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Breaking five myths and misconceptions of fingerprint biometric authentication

Source: Finance Derivative

By Vince Graziani, CEO, IDEX Biometrics

Mastercard’s recently launched biometric payment system shows the growing demand for more secure payment methods, beyond traditional chip and PIN authentication. Biometrics are increasingly becoming embedded into society, with stronger customer authentication requirements and more consumers relying on the appealing benefits of increased security, reliability and convenience. As a result, biometric smart cards are soon set to be a part of our daily life.

However, as is often the case with new technology, biometric card payments are sometimes misunderstood, and some myths and misconceptions still persist around biometrics.

To avoid misapprehensions about the physical biometric smart card as a product, its transactional processes, infrastructure and support, let’s break a few common misconceptions surrounding fingerprint biometric smart cards.

  1. Payment cards continue to grow

Globally payment cards are growing, showing the desire for contactless authentication among consumers. The number of payment cards in circulation worldwide grew by over two billion between 2019 and 2021 and is forecast to further increase. In fact, the global cards market is expected to grow by 9.6%, from $251.33 billion in 2021 to $275.5 billion in 2022.

One of the fastest growing card market regions in the world according to ‘The Global Payments Report’ is Latin America with a projected CAGR of 19% through 2025.

Despite the expected growth of biometric smart cards across all markets in the coming years, a few common misconceptions remain. As a result, some consumers may feel apprehensive about using the technology, especially as it enters more sensitive, personal areas, such as financial services.

  1. Demystifying point-of-sale terminal systems

One of the biggest myths is the idea that banks and retailers need a new payment infrastructure to accept biometric payment cards. Fingerprint smart cards will function with current contactless ATMs and existing in-store Point-of-Sale (POS) systems, and is already working across more than 40 million acceptance locations worldwide. This means consumers can use contactless technology with fingerprint authentication for secure end-to-end contactless cash withdrawals and in-store transactions for any amount, without the need for a PIN.

It’s not only card-present transactions that benefit from fingerprint biometric security. Fingerprint authentication biometric smart cards combined with the NFC field on a smartphone can be used for multifactor online authentication. This allows for secure e-commerce or card-not-present transactions and online banking access through payment card authentication.

While fingerprint biometric smart cards are primarily thought of as a payment technology, their authentication potential goes far beyond payments. Biometric smart cards can also provide digital authentication for physical and virtual access, such as to offices and company networks, transport or event ticket systems. Their ability to combine government IDs, healthcare access and payments, all into one convenient and secure digital identity card could also address rising demands for global digital identity solutions, the market for which is projected to grow to $49.5 billion by 2026.

  1. Reducing cybersecurity fears

As security breaches continue to hit headlines, the public has become ever more aware of the need for data security – particularly around their biometric data. Storing biometric data in a centralised database can be a challenge and a risk. In IBM’s recent global Cost of Data Breach Report, 83% of organisations said they have had more than one data breach, putting sensitive information at risk. A common misconception is that biometric data for fingerprint payment cards is stored on a central database, which has the potential to be hacked, but this is not the case.

Instead, upon registration with a smartcard, the owner’s fingerprint image is immediately transformed into an abstract biometric certificate via encryption technology. This is then stored in the secure element of the card’s EMV chip and the owner’s data never leaves the card – making it extremely secure and reassuring.

Along with security concerns, centralising biometric data is inconvenient – requiring the user to visit a secure site to register the fingerprint to be matched to the card. Instead, with user data encrypted and stored on the payment card, the user can register their fingerprint at home through a remote enrolment process that also eliminates the risk of online hacking. The user remains fully in control of their data – a critical aspect for many consumers.

  1. Seamless customer journey from registration to transaction

The simple enrolment process breaks down a friction point associated with biometric fingerprint registration. Card enrolment captures the fingerprint image – as you do when registering it for a smartphone. The image is then encrypted and stored in the matching template held in the secure element on the card. Registration can be carried out through a variety of means, including smartphone registration, at a payment terminal or via an enrolment sleeve provided by card issuers. Regardless of the method, the registration process is secure and seamless.

Once registered, no battery is required as the card draws the power it needs for biometric authentication and secure communications with the POS terminal directly from the payment terminal itself, even when operating in contactless mode.

Another common concern is that a fingerprint won’t be seamlessly recognised at the point of transaction due to the sensor capturing the wrong angle or the fingerprint being slightly wet or dirty, requiring multiple attempts. However, biometric smart cards are designed, tested and certified to endure real-life circumstances balancing security and user experience.

