As expectations around how financial institutions manage mobile identity change, retailers who may want to offer mobile payment should take note.
A new report from Telstra showed more consumers see using biometrics as identification makers as safer and more secure than usernames and passwords and the majority of U.S. consumers using mobile banking applications want their mobile devices to instantly recognize them via biometrics, such as fingerprint and voiceprint.
According to Telstra’s “Mobile Identity – The Fusion of Financial Services, Mobile and Identity” report, with smartphones now the primary channel used by Gen X and Gen Y to access and manage their finances, expectations around how financial institutions manage mobile identity are being transformed.
“For the last six months, we’ve spoken to consumers and banks all over the world, in an effort to understand how our relationship with our smartphone is affecting our relationship with our financial institutions,” said Rocky Scopelliti, global industry executive for banking, finance & insurance, Telstra. “What we uncovered is that when it comes to mobile banking applications, consumers no longer believe in just the safety of passwords and usernames. Instead, two-thirds of U.S. consumers think that using biometrics—such as voice, fingerprint, iris and facial recognition—would be more secure and help reduce the risks of fraud.”
“In fact, one in four U.S. consumers would even consider sharing their DNA with their financial institution, if it meant it would make authentication easier and their financial and personal information more secure,” he said.
While the study focused on banking transactions, if customers become comfortable with biometrics as a safe way to identify themselves, it could be only a matter of time before it finds its way to other industries.
