Prospects for the application of biometrics in the Polish banking sector
Research background: The ongoing digitisation process in the banking sector, coupled with widespread remote provision of services, is leading to the advent of new solutions in the field of broadly understood security. The increasingly sophisticated forms of attacks on banks’ IT systems and their users have engendered the need to implement authentication methods that would ensure high security levels, but would also be convenient for banks' clients and suited to the requirements of mass service. Biometric technology seems to be a solution to this issue. The two factors that may boost its proliferation are: the fact that banks need to adjust to more rigid regulations, and technological advancements leading to cost reduction and increased availability of biometric solutions in mobile devices.
Purpose of the article: The purpose of the article is to assess the prospects for the application of biometrics by the banking sector in Poland in individual customer service channels.
Methods: The basis for theoretical considerations comprises the analysis of literature on authentication techniques and research on the processes whereby consumers accept new technologies. The empirical part of the paper was based on the results of the authors’ questionnaire survey among representatives of the Polish banking sector.
Findings & value added: The banking sector in Poland is on the verge of a sweeping bio-metric revolution in the coming years, because most traditional identity verification and authorisation methods currently available in banking do not comply with strict security and user convenience requirements and RTS regulations. Biometric technologies will be of use in all customer service channels, with the experts indicating authentication in bank branches, ATMs, and mobile banking as the primary implementation areas. Solutions which are most likely to be applied are those based on biometrics of fingerprints and finger veins, as well as voice biometrics.
Alterman, A. (2003), “A piece of yourself”: ethical issues in biometric identifica-tion. Ethics and Information Technology, 5(3). doi: 10.1023/B:ETIN.0000006 918.22060.1f.
Bank of England. (2015). Financial stability report. 37. Retrieved from http://www.snb.ch/en/iabout/pub/oecpub/id/pub_oecpub_stabrep (08.02.2017).
Bank of England. (2017). Financial stability report. 41. Retrieved from http://www.snb.ch/en/iabout/pub/oecpub/id/pub_oecpub_stabrep (08.02.2017).
Bendovschi, A. (2015). Cyber-attacks – trends, patterns and security countermeas-ures. Procedia Economics and Finance, 28. doi: 10.1016/S2212-5671(15)01077-1.
Bustard, J. (2015). The impact of EU privacy legislation on biometric system de-ployment: protecting citizens but constraining applications. IEEE Signal Pro-cessing Magazine, 32(5). DOI: 10.1109/MSP.2015.2426682.
Casaló, L. V., Flavian, C., & Guinaliu, M. (2007). The role of security, privacy, usability and reputation in the development of online banking. Online Infor-mation Review, 31(5). doi: 10.1108/14684520710832315.
Deloitte (2017). Technology media and telecommunications predictions 2017. London. Retrieved from http://www.deloitte.com/view/en_RO/ro/industries /technology-media-telecommunications/513596b205d9d210VgnVCM2000001 b6f00aRCRD.htm (01.02.2017).
European Banking Authority (2017). Final report. Draft regulatory technical stand-ards on strong customer authentication and common and secure communication under Article 98 of Directive 2015/2366 (PSD2) (Vol. 2366).
European Parliament. (2015). Directive 2015/2366 (Payment Service Directive 2). Official Journal of the European Union, L 337/35(260), 35–127.
Gaikwad, A. N., & Pasalkar, N. B. (2004). Biometric person identification—methods, advances and performance evaluation. IETE Technical Review, 21(3). doi: 10.1080/02564602.2004.11417147.
HM Government (2015). 2015 Information Security Breaches Survey, 49. Re-trieved from https://www.gov.uk/government/uploads/system/uploads/attachme nt_data/file/432412/bis-15-302-information_security_breaches_survey_2015-full-report.pdf (02.02.2017).
Jagadiswary, D., & Saraswady, D. (2016). Biometric authentication using fused multimodal biometric. Procedia Computer Science, 85. doi: 10.1016/j.procs.2016.05.187.
Khandelwal, C. S., Maheshewari, R., & Shinde, U. B. (2016). Review paper on applications of principal component analysis in multimodal biometrics system. Procedia Computer Science, 92. doi: 10.1016/j.procs.2016.07.371.
Kim, C., Mirusmonov, M., & Lee, I. (2010). An empirical examination of factors influencing the intention to use mobile payment. Computers in Human Behav-ior, 26(3). doi: 10.1016/j.chb.2009.10.01.3
Komisja Nadzoru Finansowego (2015). Recommendation on the security of pay-ment transactions carried out on the Internet by banks, national payment institutions, national electronic money institutions and cooperative savings and credit societies. Warsaw: the Polish Financial Supervision Authority.
Koulayev, S., Rysman, M., Schuh, S., & Stavins, J. (2016). Explaining adoption and use of payment instruments by US consumers. RAND Journal of Econom-ics, 47(2). doi: 10.1111/1756-2171.12129.
Kubiszewska, K. (2017). Banking concentration in the Baltic and Western Balkan states – selected issues. Oeconomia Copernicana, 8(1). doi: 10.24136/oc. v8i1.5.
