Facial recognition technology is used in banking in various ways. One common application is customer identification and authentication. For example, a bank may use facial recognition to identify a customer when entering a branch or accessing his account on the Internet, and then use this information to confirm the customer’s identity. This can help reduce the risk of identity fraud and improve the security of banking systems.
Another application of face recognition in the banking industry is personalized marketing and advertising. Banks can use facial recognition to collect information about the age, sex, and other demographic characteristics of the customer, and then use this information to tailor marketing messages or advertisements to a particular customer.
Facial recognition technology can also be used in the banking sector for security purposes, for example, to identify known criminals or to prohibit the entry of prohibited persons into banks.
Market analysis
In the Russian market, only 10% of banks use the facial recognition system. For the sole purpose - for quick access to personal data of the client. This is due to the complexity of the technology and the shortage of experts in the market.
According to a Grand View Research report, the face recognition market for the US banking industry in 2017 was $78.6 million. And in 2022 it rose to $5.14 billion.
Customer experience
Use cases
Shortening the customer service process
The increase in customer flow in the bank’s branches directly affects the consumer loyalty index (NPS) and brand adherence. The solution of this issue is a key task. According to statistics, the figures are growing by 80% - 120% in the medium term.
Personalized marketing and advertising
Banks can use facial recognition to collect information about the age, sex, and other demographic characteristics of the customer, and then use this information to tailor marketing messages or advertisements to a particular customer.
Prevent fraud
Instant identification of visitors, comparison with database of intruders and timely notification of SB. The system reduces the risk of crime by 187%. According to the Central Bank economists, the losses from fraudulent activities in the banking services market amount to 1 billion rubles per year. The Central Bank is the largest bank in the world.
Access control to staff quarters
LUMIFACE limits the risks of counterfeiting RFID-cards of employees, their loss, transfer to third parties, access of several people on one card.