Voice authentication includes a range of techs that focus on accurately identifying and responding to a user’s voice. Let us see how it improves FinTech security.
According to Statista’s Global Voice Recognition Market Size 2020 to 2029 report – The global voice recognition market size expects healthy growth in the coming decade. It is expected to grow from a humble USD 10 billion in 2020 and 2021 to nearly USD 50 billion in 2029. This makes a CAGR growth of 23.7%.
FinTech companies aim to integrate voice authentication into their offerings as these techs progress. This lifts voices on a level with other biometric markers such as fingerprints and facial recognition.
According to Opus Research Report: “State of Voice 2023”
How does Voice Authentication work?
It distinguishes people by analyzing their voice nuances. This provides a secure alternative to traditional passwords. It evaluates over 70 speech production components.
It transforms speech into a securely stored voice print, like fingerprint data. Users’ unique vocal traits, like fingerprint scanning, are captured when they utter a specific passphrase.
Different voice attributes include intonation, speech speed, clarity, briefness, and emotional tone. Some systems refrain from pre-recorded samples, instead recognizing voice patterns to improve the process.
The process involves:
- Feature extraction
This offers robust user identification and access control.
Applications of Voice Authentication in the Financial Sector
Its adoption has grown largely, driven by advances in AI, machine learning (ML), and user acceptance. Below are important applications of voice recognition:
- Biometric Verification:It functions as a form of biometric verification. It relies on unique physiological and behavioral voice attributes.
- Security and Fraud Prevention:It strengthens the security of financial transactions. This reduces the likelihood of identity theft and fraud. It ensures that only authorized people can access sensitive data or make transactions.
- Voiceprint Generation:Users typically create a voiceprint during signup. This involves recording a voice sample. This sample is then converted into a digital model based on specific vocals.
- Continuous Verification:They can also use it for ongoing verification during interactions with financial service providers.
- The system constantly monitors the conversation. This matches the character of the voice with the original voiceprint.
Voice-Powered Customer Service
Businesses can use voice-powered customer service centers on automated response systems. This makes it different from the often frustrating experiences with text-based chatbots.
Modern AI chatbots mimic human intonation. They understand speech patterns for more effective problem-solving.
This approach aims to improve user satisfaction. It cuts the need for manual data entry or navigating difficult apps.
Voice Enabled Payments
Voice-enabled payments use voice verification to validate transactions. The user’s voice serves as the verification method.
It analyzes the unique vocal characters to confirm the user’s identity. This improves transaction security, particularly for huge corporate transactions.
Businesses implementing voice payments must adhere to strict data protection and privacy regulations. This safeguards user information. This makes voice tech safer than PINs or complex passwords for daily use.
Advantages of Voice Authentication
Biometric verification offers efficiency, user-friendly interfaces, reduced costs, and smoother payment transactions.
1. Reduced Fraud Risk
It adds a layer of security by verifying people’s unique vocals. This makes it challenging for fraudsters to gain sensitive information.
This reduces the risk of fraudulent activities like identity theft. It improves overall customer account security.
2. Improved KYC (Know Your Customer)
Accurate verification of customers’ identities through their voiceprints is beneficial to banks. They can follow regulatory requirements and fight the risk of fraudulent account openings.
This streamlined and reliable KYC process builds trust and transparency in customer relationships.
3. User-Friendly Interface
It offers a user-friendly interface that simplifies the verification process. This makes adopting voice tech in financial apps relatively seamless.
Users can verify themselves by simply speaking a passphrase or providing a voice sample. This reduces the need to remember difficult passwords or carry physical verification devices.
4. Reduced Administrative Costs
It can reduce banks’ administrative costs by automating the verification process and customer service. Old methods like manual identity verification require extra resources. Voice authentication cuts the need for extra resources and infrastructure compared to them.
5. Innovative Features to Retain Customers
ML and AI research is exploring biometric verification methods with new tech. Some of these cutting-edge techs offer new features to create tailored and secure banking experiences that users appreciate.
Mobile banking has changed how people manage their finances. It has enabled users to access accounts, transfer funds, and make payments via smartphones.
The number of mobile banking users is increasing. This makes it necessary for banks to focus on financial transaction security.
Voice authentication integrated into mobile banking apps improves security. This makes it more challenging for cybercriminals to execute cyber-attacks.
6. Online Trading Platforms
It allows people to trade stocks, bonds, and other financial instruments easily. These platforms handle large financial transactions daily. It is important to secure user accounts and transactions.
Implementing voice authentication in online trading platforms will improve security. It will verify users’ identities before permitting trade execution. This safeguards investors from fraudulent transactions and reduces the risk.
7. Peer-to-Peer Payments
Peer-to-peer (P2P) payment platforms simplify money transfers between users. This makes splitting bills, paying friends, or settling debts easy. With the growing popularity of these platforms, robust security measures are essential.
Voice authentication can secure P2P transactions. It confirms users’ identities before allowing them to send or receive funds. These platforms can deliver a seamless and secure user experience using voice biometrics.
8. Customer Support
Customer support is a critical aspect of the FinTech industry. Voice verification verifies the caller’s identity and simplifies the support workflow. Support representatives can swiftly access pertinent customer details without requiring protracted verification protocols. They can confirm the caller’s identity based on their distinctive voice traits.
Voice support technologies are growing fast to augment customer relationships. There are numerous different ways voice support can be useful for keeping financial operations and transactions secure. For many users, this may be the only way transactions can be efficient, fast, and secure.
Also, the ability to explain issues verbally will make voice support a huge hit with the market. This will give a new meaning to excellence in CRM.
Voice Authentication will reduce the usage of passwords in the future. It ensures securing user’s accounts and transactions with this tech.