AI-based biometrics, such as facial recognition and voice recognition, are becoming increasingly popular in the financial services industry. These technologies offer a number of opportunities to improve security, user experience, and accessibility. However, as with any new technology, there are also risks associated with the use of AI-based biometrics that need to be considered. In this article, we will take a closer look at the opportunities a

nd risks associated with the use of AI-based biometrics in financial services.

Opportunities

One of the main advantages of AI-based biometrics in financial services is improved security. Biometric data, such as fingerprints or facial features, is unique to the individual, making it difficult for fraudsters to impersonate someone else. This can help to reduce the risk of identity theft and financial fraud.

Another advantage of AI-based biometrics is that it can make it easier for customers to access their accounts. For example, instead of having to remember a password or carry a physical token, a customer can simply use their fingerprint or face to authenticate themselves. This can improve the user experience and make it more convenient for customers to manage their accounts.

AI-based biometrics can also be used for authentication in mobile banking apps, which can increase the accessibility of financial services for people who may not have regular access to a computer. This can help to increase financial inclusion, particularly for people in underserved communities.

Risks

One of the main concerns with the use of AI-based biometrics in financial services is privacy. Biometric data is sensitive information, and if it is mishandled or stolen, it can be used for nefarious purposes. Financial institutions must ensure that they have robust security systems in place to protect this data and to prevent data breaches.

Another concern is the accuracy of AI-based biometrics systems. There is the potential for these systems to make mistakes, such as incorrectly identifying a person, which can lead to inconvenience or financial losses. These systems can also be more prone to errors when used on individuals whose biometric features are harder to recognize such as elderly, children, and people with certain disabilities.

Lastly, there can be ethical and legal concerns with the use of AI-based biometrics. For example, the use of facial recognition technology has been controversial due to the potential for misuse by government authorities, and there are concerns about the potential for bias in the algorithms used in these systems.

AI-based biometrics can offer many benefits in terms of security and user experience in financial services, but it is important for financial institutions to carefully consider the risks and to implement robust security measures to protect sensitive biometric data. At Amani we are aware of all of these risks and opportunities and we always strive to provide our clients with the best service and security possible. If you have any questions, please do not hesitate to reach out to us. We are more than happy to help.