In 2013, the National Identity Management Commission (NIMC) incorporated the biometrics feature for its National Identity Card Registration. The biometrics upgrade to e-banking has become a valuable asset for a safe and secured banking experience.
An overview of its history
A little trip down memory lane shows that eleven years ago, in 2011, the First Bank of Nigeria (FBN) installed the first biometrics Automated Teller Machine (ATM) with extra features like an iris and fingerprint scanner.
In 2018, SterlingPro Business Applications, a Nigerian IT firm, developed an application that supports biometric access for cash withdrawals in ATMs. It was adopted a year later, first by Guaranty Trust Holding Company Plc (GTCO). Subsequently, it got introduced to other banks.
However, this innovative solution to secure and seamless ATM withdrawals remained in silos with individual banks.
Also, it is important to note that the initial purpose for the installation of biometrics for ATMs has transcended: It is not only for older citizens who are not tech-savvy but for authentication of identity, secure banking experience, and fast withdrawals. By replacing the four-digit pin system with a body identity, which is easily accessible, anyone can access the ATM and use it with little or no assistance.
Biometric ATM – A view of its significance & Doubts
The significant leap from ordinary ATMs to Biometric ATMs cannot be denied; perhaps the integration has been valuable to e-banking—the next step to seamless withdrawals.
Following the development of Biometric authentications for Atm withdrawals for financial institutions, the financial sector has since gone through a major overhaul for biometrics ATM withdrawals. It is paramount to note that withdrawals have been made easy, and access to the multitude with the invention of biometrics in ATMs.
However, even with its numerous benefits, this upgrade also came with challenges. Some of the challenges are as noted:
- The lack of a strong internet connection may impede the easy usage of the biometrics on ATMs
- Fear of data breaches – Biometric databases can still be hacked
- Tracking and data – Biometric devices like facial recognition systems can limit privacy for users
- Bias – Machine learning and algorithms must be very advanced to minimise biometric demographic bias
- False positives and inaccuracy – False rejects and false accepts can still occur, preventing select users from accessing systems
- Lack of access to multiple authentication transactions on ATMs, PoS across multiple financial institutions – You can only use your biometrics in the bank you registered in.
Challenges surely would require some solutions, and we have IT firms working hard to provide solutions to some of these challenges. We should note that a biometrical ATM was the next step to seamless ATM withdrawals, yet it cannot be the only step.
Interswitch’s biometrics authentication solution across multiple institutions
The next step to secure and seamless ATM withdrawals is unlimited access across multiple financial institutions. Notable is the effort of Interswitch, leading African integrated payments, and digital commerce platform company, in providing a solution that delivers this possibility.
Daily transactions can be easy, safe, and guaranteed with just our fingerprint. Interswitch understands that biometrics are undoubtedly the most suitable means of reliable and prompt identity verification and authentication, leveraging unique biological characteristics. With Interswitch’s biometric authentication solution, the lack of access to transactions on ATMs and PoS across multiple financial institutions aside from a customer’s primary bank has been resolved.
Interswitch’s solution provides Interbank Biometric Authentication, which provides bank customers with a method to use their biometrics at any financial institution aside from where their biometrics are registered. Customers don’t have to worry about access to financial services if they are in an area where their bank is not situated.
This solution incorporates extensive expertise in transaction Switching and Processing, maintaining transaction integrity and security, monitoring, dispute resolution, settlement, reporting, reconciliation, and finality, thereby ensuring data integrity and safety.
This is not the only solution Interswitch has provided, as many of its other solutions significantly solve e-banking and electronic payments challenges such as Card Fusion that gives banks and branches full control over card production processes and efficient portfolio management. There are other solutions like tokenisation to further ensure secure and seamless payment experience.
However, the Interbank biometric authentication should be identified as the next step after the biometric ATM because it enables transactions on different banks.
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