James Uberti headshotA Question And Answer Session With James Uberti Of TouchCredit

January 22, 2003

 

BiometriTech Publisher Rich Tehrani questions TouchCredit Founder, Chairman, and Chief Architect James Uberti about future trends in the biometrics industry.

Q: It has been said that besides the government, the financial and healthcare markets are two of the strongest areas for biometrics growth in the future. Do you feel this is an accurate assessment and if so, why?

A: Absolutely. The financial and healthcare industries, especially in the realms of Internet access, e-payment and access to confidential patient records, are faced with the challenge of providing true user authentication. Providing the ability to biometrically secure and simplify these processes with a strong user application has enormous potential for these industries. Two of the major benefits gained from the deployment of biometric technology for these verticals include enhanced security and accessibility to personal information on or offline.

Security and trust are the cornerstones of a financial institution's existence. The inadequacies of current systems, primarily password protection, have forced the industry to investigate new technologies to enhance current security methods and replace those most susceptible to fraud. In addition to security benefits, biometric tools are becoming increasingly attractive to financial institutions given their improved accuracy, greater availability, changing consumer attitudes and reduced price.

For an industry required to secure personal information such as health records, biometrics aid in complying with the Health Insurance Portability and Accountability Act (HIPAA), which requires new levels of security, portability and access control. Strong user authentication means that only the individual with the matching biometric will be permitted access to computers and networks, thereby ensuring the integrity of an individual's health information. Biometrics will also allow physicians to retrieve patient records online by simply capturing a biometric scan of the patient.

Q: Tell me about consumer acceptance of this technology. Are we moving in the right direction?

A: Definitely. Consumer adoption is gaining early momentum. A recent US government funded survey conducted by Search.org determined that 85 percent of consumers would accept the implementation of biometrics to improve the security of credit card transactions. As many as 78 percent indicated they would agree to the use of biometrics in making ATM withdrawals. The Search.org survey also reported that five percent of respondents had already given a measurement for biometric comparison.

Despite consumers' approval of the use of biometrics, one of the greatest challenges to gaining broad acceptance and adoption is associated with the dissemination of hardware devices to end users. Although analysts agree that biometrics is the next logical step in providing secure solutions, they suggest it will take time to integrate and deploy biometric technologies on a large scale, projecting a three-to-seven-year timeframe for mass adoption. One approach to decreasing this timeframe is to utilize software that works with existing hardware devices to capture live biometric data. Examples include: Standard keyboards, which can be used to capture one's unique typing rhythm; or a microphone, which can capture the live voice pattern of the individual.

Q: Does TouchCredit anticipate resistance from consumers?

A: As we expect, some resistance will arise due to concerns related to privacy. However, if trusted institutions take the lead in offering biometric applications, the security and convenience associated with biometrics will help ease fears and aid in overall consumer acceptance. According to an April 2002 report conducted by the Gartner Group, the majority of consumers do not trust technology companies such as AOL or Microsoft to deliver online identity and authentication services, although many would consider similar services offered by financial institutions. This report indicated that 47 percent of consumers said they would put their trust in banks, followed by 12 percent for Microsoft.

Since TouchCredit's identity-processing platform easily integrates into existing legacy systems and in no way compromises privacy, we believe that our suite of e-payment solutions, BioCredit and BioDebit, will be embraced by our financial institutions' clients, as well as consumers. As indicated in our pilot studies and user tests, we are receiving an overwhelming response and demand for our products and services. Software tools, which assist customers in filling out repetitive forms and remembering passwords, while allowing online access to personal and private information with a touch of a finger or sound of one's voice, are quite intriguing. The ability to offer peace of mind, while simplifying the online experience, is the main driving factor that will propel adoption of this technology.

Q: Credit card theft and identity theft are on the rise. Do you feel that biometrics-based technology will reverse this trend?

A: Not immediately, as it will take several years to fully reverse this trend given the time it takes to convert and upgrade existing systems. However, in the short term, participating banks and merchants will mostly benefit from biometrics functioning as a strong deterrent for fraudsters at the implementing enterprise.

Q: In the real world, can you explain to me how TouchCredit can help eliminate the above problem?

A: Currently, Internet businesses and consumers on one end of a transaction cannot be certain who is on the other end of that transaction, and vice versa. TouchCredit's platform plugs this hole in the information security pipeline by integrating a robust biometric verification and identity processing system at the financial institution or merchant levels.
The technology first authenticates an online applicant in real time by utilizing a unique identity quiz called IDAssure, which eliminates the possibility of a biometric device being registered with a false identity. Once the applicant is authenticated, TouchCredit then captures live biometric data with its identity-processing platform by utilizing existing hardware devices (i.e. keyboard or microphone). This process greatly increases the security and integrity of an unknown online identity and the assurance that the account holder is indeed present and authorized at time of purchase or access.

Q: Does the integration of a biometric solution become too expensive and prohibitive for financial institutions to "cost justify?"

A: Implementation costs have lowered, biometric devices have become more affordable, and accuracy has improved. At the same time, online fraud and piracy are increasing at an alarming rate. The burgeoning volume of Internet transactions has prompted some to look for better means to determine who is at the other end of the wire. The best solution would be seamless to both merchants and institutions and would not require dramatic changes in the way payments are processed. Making major changes in the way payments are processed would be extremely costly and would slow adoption of any technology for financial institutions as a result of the established legacy systems already in place. Consumers will have to be given incentives to download biometric software. These incentives include offering software for balance transfers, online purchase guarantees, or marketing the identity theft protection that a biometric account will offer. Ultimately, the success of biometrics will not only be based on fraud prevention, but also on the increased simplicity and convenience that a biometric solution brings to the payment process.

James Uberti is founder, chairman and chief architect of TouchCredit Financial Services, Inc. TouchCredit is a provider of online biometric payment solutions, and offers real-time applicant authentication and identity processing services.












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