The (Banking) World at Your Fingertips: The Rapid Rise of Fingerprint Biometrics in the Banking Industry
Just a few years ago, the thought of being able to use your fingerprint to gain access to your bank account through your mobile phone seemed like pure science fiction. Fast forward to 2020, and fingerprint-based biometrics are now widely used by companies of all types, including those in the banking industry. At the same time, fingerprint biometrics carries with it sizeable security risks and challenges, which have prompted attempts by legislators across the U.S. to impose stringent requirements and limitations on its use.
Adding to the risks and challenges of this popular form of biometrics is the fact that fingerprint readers have become far and away the number one target for class action litigation brought under new stringent biometric privacy laws. Financial institutions utilizing fingerprint biometrics must be cognizant of the challenges, risks and potential legal liability posed by this technology and take proactive measures that both minimize risk and comply with the law.
Biometric Fingerprint Technology: How it Works
Biometric fingerprint technology involves the process of using ‘biometrics’ (i.e., individual physical characteristics) to scan a finger and identify its geometry by measuring length, width, thickness and surface area. These measurements are then converted into a mathematical algorithm known as a digital template and stored in a database. During this process, however, no actual fingerprint image is ever created. To identify or verify a fingerprint, an algorithm compares the new template created from the extracted data points of the fingerprint that has been placed on a biometric scanner with a previously stored digital template. In total, the entire verification/ authentication process takes approximately one second.
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“The (Banking) World at Your Fingertips: The Rapid Rise of Fingerprint Biometrics in the Banking Industry,” by David J. Oberly was published in July 2020 edition of CeFPro Magazine, a publication of the Center for Financial Professionals.