Is a Voice Recognition Banking System the Future of Online Banking?

With a voice recognition banking system you will finally be able to forget passwords, card verification numbers and PINs. Latest biometric technologies now allow you to use your voice to log in to your bank account.

Today customers are using web or mobile banking applications to check their bank accounts. The financial brand has conducted a research during the last 5 years and examined the analytics data from over 100 banks, financial institutions and credit unions. They found that over 85% of customers log in to online banking, check their accounts, spend 2-3 minutes on the platform, and log out.

Recent innovations in voice recognition banking systems provide secure access to both information centers and accounts within seconds. In such a system the customer’s voice is verified against prerecorded and stored voiceprints, solving the problem of forgotten passwords once and for all. Also a voice recognition banking system brings more accessibility to blind or partially sighted people, which is a significant benefit in itself.

Barclays introduced a voice recognition banking system in 2013 for some of its customers. The solution reduced the authentication process by an average 20 seconds. At the same time, it minimized identification and authentication issues on the customer support side. As a result, customer satisfaction levels increased.

Banks will soon be able to give their customers the possibility to check accounts and make transfers by talking into a device. This has its advantages and disadvantages. For example, customers will be more focused with a voice recognition banking system in place. It  may be more difficult to attract customers with ads as customers likely won’t check their bank’s online banking system as often as they do these days.

A voice recognition banking system will provide a lot of data for analysis that hasn’t been available previously. For example, data on the customer’s voice tone, location, or average speech tempo will now be available. Based on this knowledge, banks and financial institutions will be able to sell more high-end products such as financial planning tools, loans or consultancy services. When the customer is in a good mood they might be more willing to discuss an offer.

Dan Miller, a senior analyst at Opus Research, notes that in the long run, other industries such as insurance companies and telecom companies (but also government agencies or even retailers) will take advantage of a voice-based authentication system to serve customers in the most personal and efficient way. This is probably the best time to make a decision and offer your customers an innovative tool to log in to your system.

What do you think about voice-based authentication systems? Can you think of other benefits of such a platform? Share in the comments!