How FinTech and Biometric Authentication Are Changing the World

As technology takes over every aspect of our lives and much of our personal information databases move online, cybersecurity becomes more and more of an issue. The danger is real and growing (cybercrime cost $500 billion in 2015 and that cost will rise to $2 trillion by 2019) and this is becoming a major issue that needs to be addressed. We want the convenience these new systems offer, but we also need to be sure that our information is safe as it moves its way across the web. Solutions are offered (which is why our passwords have changed from PASSWORD and 12345 to WZ48%$90) but so far these stopgaps have shown to be more of an irritation than a final solution.

FinTech knows this and is constantly working on technology that will improve our (financial) lives. The next breakthrough: biometrics. This technology is set to completely change the authentication process, making it much harder for criminals to steal identities and the personal information that comes with them.

Biometric authentication is slowly infiltrating the financial system and will be the main source of identification by 2020. This is good news for FinTech startups that are offering biometric solutions, as they will find themselves set up to offer must-have services to the market at large.

SayPay Technologies, for example, uses its unique technology (Interactive Voice Recognition (IVR)) to provide voice-activated biometric services to its clients. When seeking to complete a financial transaction, users are given a voice token (i.e. a series of numbers) and say the numbers to verify their identity. If the voice signature matches, the transaction is accepted. This system is set to turn the password system on its head and save people from the hassle of having to remember an endless number of nonsense passwords.

Another option is the Nymi Band. This product, worn on the wrist, uses an Always On Authentication system to validate the user’s identity through a heartbeat identification system (HeartID) or a fingerprint identification system (Touch ID). As well, as it incorporates the FIDO Universal Second Factor system, it can be used to authenticate compatible services. In essence, the Nymi Band replaces car keys, door keys, even PINs. No longer do users have to worry about theft, as all identification is directly tied to their unique body traits.

These startups show just how amazing FinTech advancements are making our world. After all, technology is a double-edged sword, bringing with it both convenience and new levels of crime and cybercrime, and we need new systems to keep our lives safe from these various dangers. Biometric authentication is making security easier for everyone involved and FinTech is embracing this technology.