Further, advanced technology anti-spoofing methods prevent any cloned or fake fingerprint to be accepted. Hence the combination of the fingerprint sensor, the biometric authentication algorithm, and the spoof detection system reduces any risk of false acceptance and deliver a flawless, secure user experience.

  1. Decreasing cost of card

Finally, there is the matter of cost. Many believe biometric cards will cost more than existing bank cards due to the complexity and engineering sophistication of the technology needed in biometric development. While this is true, cost will significantly fall with increased volumes and higher market penetration – which will bring savings and economies of scale. With the average lifetime of a card getting longer and the upfront cost being absorbed over at least 3-4 years, there is already a trend towards more sustainable and longer lasting cards.

Already today, there are still substantial ROI and customer satisfaction opportunities from smart card investments. IDEX research revealed 70% of consumers would be willing to pay a fee for a more secure bank card. Additionally, such cards have been proven to increase satisfaction and transaction volumes due to the top of wallet effect, stickiness of users (tendency for repeated use) and their appeal to new customer audiences.

The benefits of biometric payments

Biometric smart cards bring many added benefits to our lives and could ultimately introduce savings in the long run by increasing payment card security and reducing the costly threat of card fraud. When we set out the truth of biometric payment cards products and processes, it’s clear the technology has the potential to bring greater security and convenience to our payment transactions.

As biometric technology evolves, its inclusion in the payment ecosystem will make one of our most everyday experiences of paying not only more secure, but also easier and more reliable.

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Time is running out: NHS and their digital evolution journey

By Nej Gakenyi, CEO and Founder of GRM Digital

Many businesses have embarked on their digital evolution journey, transforming their technology offerings to upgrade their digital services in an effective and user-friendly way. Whilst this might be very successful for smaller and newer businesses, but for large corporations with long-standing legacy infrastructure, what does this mean? Recently the UK government pledged £6bn of new funding for the NHS, and the impact this funding and investment could have if executed properly, could revolutionise the UK public healthcare sector.

The NHS has always been a leader in terms of technology for medical purposes but where it has fallen down is in the streamlining of patient data, information and needs, which can lead to a breakdown in trust and the faith that the healthcare system is not a robust one. Therefore, the primary objective of additional funding must be to implement advanced data and digital technologies, to improve the digital health of the NHS and the overall health of the UK population, as well as revitalise both management efficiency and working practices.

Providing digital care

Digitalisation falls into two categories when it comes to the NHS – digitising traditionally ‘physical’ services like offering remote appointments and keeping electronic paper records, and a greater reliance on more innovative approaches driven by advances in technology. It is common knowledge that electronic services differ in GP practices across the country; and to have a drastically good or bad experience which is solely dependent on a geographical lottery contradicts the very purpose of offering an overarching healthcare provision to society at large.

By streamlining services and investing in proper infrastructure, a level playing field can be created which is vital when it comes to patients accessing both the care they need and their own personal history of appointments, GP interactions, diagnoses and medications. Through this approach, the NHS focus on creating world-leading care, provision of that care and potentially see waiting lists decrease due to the effective diagnosis and management enabled by slick and efficient technology.

This is especially important when looking at personalisedhealth support and developing a system that enables patients to receive care wherever they are and helps them monitor and manage long-term health conditions independently. This, alongside ensuring that technology and data collection supports improvements in both individual and population-level patient care, can only serve to streamline NHS efforts and create positive outcomes for both the patient and workforce.

Revolutionising patient experiences

A robust level of trust is critical to guaranteeing the success of any business or provision. If technology fails, so does the faith the customer or consumer has in the technology being designed to improve outcomes for them. An individual will always have some semblance of responsibility and ownership over their lives, well-being and health. Still, all of these key pillars can only stand strong when there is infrastructure in place to help drive positive results. Whilst there may be risks of excluding some groups of individuals with a digital-first approach, technology solutions can empower people to take control of their healthcare enabling the patient and NHS to work together. Tandem efforts between humans and technology

Technology must work in tandem with a workforce for it to be effective. This means the NHS workforce must be digitally savvy and have patient-centred care at the front and centre of all operations. Alongside any digital transformation the NHS adopts to improve patient outcomes, comes the need to assess current and future capability and capacity challenges, and build a workforce with the right skills to help shape an NHS that is fit for purpose.

This is just the beginning. With more invtesement and funding being allocated for the NHS this is the starting point, but for NHS decision-makers to ensure real benefits for patients, more still needs to be done. Effective digital evolution holds the key. Once the NHS has fully harnessed the poer of new and evolving technologies to change patient experiences throught the UK, with consistent communication and care, this will set the UK apart and will mark the NHS has a diriving example for accessible, digital healthcare.

