Financial institutions are increasingly looking at embedding
biometrics into their know your customer (KYC) and client due
diligence (CDD) workflow. But rules surrounding personal data,
privacy and cybersecurity could be in the way.
According to a market participant on the compliance space,
while digital identities using biometric technology will enable
financial institutions to improve customer identification and
authentication through a streamlined process, which will
automate and reduce onboarding costs and wait times, there are
a host of hurdles that lay ahead.
Clarice Yue, counsel at Bird & Bird, said that from an
anti-money laundering (AML) perspective, biometrics is crucial
for two stages of the banking process: enrolment of new
customers and verification of banking transactions.
"The gambling hub of Macau
has also implemented facial recognition scans at
Facial recognition technology – from facial
recognition software to fingerprint identification, iris
scanning to voice recognition - is used to allow banks...