Consumers warm to fingerprint technology for accessing online bank accounts securely

Credit reference agency Equifax said a survey of 2,090 UK adults conducted on its behalf in February by YouGov found that nearly as many consumers would prefer to use fingerprint recognition technology as those who rate passwords as their preferred security method for gaining access to financial accounts online.

According to the study, passwords are the preferred security method for 32% of UK consumers, with fingerprint recognition technology preferred by 31% of those surveyed. Fewer than a quarter of respondents (21%) said they prefer answering security questions, whilst 3% favour voice recognition solutions.

Equifax said that 45% of consumers surveyed said that having to remember passwords and security answers frustrated them when using the websites of banks and other financial service providers. A quarter of respondents said they get frustrated at having to use additional devices to login into online financial accounts, it said.

Earlier this year, the Royal Bank of Scotland (RBS) and NatWest enabled fingerprint login for UK mobile banking customers in a first for the UK banking market. At the time, RBS said the banks were responding to customer demand for fingerprint login technology.

John Marsden, fraud and identity expert at Equifax, said: “While fingerprint and biometric technology usage in the financial industry is still in its infancy in the UK, the research shows that customers view it as a secure method of verifying their identity. The public is ready to embrace fingerprint recognition and it is important that financial providers act accordingly." 

“As technology evolves, we are seeing a shift in security preferences online. New biometric technologies could potentially see traditional means for authenticating identity online, such as passwords and security questions, become a thing of the past. Using fingerprint technology helps protect customers without the need to remember multiple passwords and pin numbers, while speeding up transactions and making the process more seamless," Marsden said.

There are currently moves to develop a new, more efficient system for verifying internet users' identity when they seek to open new accounts with financial service providers or purchase a financial product.

The Savings and Investments Policy project (TSIP), a coalition of 50 entities from across the financial services industry established by the Tax Incentivised Savings Association (TISA), is in the process of developing a new 'digital passport' for financial services customers.

Validating the identity of customers is a necessary part of financial services companies' operations as a result of their 'know your customer' (KYC) and anti-money laundering obligations.