THE FUTURE OF FINTECH AND FACIAL RECOGNITION TECHNOLOGY
Facial Recognition system is a method of confirming an individual's identity using an artificial intelligence algorithm. The system is developing rapidly and is widespread. The usages include unlocking smartphones, checking in for work, and border access.
Not only facial, but other biometric (fingerprint, iris, voice, etc.) recognitions is also considered more convenient, secure, and faster than passwords or pin-codes. According to the 2020 study by CSIS, facial recognition systems can be 90.00 to 99.97 percent accurate. Juniper's research estimated that facial recognition hardware grows by 50 percent each year. Furthermore, the system is developed to scan faces with barriers such as masks, sunglasses, spectacles, and scarves.
Although the system is beneficial in many ways, the experts warn that due to the insufficiency of the cyber-security the individual's sensitive data can be stolen and harm national security. In addition, identifying people by their faces through security cameras violates the constitutional right to freedom.
Source: https://jp.cyberlink.com/faceme/insights/articles/206/Facial-Recognition-at-the-Edge-The-Ultimate-Guide
So how does the Fintech industry use the system?
For now, biometric data are used as a verification tool to secure login access, retail payments, and ATM cash withdrawals.
China leads the payment facial recognition system. According to iiMedia's study in 2018, 61 million Chinese users accepted the system and were using it actively, that increased to 118 million in 2019. They are expecting that number to rise to 760 million by 2022.
To conclude, not only in China, the facial recognition system can be a global integrated identification and confirmation method if a secure and legal environment is provided.
References:
Electronic Identification. (2022, March 28). The Role of Biometric Technology in the Fintech Revolution. https://www.electronicid.eu/en/blog/post/role-biometric-technology-fintech-revolution/en
Fintechnews Singapore. (2020, July 30). Facial Recognition Technology Rapidly Picking Up Stream with Banks and Fintechs. https://fintechnews.sg/42240/innovation/facial-recognition-fintech-banks/
Galov, N. (2022, April 8). 20 Facial Recognition Statistics to Scan Through in 2022. https://webtribunal.net/blog/facial-recognition-statistics/#gref
NEC. (2021, December 8). What is the Future of Facial Recognition Technology Technology in 2022 and Beyond? https://www.nec.co.nz/market-leadership/publications-media/what-is-the-future-of-facial-recognition-technology-in-2022-and-beyond/
Personal Information Protection Act
https://legalinfo.mn/mn/detail?lawId=16390288615991
Cyber Security Act
https://legalinfo.mn/mn/detail?lawId=16390365491061