After years of anticipation, biometrics is now proliferating throughout the worldwide banking infrastructure. As its security and convenience continue to improve the user experience, biometric authentication is also now enabling banks and retailers to offer a host of additional services and benefits.
One such move to make cash machine cards a thing of the past came from DCB Bank with the launch of Aadhaar-based authentication at its ATMs to enable cardless financial transactions.
“We noticed that on several occasions customers either forgot to carry their cards or they did not remember their identification numbers or had damaged cards. Also, many of them failed to receive their cards or PIN details due to the locations that they were in. All this led to customer inconvenience. That’s when we decided to use Aadhaar card to access the ATM to make transactions cardless and PIN less,” says Murali M. Natrajan, MD and CEO, DCB Bank.
Securing ATMs, streamlining user experience
Traditionally, ATM security has always relied on two-factor authentication that includes a card that the user has and the identification PIN that the user knows.
“Though banks have one of the best security mechanisms, this approach still is vulnerable to fraud from card loss, theft, and skimming. As a bank we were looking at an innovative and completely secure solution for our customers, more specifically digitalizing customers’ financial transactions. In that direction, Aadhaar-based ATM is one such initiative which all of us have worked together to deliver,” says R. Venkattesh, Head – HR, Technology & Operations, DCB Bank.
DCB Bank was working on an e-KYC within the bank and also looking to innovate in multiple areas, specifically around digital. As part of this innovation, the bank decided to use Aadhaar-based authentication to validate customer and enable financial transactions. It already had Aadhaar numbers of its majority of customers mapped with their respective account numbers and had recently deployed e-KYC application to facilitate KYC electronically.