Young banking customers would rather use biometric security devices than PINs and passwords for authentication, according to a recent study carried out by Visa Europe.
The payments firm found that 75% of adults between 16 to 24 years of age, the so-called generation Z, would prefer to use biometric security, with 69% claiming it to be faster and easier to use than passwords or PINs.
Biometric authentication using fingerprint recognition or retinal scans offers a suitable solution, combining unique security and ease of use, said Jonathan Vaux, executive director at Visa Europe.
For banks and product providers this implies two challenges. First: to speed up the pace of development of biometrics to meet this new demand. Second: to continue to evaluate the increasing range of authentication options to ensure customers the convenience and security of payments.
The study carried out by Visa Europe confirmed that younger people often take a more relaxed approach to their personal data.
Nearly 35% of the people in the Generation Z age group said they had shared their PIN number. 32% of those asked, confirmed they use a single password or PIN to protect all their personal data sources. Over 20% of the Generation Z has shared their online banking password with someone else, and 32% has given out their smartphones password.
Also, more than half of these young crowd think that passwords will no longer be needed or used by the end of 2020, and will be replaced by authentication methods such as facial recognition or fingerprint and retina scanners.
From all the authentication methods, fingerprint recognition is the most popular.
Vaux pointed out that the adoption of biometrics for mobile banking and payments is likely to continue rising as consumers realize the benefits of these authentication technologies. The more habitual and commonplace the application becomes, the greater the adoption, particular in the payments landscape.
For example, in Poland 1,730 cash machines have been equipped with finger vein authentication, allowing people to scan their finger to withdraw money from an ATM, with no need for a card or PIN number.
Outside of Europe, palm vein technology is being used in the Japanese banking sector to provide advanced security at ATMs.
Although young people show less concern than older generations about data protection, a large number believe biometrics will keep their data more secure.