Study Finds Biometrics Key to Convenient Customer Authentication

Companies today spend a lot of time advancing technology to make it difficult for thieves and other unauthorized personnel to access our personal accounts. Unfortunately, done improperly, this can make it more difficult for us to access our own accounts. The problem has only gotten worse since we added multiple digital channels to the mix.

A study conducted in collaboration between PYMNTS and Pindrop found approximately 182 million adults in the U.S. have accounts with financial institutions, and 89 percent of these consumers can access these accounts digitally. The quality of consumers’ interactions with customer service representatives can make or break their relationships with these companies.

Many current authentication processes are clearly too cumbersome. Users’ most common difficulties include struggling to remember credentials, being on hold for too long and repeating the authentication process. Between 25 and 30 percent of people who use online services consider keeping track of their credentials as a negative aspect of identifying themselves when logging in to an online account.

So how do you make it easier for customers to do business with you digitally, while simultaneously protecting their personal information and their accounts? The answer lies in biometrics. The study found 57 percent of consumers who’ve used advanced ID verification methods such as voice recognition and fingerprint scans when contacting customer service say they’d do it again.

These biometric methods are particularly popular with younger consumers. Millennials and bridge millennials were more likely to indicate they are willing to use advanced identity verification technologies, with 51 percent of millennials and 45 percent of bridge millennials saying they are “very” or “extremely” interested in using them.

“Consumers’ lives are powered in many ways by their connections with their service providers,” according to PYMNTS, a cosponsor of the study. “Advanced ID verification solutions can streamline the customer service experience, improving the experiences of individuals who will no longer need to suffer through remembering credentials or repeating failed verification processes while imperceptibly providing the strong security that builds trust and satisfaction. Providers adopting and demystifying these tools will best position themselves to succeed in an evolving, digital world.”

Edited by Luke Bellos