How Biometrics is Changing the Status Quo; From Traditional Industries to Modern Ecosystems Like Blockchain and Crypto

By Stan Peterson
Published November 27, 2021 Updated November 27, 2021
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How Biometrics is Changing the Status Quo; From Traditional Industries to Modern Ecosystems Like Blockchain and Crypto

By Stan Peterson
Published November 27, 2021 Updated November 27, 2021

Biometric identification has become a popular way of granting authenticated access to various ecosystems and services. At its core, this form of identification involves the analysis of an individual’s physical or behavioural characteristics to authenticate their identity before granting access to a specific platform or service. Some popular techniques used for biometric identification include fingerprints, voice patterns, facial features and behavioural characteristics. 

With the world adopting remote working environments, biometric identification has surged within the past year. According to a recent analysis by KPMG, 38% of the firms globally have increased their spending on biometric identification systems by 20-39% in the past year. Meanwhile, 16% have gone a notch higher to increase spending by 40%. This trend is expected to gain more traction as more companies and industries adopt biometric identification systems. 

So far, several sectors appear to be quite ahead in the integration of biometric identifications. While most of them are traditional industries, nascent niches such as the crypto industry have also joined the bandwagon. The next section of this article highlights some sectors where biometric identification is playing a fundamental role in forging the future. 

  • Automotive Industry 

The automotive industry is one of the sectors at the forefront of adopting biometric identification. Statistics from the CB Insights’ Industry Analyst Consensus show that the global automotive biometric identification market is expected to hit $303 million by 2024. This will mark an annual compounded growth of 17% from 2019. 

As it stands, most of the world’s leading car manufacturers are in the process of integrating biometric identification in their models. Hyundai, for instance, has already integrated a fingerprint biometric identification that allows car owners to unlock and turn on their vehicles through fingerprint scanning. 

Emerging startups such as Affectiva are also building biometric solutions that prevent drivers from being distracted while on the road. The startup has developed a driver monitoring software that leverages physical features, showing whether a driver is alert at any point. 

  • Financial Services 

Financial services have long been the pillar of today’s markets. However, the increasing fraud rate in recent years is forcing more firms in this sector to adopt biometric identification to protect their consumers. According to Mastercard, this growing trend is not only an initiative of the financial service providers but also a result of demand from consumers. 90% of market participants now prefer biometric identification over passwords. 

As for the integrations, leading banks such as Citi are some of the earliest players to offer biometric identification. The bank began leveraging voice identification as early as 2016 to verify its clients’ identities. Meanwhile, Citi’s competitors, including USAA, HSBC and Chase, have adopted Apple’s FaceID feature to enable clients to access their mobile banking apps securely and seamlessly. 

  • Blockchain and Crypto 

The blockchain and crypto industry is perhaps one of the fastest rising modern-day ecosystems. Stakeholders in this niche are not taking anything to chance given the security vulnerabilities in Decentralized Finance (DeFi). As far as biometric innovation goes, some crypto projects are solely focused on addressing the underlying authentication and identification challenges. 

One of the leading innovators in this space is Avarta, an ecosystem designed to provide crypto companies and users with established authentication standards and proof of identity. Avarta features an advanced security enabled identity wallet, enabling crypto users to access multiple chains while retaining control of their private keys. Notably, this biometrically-secure digital wallet uses one’s facial features as a private key. 

Going by the increasing attacks on DeFi protocols, biometrically-secure wallets such as Avarta’s propose a significant value proposition in protecting crypto users’ funds. Avarta also features a multisig function, enabling corporations and legacy planners to leverage its digital wallet. 

  • Border Controls 

International Borders are some of the highly guarded areas in the globe. Biometric identification has long been used by border control authorities to check against criminal record databases. While fingerprints have been the predominant technique, some rogue characters have found ways to evade border controls despite having prior criminal records. 

Thanks to advanced biometric identification techniques like the iris scan, border control authorities have also upped their game. For instance, developed countries like the U.S, Canada and the U.K have integrated facial recognition features and iris scans in some airports. Going by the rate at which countries are investing in border control security, it is only a matter of a few years before the trend becomes a global standard. 

  • Healthcare 

The healthcare industry stands a chance of being one of the biggest beneficiaries of biometric identification systems. With biometric data, hospitals can identify emergency patients faster, saving time that would have otherwise cost a life. New York-based Northwell Health is one of the leading healthcare service providers that has adopted iris scans to enable a seamless identification of patients. 

Besides identification, biometrics can also help keep patients’ data private, with only authorized parties being granted access to the information. While not much integration has happened as expected, it is a no-brainer that the healthcare industry should integrate biometric solutions to prevent errors such as wrong prescriptions and patient fraud. 

Summary 

As highlighted throughout the article, biometrics are changing the nature of traditional and modern industries. This form of identification makes it secure for people to access services and specific platforms and eliminates the hustle of having to remember one’s passwords. That said, a combination of biometric identification and passwords is perhaps the best approach to secure the operations of various companies and industries. 

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Stan Peterson
756 Articles
Being an active participant in the Blockchain world, I always look forward to engage with opportunities where I could share my love towards digital transformation.