Kumar, K., & Farik, M. (2016). A review of multimodal biometric authentication systems. International Journal Of Scientific & Technology Research, 5(12).
Lancelot Miltgen, C., Popovic, A., & Oliveira, T. (2013). Determinants of end-user acceptance of biometrics: Integrating the “big 3” of technology acceptance with privacy context. Decision Support Systems, 56(1). doi: 10.1016/j.dss.2013. 05.010.
Lumini, A., & Nanni, L. (2017). Overview of the combination of biometric match-ers. Information Fusion, 33. doi: 10.1016/j.inffus.2016.05.003.
Malathi, R., & Jeberson Retna Raj, R. (2016). An integrated approach of physical biometric authentication system. Procedia Computer Science, 85(Cms), 820–826. DOI: http://doi.org/10.1016/j.procs.2016.05.271
Matyas, V., & Rilla, Z. (2002). Biometric authentication – security and usability. In Advanced Communications and Multimedia Security IFIP TC6TC11 Sixth Joint Working Conference on Communications and Multimedia Security Sep-tember 2627 2002 Portorož Slovenia, 100(5). doi: 10.1007/978-0-387-35612-9_17.
Peng, J., El-Latif, A. A. A., Li, Q., & Niu, X. (2014). Multimodal biometric au-thentication based on score level fusion of finger biometrics. Optik, 125(23). doi: 10.1016/j.ijleo.2014.07.027.
Pocovnicu, A. (2009). Biometric security for cell phones. Informatica Economica, 13(1).
Polasik, M., Piotrowska, A., & Kumkowska, N. (2015). Development through innovations or economies of scale? Study of the participants of the Polish payment system. Executive summary. Retrieved from http://alterum.pl/uploaded/Ra port_Rozwoj_przez_innowacje_czy_efekt_skali_-_polski_s.pdf (10.06.2017).
Polasik, M., & Wisniewski, T. P. (2009). Empirical analysis of internet banking adoption in Poland. International Journal of Bank Marketing, 27(1). doi: 10.1108/02652320910928227.
Polasik, M., Wisniewski, T. P., & Lightfoot, G. (2012). Modelling customers’ intentions to use contactless cards. International Journal of Banking, Account-ing and Finance, 4(3). doi: 10.1504/IJBAAF.2012.051590.
Saevanee, H., Clarke, N., Furnell, S., & Biscione, V. (2015). Continuous user au-thentication using multi-modal biometrics. Computers & Security, 53. doi: 10.1016/j.cose.2015.06.001.
Sahoo, S., Choubisa, T., & Mahadeva Prasanna, S. (2012). Multimodal biometric person authentication: a review. IETE Technical Review, 29(1). doi: 10.4103/0256-4602.93139.
Schierz, P. G., Schilke, O., & Wirtz, B. W. (2010). Understanding consumer ac-ceptance of mobile payment services: An empirical analysis. Electronic Com-merce Research and Applications, 9(3). doi: 10.1016/j.elerap.2009.07.005.
Seiders K., Voss G. B., Godfrey A. L., & Grewal D. (2007). SERVCON: devel-opment and validation of a multidimensional service convenience scale. Jour-nal of the Academy of Marketing Science, 35. doi: 10.1007/s11747-006-0001-5.
Shen, Y.-C., Huang, C.-Y., Chu, C.-H., & Hsu, C.-T. (2010). A benefit–cost per-spective of the consumer adoption of the mobile banking system. Behaviour & Information Technology, 29(5). doi: 10.1080/01449290903490658.
Shin, D.-H. (2009). Towards an understanding of the consumer acceptance of mobile wallet. Computers in Human Behavior, 25(6). doi: 10.1016/j.chb.2009.06.001.
Szwajca, D. (2016). Corporate reputation and customer loyalty as the measures of competitive enterprise position – empirical analyses on the example of Polish banking sector. Oeconomia Copernicana, 7(1). doi: 10.12775/OeC.2016.007.
Van der Ploeg, I. (2003). Biometrics and privacy a note on the politics of theorizing technology. Information, Communication & Society, 6(1).
Venkatesh, V., Morris, M. G., Davis, G. B., & Davis, F. D. (2003). User acceptance of information technology: toward a unified view. MIS Quarterly, 27(3). doi: 10.2307/30036540.
Venkatraman, S., & Delpachitra, I. (2008). Biometrics in banking security: a case study. Information Management & Computer Security, 16(4). doi: 10.1108/09685220810908813.
Woszczyński, T. (Ed.). (2013). Biometrics Report . Warsaw: The Polish Bank Association. Retrieved from https://zbp.pl/public/repozytorium/dla.../Raport_ Biometryczny_2.0_strona_FTB.pdf (22.02.2017).
Woszczyński, T. (Ed.). (2016). Report biometrics in banking – key aspects. War-saw: The Polish Bank Association. Retrieved from: https://www.bankbps.pl/__data/assets/pdf_file/0005/268646/Report_Biometrics-in-banking-key-aspects.pdf (22.02.2017).
Zhu, D. H., & Chang, Y. P. (2014). Investigating consumer attitude and intention toward free trials of technology-based services. Computers in Human Behavior, 30. doi: 10.1016/j.chb.2013.09.008.