From securing smartphones and vehicles to aiding law enforcement, biometric technology empowers a diverse range of industries. Beyond its attempt to enhance security, biometrics increase the efficiency and scalability of companies. The global market for biometric security system stood at $30.77 billion in 2022. It is projected to grow at a Compound Annual Growth Rate (CAGR) of 13.9%, reaching $76.70 billion by 2029. Although the pandemic negatively affected this technology trend due to physical barriers, it is still going strong. This post explores the applications of biometric authentication system in various industries and explains how they can standardize security operations across all sectors.
Biometric Authentication System and Biometric Identification
Biometrics refers to the recognition of physical traits of humans, for instance, fingerprint, voice, and facial features. In this regard, biometric ID is used in authentication and identification. Biometric user authentication is the most widely used application, as it powers the security of modern smartphones and vehicles. The system first records the user’s unique physical characters through digital data. In the next instance, when the user tries to access the device, their features are matched with the stored data. Therefore, the user only gets access if the digital data matches the physical attributes.
On the other hand, biometric identification aims to uncover a person’s identity. When biometric data (fingerprint, voice, or face picture) is applied to the system, it compares them against a database.
Exploring Applications of Biometric Identification
In recent years, the role of biometric recognition is increasing in the day-to-day security of consumer devices and corporate products. Regarding consumer devices, the aim is to limit access to a verified user. Whereas in the corporate sector, biometric identity helps secure the entire system and proactively uncover potential threats to the business. During the peak of the Covid pandemic, touch-based biometric identification system saw a decline. However, touchless biometric solutions saw an increase due to the rising need for mobile wallets and contactless card payments. According to a survey by Strawhecker Group, the demand for such solutions increased by 37%. Nowadays, biometric identification is enabling security and access in various industries, as discussed below:
FinTech
Due to the increasing consumer demand for digital products, digitization in financial services and banking is moving rapidly. Using manual verification methods to onboard customers and verify their identities is no longer viable for these institutions. Moreover, financial fraud and scams are at their highest due to the nature of digital banking. According to FTC, nearly 1 in every five people reported a financial loss due to identity theft. Biometric identification in FinTech enables banks to identify customers and secure financial transactions. Besides fingerprint biometrics, facial recognition is heavily adopted in the banking sector to further secure the digital onboarding process.
Healthcare
The healthcare industry stands to benefit the most from biometric identification. In 2021, there were 336 healthcare fraud cases. According to the National Library of Medicine, 7000 to 9000 people die annually in the US due to prescription errors. Biometric technology enables hospitals to streamline the customer identification process in emergencies. Similarly, correct identification reduces prescription errors and ensures healthcare funds reach the appropriate people.
Border Control and Aviation
Biometric identification, especially fingerprints, has been widely used by border control and the aviation industry to verify the identity of travelers. Certain countries plan to introduce self-serving biometric identification kiosks to ease the passage. Moreover, US airports are considering using iris scanners to further enhance security at travel points. Currently, biometrics supplement the manual verification process at border control. In the future, this technology could replace passports as the default method for verification.
Hospitality and Tourism
Biometric identification is gaining popularity in the hospitality and tourism industries. Facial verification provides instant verification and check-in services when the customer enters a hotel or rental service. On the same note, data collected through these solutions can also be utilized to provide personalized care and services to people. For instance, restaurants can use these services to recommend preferred dishes to their customers. Apart from hotels and related businesses, rental services can also utilize biometric identification to verify tourists and provide hassle-free service.
Future Outlook of Biometric Identification
As industries continue adopting biometric identification to benefit businesses and users alike, company leaders must be increasingly aware of the current demands. Providing security at the cost of customer experience can negatively affect a company’s reputation. Therefore, strategic leaders should adopt biometric identification solutions that reduce the friction in customer onboarding. Moreover, the solutions should be transparent about data collection and processing methods to ensure customer privacy.
