Five Industries To Watch That Are Being Transformed by Biometrics

By Bob Eckel, CEO, Aware

From opening a phone to unlocking a door or paying for a meal, biometrics, or the recognition of individuals by means of their unique physical characteristics, is becoming an increasingly popular authentication method.

Several industries are currently being transformed by using biometrics in ways that could help them win or acquire more customers, generate more revenue, and ultimately improve individual company performance and value. Below are just a few examples. All of these are opt-in use cases, meaning customers have the ultimate control over their biometric being used. Let’s look at how these industries are making use of this innovative technology:

1. Banking

Biometrics has been woven into the fiber of modern authentication processes, and you've likely encountered this technology on some level (perhaps through a mobile banking app with your face or thumbprint). In this type of application, it’s essential that banks deliver both superior security and customer convenience, because those organizations that can do both will no doubt have a significant competitive advantage. Banks that tout biometrics as part of their authentication process can provide assurance to their clients that their accounts are protected by an extra level of security, while making account log-ins an exceptionally easy, password-free process.

Another example is voice recognition. Think about the last time you called your bank to access account information or request assistance. Whereas before you might have been grilled with personal identification and knowledge based questions to authenticate your identity, now biometrics can instantly recognize you through your voice.

2. Food and Beverage

Innovative food and beverage chains have begun leveraging biometrics to not just bring superior security and convenience to the payment process, but also to add an extra layer of personalization.

For example, Panera Bread recently announced plans to deploy Amazon One’s palm-reading payment technology in several of their U.S. locations, enabling customers to access their MyPanera membership which provides staff the ability to greet customers by name. This approach gives Panera a unique opportunity to personalize customer interactions (while also encouraging the purchase of additional menu items) and it's likely that many other restaurants will follow suit.

3. Retail

Imagine not having to reach for your wallet or credit card to pay at the grocery store. Nearly half of consumers say they would use biometrics to pay in retail stores if a company offered it, and several retail marketplaces are already putting that to the test.

Amazon is taking the lead in their Amazon company stores with their Amazon One “pay with your palm” technology, which offers a biometric-protected payment option that puts the “convenience” in convenience stores. Leading retailers are adopting the technology like the Amazon-owned Whole Foods, and brand-name travel retailers like Hudson.

4. Airlines

In partnership with TSA PreCheck, Delta Airlines recently rolled out biometrics-based bag drops at the Atlanta International Airport. Members of Delta’s frequent flier program who are also TSA PreCheck members can scan their faces, get their baggage labels, drop their bags off on the conveyor belt, then pick them up at their destination. A process that could take upwards of a half-hour can now be completed in less than a minute, thanks to the power of biometrics. Moreover, customers absolutely love this expedited experience.

5. Healthcare

In healthcare, delivering high-quality digital experiences matters more than ever. Twenty-eight percent of healthcare consumers say they will switch or stop going to a healthcare provider because of a poor digital experience, and they won’t adopt digital health services if they feel those services aren’t safeguarding their sensitive data. That’s why it’s vital that the first point of contact is as frictionless as possible while also being secure.

Enter biometrics. With a finger- or voiceprint or both, patients can access their personal information while ensuring their data is being kept safe. What’s more, using biometrics can enhance patient safety - by identifying someone who can’t do so themselves (due to an accident or another critical situation) and accurately correlating individuals with their medical records. Currently, it’s estimated that healthcare facilities fail to link records for the same patient about half the time. Biometrics can help to prevent this.

Many organizations from a variety of industries are leveraging biometrics to transform how they serve customers, secure sensitive data, and push the limits of what’s possible in their fields. The industries described above are just some examples of those being transformed, and experts expect many more in the near future. Within these industries, there are plenty of opportunities to look for companies who are using biometrics as very attractive investment options.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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