Science and Tech

Digital identity in the financial industry: defense and weapon

Digital identity in the financial industry: defense and weapon

“Biometrics is not just your face or a security document plus your face. There are dozens of biometric applications, such as voice or even the way you walk, which are unique characteristics and difficult to change,” said Manuel Aranda, general manager. development at Inetum Mexico.

Financial institutions, particularly digital banks, are at the forefront of this transformation. Juniper predicts that the banking sector will perform 37 billion identity verifications in 2024, representing 53% of the global market. This reflects how digital banks rely on these technologies to ensure secure transactions, while traditional banks are taking similar steps to catch up.

Trends point to the integration of passive and biometric methods to improve both security and user experience. For example, verification systems that combine facial recognition with age estimation allow for greater personalization and robustness in the validation process.

Digital identity verification service providers must collaborate with core banking systems to facilitate access to these solutions, or risk being overtaken by better-connected competitors.

“Identity sovereignty will be a future trend, where users will have full control over their data through blockchain. You will be able, for example, to grant temporary permissions for third parties to access your information in specific situations, such as medical treatment in another country,” said Aranda.

Cybersecurity companies warn about the importance of encrypting biometric data and implementing multi-factor authentication mechanisms. Additionally, they emphasize the need to diversify databases and not rely solely on a centralized repository.

For example, McAfee emphasizes that database segmentation and the use of artificial intelligence to detect anomalies in the use of digital identity are key to mitigating risks. It also recommends that financial institutions invest in continuous software updates and security patches to keep their systems safe from the latest threats.

Main risks in the use of digital identity:

Although biometric technologies are more secure than traditional passwords, they are not foolproof. Cyberattackers can access databases and obtain biometric information, which endangers the privacy of users. In addition, the collection of large amounts of biometric and personal data in centralized databases, such as that of the INE, makes these databases targets. attractive to hackers.

With technologies, such as deepfakes, false identities can be created, compromising the authenticity of transactions based on facial or voice recognition. Furthermore, biometrics are not always accurate; factors such as skin wear or environmental conditions can make it difficult to recognize fingerprints or facial prints.



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