Biometric banking : a new proposal for Malta’s banking system

Abstract

“With advances in biometric technologies and improvements in IT infrastructure, there is a growing acceptance of biometric recognition technologies in our daily lives, and this acceptance will grow further with time.” (Bachenheimer, 2015, p. 6) Biometric Banking refers to the behavioural and physical metrics used to verify bank customers’ identity and enable them to carry out their banking activities. Rapid technological advancements enabled this concept to increase in popularity and familiarity in the banking industry, and nowadays, it acts as a prospect to replace traditional authentication methods (PINs, passwords and memorable information). Several banks around the world have either tested or adopted biometrics in their day to day operations used by banking employees and their clients. Transactional frauds and security breaches have increased from year to year; hence, people are increasingly concerned about identity theft. Thus, trade-off between security and efficiency must be well addressed and catered for to ensure a stronger cohesive banking sector. The literature section will review biometrics which is being deployed by European banks while analysing its relevance to Maltese banks. To rationally analyse biometrics’ applicability in the Maltese banking sector, the researcher collected quantitative and qualitative data from the public and bank professionals on behalf of Maltese core retail banks. Data collection provided a clear indication that Maltese citizens are willing and interested in adopting biometric banking, while interviews with local banks helped to establish that it is a matter of time before they roll out this technology. Following the research findings, a new proposal for Malta’s banking system was recommended, along with suggestions for further research.