The Future of Biometrics Technology: An Overview by Industry
The Future of Biometrics: A Glimpse at Emerging Trends
The future of biometrics is the future of security technology. Biometric authentication methods such as facial recognition and fingerprint recognition are becoming increasingly popular tools to secure digital transactions while providing customers with a frictionless user experience. Applications of biometrics are growing in industries from healthcare and banking to hospitality and payment processing. As usage grows, biometrics technology adapts to meet security and ethical demands. Here’s a look at some recent trends in biometrics technology and what they mean for the future of security.
What Is Biometrics Technology?
Biometrics technology uses measurable biological features to authenticate digital user identity. Common biometrics methods include fingerprint authentication, facial recognition, iris recognition, and DNA testing. Artificial intelligence frequently is used to analyze data captured through biometrics tools and verify its authenticity. For example, AI can analyze facial recognition data to distinguish a 2D flat image from a 3D live image.
Biometrics methods are used in digital and brick-and-mortar environments where identity authentication is needed. They can be especially useful for confirming the valid use of identification by a live individual presenting credentials for customers whose accounts are already on file. Biometrics also serves purposes such as providing multi-factor authentication, accelerating payment checkout processes, and facilitating contactless payment.
Will Biometric Technology Increase?
According to a report by market research provider Transparency Market Research, biometrics technology usage is increasing, with demand growing in various industries and sectors. Globally, the biometrics market was valued at $39.62 billion in 2021 and was on track to expand at a compound annual growth rate of 13.3% between 2022 and 2031, when it is projected to reach $136.18 billion. Industries seeing high adoption rates include:
- Banking, financial services, and insurance
- Military and defense
- Consumer electronics
Regionally, biometrics use is growing most rapidly in Asia and North America. But Europe, South America, Africa, and the Middle East also are seeing increasing adoption of this rapidly emerging technology.
Why Is the Use of Biometrics Increasing?
Several significant drivers are propelling biometric authentication usage. These include:
- Facial recognition is becoming popular as a means of confirming user identity. Smartphone cameras make it easy for customers to authenticate their identity using selfies.
- Voice biometrics has become a popular tool to authenticate customers who receive help through interactive voice response (IVR) phone systems. Voice recognition provides a quick, automated way to confirm caller identity and pull customer account data.
- Artificial intelligence and machine learning advancements have made it easier to analyze biometric data rapidly, making the technology more practical and customer-friendly.
- Terrorism and cybercrime have increased the need for biometrics as a multi-factor authentication method.
- The COVID pandemic has promoted the adoption of facial recognition as a contactless method of confirming identity.
These trends and others are converging to promote the growth of the biometrics industry. Advances in biometrics technology also help accelerate adoption. For example, while 2D photos could fool early facial recognition systems, newer systems incorporate artificial intelligence analysis to differentiate 3D images from flat fakes. As these advances overcome limitations in biometrics security, barriers to adoption will fall, and usage will increase.
The Future of Biometrics Technology by Industry
Let’s look at how the future of biometrics is unfolding in a few specific industries. Some markets which illustrate the growing importance of biometrics include:
- Payment processing
These industries illustrate some biometrics trends which are spreading to other sectors and transforming the way digital security is done. Here’s a closer look:
The Future of Biometrics in Healthcare
The future of healthcare is poised to see growing biometrics usage due to several factors that encourage adoption. These include:
- Facial recognition has become an essential tool for the authentication of patient identity
- Facial recognition serves to speed up patient check-in and checkout procedures
- Analysis of faces by AI also can be applied to measure patient emotional responses and assist in diagnostics
- Specialized biometrics tools can be used to monitor patients remotely and administer telehealth
- You can integrate facial identification systems with electronic medical records (EMR) to protect digital patient records from cyberattacks
- In addition to facial recognition, other biometrics tools healthcare providers use include iris recognition, fingerprint scanning, and voice recognition
- Biometrics tools help authenticate digital signatures to complete healthcare agreements
All these factors will promote the growing use of biometrics by healthcare providers in the near future. Technological advances, such as integrating facial recognition with iris recognition, will further spur the adoption and incorporation of biometrics into standard workflows and procedures in the healthcare industry.
The Future of Biometrics in Banking and Financial Services
Banking and financial services will see significant growth in biometrics due to several factors:
- Biometrics financial providers meet Know Your Customer requirements imposed by anti-money laundering regulations passed in recent years in response to the rise of terrorism and cybercrime
- Digital banking has promoted the use of biometrics to authenticate the identity of online customers
- Biometrics can provide a more unique and secure identifier than other two-factor and multi-factor authentication methods
- Selfies are used for document and identity verification by a growing number of financial institutions
- At some ATM terminals, facial recognition replaces card swipes as a contactless authentication method
As these applications illustrate, both digital and physical banking procedures incorporate biometrics. Financial providers will increasingly use tools such as facial recognition to secure transactions, meet regulatory requirements, and improve customer service by speeding up security checks.
The Future of Biometrics in Hospitality and Travel
Hospitality and travel are other industries that have taken a leading role in the adoption of biometrics:
- Biometrics has become an essential part of airline security passenger authentication in response to terrorism risks
- You can incorporate biometric features into government-issued ID cards for purposes like passports
- Airport security terminals have adopted facial recognition technology as an efficient way to verify passenger identity while providing passengers with quick security check-ins
- Facial recognition speeds up access to other airport services, such as car rentals
- Hospitality providers are using biometrics to let guests check in through selfies
- Facial recognition can confirm guests presenting selfies are using live photos and not fakes
- Once guests have been onboarded through facial recognition, you can use stored credentials to provide streamlined access to additional services and repeat bookings
- Facial recognition can help facilitate contactless payment options
- Easy payment options help reduce shopping cart abandonment rates for items such as luxury sheets and bathrobes, which many guests purchase during checkout
- Photo authentication helps prevent chargebacks by serving as proof of guest check-ins
As these applications illustrate, hospitality and travel have become significant drivers of the biometrics market and will continue to promote biometrics growth in the future.
The Future of Biometrics in Payments
Present trends in payment processing foreshadow the growing role biometrics will play in everyday transactions:
- Mastercard recently launched a program that allows retailers to accept payments transacted through biometrics methods such as facial recognition or fingerprint scanning.
- Biometric log-in methods can help offset password overwhelm by serving as alternatives to passwords.
- Biometrics authentication methods such as facial, iris, fingerprint, and voice recognition can replace PIN numbers for multi-factor authentication.
- Digital customers can use biometrics to secure online account access and shopping cart transactions.
- Online lenders can use biometrics authentication to verify customer identity and comply with Know Your Customer regulations while providing expedited service.
- You can use biometrics to accept payments in metaverse environments such as virtual reality and augmented reality interfaces.
These biometrics tools are already in widespread use in the payment industry. As time goes on, they will become increasingly integrated into standard payment processes.
Prepare for the Future with Incode’s Reliable Biometric Authentication Platform
As biometrics usage continues to increase and adapt, keeping up with the latest technology will become critical for maintaining digital security and staying ahead of competitors. The Incode Omni platform provides you with cutting-edge biometrics as part of an end-to-end identity authentication platform that secures your transactions while delivering a frictionless customer experience. Omni’s facial recognition and fingerprint recognition software come complete with a full range of authentication tools that integrate easily with your workflow so you can have biometric security checks up and running in hours. Omni serves various industries, from eCommerce, finance, and retail to travel, hospitality, and event experiences. Contact our team to request a demo and see how our biometrics authentication tools can help you deliver a fast, secure experience to your customers.