Undoubtedly, artificial intelligence is reshaping the dimension of the world in which we are currently living. Each and every single sector is accommodated with revolutionary artificial intelligence algorithms while playing a promising role in business operation enhancement as well as identity theft detection and prevention, clearly nothing on this earth can escape from cognitive technology and artificial intelligence algorithms. More than 37% of the organizations across the globe utilize artificial intelligence. Not only this, none out of ten tech-giants have invested in the technology of artificial intelligence. It is also estimated that by the year 2025, the industry of artificial intelligence will earn $126 billion and the figure will evolve with the passage of time.
The strategic implementation of AI technology project and financial industry has brought about a plethora of advantages. From streamlining business operations to bringing convenience to the customers, AI can do it all. One of the key benefits of AI, however, has been the advent of face recognition. AI face recognition has numerous applications in the field of finance, and some of them are listed below.
What is AI Face Recognition?
AI face recognition refers to the use of biometric technology for identifying individuals. Facial recognition technology verifies individuals based on their unique facial characteristics. For instance, a facial recognition online system can identify customers remotely by analysing the distance between the eyes or the shape of the lips. This method of identification can be done remotely, simply with the help of a webcam. Because of its ease, the facial recognition industry is forecasted to be worth as much as USD 8.5 billion by 2025.
Facial Recognition in Finance
The financial services industry has the crucial task of verifying customers prior to providing them with services. This process has been made mandatory under the global Know Your Customer (KYC) regulations. For the purpose of identification, which is required under the KYC standards, identity verification is carried out. Banks, investment firms, brokerage companies etc. have made this process simple with the help of AI face recognition. Let’s take a look at some key advantages of face recognition in the financial space. When it comes to financial institutions, securing the customer’s data, proofing online servers with DDoS protection, and safeguarding the facility itself is a crucial task.
Benefits of AI Facial Recognition
1. KYCC Compliance
Know Your Customer’s Customers, commonly known as KYCC, is an essential practice implemented by financial institutions worldwide. It involves monitoring not just the transactions carried out by the customers, but their customers as well. For instance, a bank may be dealing with a seemingly trustworthy business, but that business’s clients might be making their earnings through money laundering or other illicit schemes. This can have negative consequences on the bank, thus KYCC is implemented.
Facial recognition streamlines KYCC compliance by verifying each client during the initial stage of customer onboarding. This is done by requiring the customers to submit their ID document and have their face scanned. The AI face recognition system matches the image on the ID document against the face of the customer to ensure that they are actually who they claim to be. In doing so, KYCC compliance targets are met, and legitimate customers are onboarded.
When it comes to financial institutions, securing the customer’s data, online servers, and the facility itself is a crucial task. Facial recognition provides various benefits in this sense. If integrated at the entrance points, it provides security through access control, i.e. only authorized personnel are allowed to enter. If the bank functions online, AI face recognition ensures that no identity thief, criminal, or imposter of any kind is onboarded in the system.
As identity theft has become a major problem and the fastest-growing crime worldwide, face recognition provides the perfect mechanism for minimizing this threat. With the help of a simple face scan, businesses can verify whether the ID document actually belongs to the document holder. In case of any discrepancies between the two, access to the account and transaction is denied.
3. Faster Verification
AI face recognition makes ID verification seem like a piece of cake for both the business and the customer. How? With the help of AI technology. AI has the ability to store data for the long run once it has been fed with the required datasets. By finding patterns in the datasets, it has the ability to learn over time. Since this process is ongoing, irregular patterns are detected within seconds. So, in case an intruder tries to enter the facility by attempting to fool the security system with a face mask, not only is he denied entry within seconds but that too with the highest rates of accuracy.
On the other hand, if a customer from another part of the world wishes to access their account online, they will need to get verified. Thankfully, this can be done in less than a second with the help of AI face recognition.
4. Swift Onboarding
The onboarding process is the first impression the customer has about the business. If the onboarding process is slow, not only do they lose interest, but they switch to a competitor to avail themselves of the same services. AI face recognition sorts out this problem by making the process as fast as the speed of light. Instead of typing in passwords or PIN codes, all the customers have to do is have a face scan and go on to making transactions.
The final, and perhaps the most important, benefit of AI face recognition is that it eliminates the need to have manual procedures in place. Instead of employees verifying each document, all that is required is a scan of the customer’s face. This way, not only is a company able to save up its time and resources, but also provide customers with the highest level of convenience.
A single vulnerability is sufficient enough for a hacker to have unauthorised access to the organization network. Cyberattacks, data breaches, identity theft are never going to stop anytime soon as hackers are also obtaining advantages with artificial intelligence algorithms. All that enterprises need to do is integrate themselves with AI-powered facial recognition technology to fulfil customer demands, for business operation enhancement and for the detection of fraudulent activities.