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What Will It Take for Biometric Technologies to Finally Take Off?

What Will It Take for Biometric Technologies to Finally Take Off?

While adoption of biometric technologies by the financial services industry has been slow to date, new circumstances are causing many institutions to give this technology a second look.

Boston, MA, January 3, 2006 – In a new report, What Will It Take for Biometric Technologies to Finally Take Off?, Aite Group examines the current security environment at most financial institutions and the factors driving new interest in biometric technologies. It also explores how the technology is currently being used and the potential for different applications at the customer level.

Today, only about 5%-7% of financial institutions in the United States have deployed biometric technologies. While that number has remained low throughout the last decade, this technology is well positioned to take off over the next few years. In fact, consumers can expect to start seeing more of this technology at the point of sale in retail stores, as well as at branches at the teller station.

 

"New drivers, such as advances in technology and recent guidelines set by the FFIEC for stronger security during high-risk online transactions, may be just what biometric technologies need to finally go mainstream," notes Christine Barry, a research director with Aite Group and author of the report. "Doors are certainly being opened, but its success will be dependent on whether or not the technology's developers are able to squash concerns about solution reliability, privacy, and cost."

 This is a 30-page Impact Report. Clients of Aite Group's Retail Banking, Wholesale Banking, and Wealth Management services can download the report.