors hawking their frictionless wares to arrive at a clear understanding of what they actually meant The typical conference attendee however would likely not have been able to make these distinctions and would be left with at best a misguided understanding of the true role for and power of biometrics Again even though it will make industry insider heads explode I have just three things to say about this state of affairs Market Education Market Education and Market Education Big Banks Are Slow Movers while Mid-level Banks are Not Convinced they have a Problem Biometrics Can Solve Large banks and financial services organizations seem to clearly recognize they have a fraud and related identity problem that biometrics can help address They appear committed to change but incremental change that does not dramatically impact the overall market infrastructure their position in it or their existing physical and digital infrastrucure Meanwhile mid-level banks that are structurally more flexible and therefore able to incorporate biometric-based identity solutions more easily and reap genuine rewards remain skeptical It is not clear if this is just typical financial services resistance to change the inability to recognize the depth of the challenge they face or just overwhelm in the face of technology that they are unfamiliar with It took forty years for ATMs to become mainstream likely for similar sets of institutiaonl reasons Unfortunately established financial services organizations large and small dont have the luxury of waiting forty years for the fintech revolution to take hold Innovation is spreading across developing economies where urgency is high and barriers to adoption are either low or simply do not exist In many of these locations biometric-based solutions are enabling the secure delivery of financial services to those previously unable to access them the worlds more than 2 billon unbanked These markets are living laboratories for biometric solutions that may very well radically reshape the global financial services market and potentially disrupt the existing major players out of their positions of dominance or even existence Even as GDPR and PSD2 secure and reshape the European financial services ecosystem opening the door for digital innovation the United States market where many global leaders are based seems ill prepared for the level of transformation and associated disruption that is happening now in the financial services realm Time for a New Name When this innovative event the Granddaddy of fintech conferences was launched in 2012 2020 seemed a lifetime away Given the pace of technology evolution an eight year window for transformation seem appropriate Now with four global events on three continents the still nascent state of the burgeoning fintech market and the end of the decade upon us perhaps it is time for a rebranding Money2030 here we come biometric biometrics payments mobile mobility money mobilebiometrics Acuity makes the case for Cloud biometrics in Taming the Authentication Beast Simplifying and Enhancing the Customer Journey with Biometrics in the Cloud Download the whitepaper at wwwacuity-micom CloudFSphp Biometric transaction forecasts and analysis of the mobile biometric market are available in Acuitys The Global Biometrics and Mobility Report at wwwacuity-micom GBMR_Reportphp __________________________________________________________________ C Maxine Most is the Principal and Founder of Acuity Market Intelligence http wwwacuity-micom an emerging technology strategy and research consultancy with a proven record of accurately anticipating biometric and digital identity market trends Follow Maxine on twitter cmaxmost Contact Acuity Market Intelligence 1 303 449 1897 info acuity-micom Filed under Biometrics Disruption Fintech Market Development Market Insight Mobile Biometrics Payments No Comments