The Application of Facial Recognition Technology in the Financial Services Industry

The main service areas in the financial services industry cover mainly financial transactions and financial management.

It requires strict security for the transactions conducted by both service providers and their clients. Hence, there is an evident demand for stricter identification verification. In recent years, more and more financial services providers have incorporated biometric authentication technologies into their financial services, including vein recognition, fingerprint recognition, iris recognition, and facial recognition.

Particularly, there is a growing trend in the number of applications using facial recognition. This report probes into several cases of facial recognition technology in the financial services industry, and examines future prospects of the industry.

Table of Contents

1. Introduction to Facial Recognition Technology
2. Cases of Facial Recognition Technology Application in the Financial Services Industry
   

2.1 MasterCard Focuses on Increasing Consumption and Preventing Unauthorized Use
2.2 China's Bank of Jiangsu Take Aims at Offering Convenient Withdrawal Service and Preventing Unauthorized Use
2.3 Japan's Daiwa Securities Group Aims to Enhance Work Efficiency and Personal Information Protection
2.4 China's Ping An of China Focuses on Shortening the Time for Credit Investigation and Lowering Loan Risks
2.5 US HSBC Works on Accelerating Financial Services Process
2.6 Japan's Mizuho Bank Take Aims at Marketing and Offering Customer Services

3.Analysis on the Application Model of Facial Recognition Technology

3.1 Identity Authentication is the Major Purpose of Facial Recognition Technology
3.2 A Higher Proportion of Financial Services Industry in China Uses Facial Authentication
3.3 Facial Authentication is Commonly Used for Staff Management in the Japanese Financial Services Industry

4.Future Prospects of Facial Recognition Technology in the Financial Services Industry

4.1 Fintech is Major Growth Enabler but It Does Not Particularly Favor Facial Authentication
4.2 Consolidating Facial Recognition Technology into Mobile Devices is Key

4.2.1 Vein Authentication is Mainly Used in ATM Machiness. Iris and Facial Authentication are Joining the Game in Recent Years.
4.2.2 Smartphones have Become Major Means in Financial Services Development; Vein Authentication and Facial Authentication Have Great Potential

4.2.2.1 Vein Authentication Technology has Overcome Technical Difficulties in Downsizing the Scanner
4.2.2.2 Iris Authentication Boasts High Accuracy Rate but Faces Cost and Practical Problems
4.2.2.3 Attribute Analysis Helps Establish a Comprehensive Authentication Mechanism
4.2.2.4 Low Practicality Limits Fingerprint and Voiceprint Authentication Development

5. Conclusion
   

5.1 Attribute Analysis Has Great Potential Despite of Low Presence
5.2 Applications and Empirical Results in China Merit Further Observation

Appendix

List of Tables

Table 1 Case of Facial Recognition Technology in Financial Services Industry
Table 2 Biological Feature Recognition in Financial Services Industry
Table 3 Iris and Facial Recognition Technology for ATM Machines
List of Figures
Figure 1: Facial Recognition Procedures of MasterCard Online Payment
Figure 2: Ten Plans Proposed by the Financial Supervisory Commission R.O.C (Taiwan) for Fintech Development

List of topics:

Development of facial recognition technology and includes application cases such as MasterCard, China's Bank of Jiangsu, Japan's Daiwa Securities Group, Ping An of China, US HSBC, and Japan's Mizuho Bank
Analysis of the application of facial recognition, touching on how facial recognition has been employed in Chinese and Japanese financial services industry
Development and future prospects of other biometric recognition methods such as vein, iris, fingerprint, and voiceprint, as well as attribute analysis
Outlook for financial recognition in the financial services industry, touching on relevant policy in Asia Pacific region such as China, Korea, and Taiwan