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Driving Business Transformation Through AI Adoption – A Roadmap for 2024

Author: Edward Funnekotter, Chief Architect and AI Officer at Solace

From the development of new products and services, to the establishment of competitive advantages, Artificial intelligence (AI) can fundamentally reshape business operations across industries. However, each organisation is unique and as such navigating the complexities of AI, while applying the technology in an efficient and effective way, can be a challenge.

To unlock the transformational potential of AI in 2024 and integrate it into business operations in a seamless and productive way, organisations should seek to follow these five essential steps:

  • Prioritise Data Quality and Quantity

Usefulness of AI models is directly correlated to the quantity and quality of the data used to train them, necessitating effective integration solutions and strong data governance practices. Organisations should seek to implement tools that provide a wealth of clean, accessible and high-quality data that can power quality AI.

Equally, AI systems cannot be effective if an organisation has data silos. These impede the ability for AI to digest meaningful data, and then provide the insights that are needed to drive business transformation. Breaking down data silos needs to be a business priority – with investment in effective data management, and an application of effective data integration solutions.

  • Develop your own unique AI platform

The development of AI applications can be a laborious process, impacting the value that businesses are gaining from them in the immediate term. This can be expedited by platform engineering, which modernises enterprise software delivery to facilitate digital transformation, optimising developer experience and accelerating the ability to deliver customer value for product teams. The use of platform engineering offers developers pre-configured tools, pre-built components and automated infrastructure management, freeing them up to tackle their main objective; building innovative AI solutions faster.

While the development of AI applications that can help streamline infrastructure, automate tasks, and provide pre-built components for developers is the end goal, it’s only possible if the ability to design and develop is there in the first place. Gartner’s prediction that Platform Engineering will come of age in 2024 is a particularly promising update.

  • Put business objectives at the heart of AI adoption – can AI deliver?

Any significant business change needs to be managed strategically, and with a clear indication of the aims and benefits they will bring. While a degree of experimentation is always necessary to drive business growth, these shouldn’t be at the expense of operational efficiency.

Before onboarding AI technologies, look internally at the key challenges that your business is facing and question “how can AI help to address this?” You may wish to enhance the customer experience, streamline internal processes or use AI systems to optimise internal decision-making. Be sure the application of AI is going to help, not hinder you on this journey

Also remember that AI remains in its infancy, and cannot be relied upon as a silver bullet for all operational challenges. Aim to build a sufficient base knowledge of AI capabilities today, and ensure these are contextualised within your own business requirements. This ensures that AI investments aren’t made prematurely, providing an unnecessary cost.

  1. Don’t be limited by legacy systems

Owing to the complex mix of legacy and/or siloed systems that organisations employ, they may be restricted in their ability to use real-time and AI-driven operations to drive business value. For example, IDC found that only 12% of organisations connect customer data across departments.

Amidst the ‘AI data rush’ there will be a greater need for event-driven integration, however, only an enterprise architecture pattern will ensure new and legacy systems are able to work in tandem. Without this, organisations will be prevented from offering seamless, real-time digital experiences, linking events across departments, locations, on-premises systems, IoT devices, in a cloud or even multi-cloud environment.

  • Leverage real-time technology

Keeping up with the real-time demands of AI can pose a challenge for legacy data architectures used by many organisations. Event mesh technology – an approach to distributed networks that enable real-time data sharing and processing – is a proven way of reducing these issues. By applying event-driven architecture (EDA), organisations can unlock the potential of real-time AI, with automated actions and informed decision making using relevant insights and automated actions.

By applying AI in this way, businesses can offer stronger, more personalised experiences – including the delivery of specialised offers, real-time recommendations and tailored support based on customer requirements. An example of this is in predictive maintenance, in which AI is able to analyse and anticipate future problems or business-critical failures, ahead of them affecting operations, and dedicate the correct resources to fix the issue, immediately. By implementing EDA as a ‘central nervous system’ for your data, not only is real-time AI possible, but adding new AI agents becomes significantly easier.

Ultimately, AI adoption needs to be strategic, avoiding chasing trends and focusing instead on how and where the technology can deliver true business value. Following the steps above, organisations can ensure they are leveraging the full transformative benefit of AI and driving business efficiency and growth in a data driven era.

AI can be a highly effective tool. However, its success is dependent on how it is being applied by organisations, strategically,  to meet clearly defined and specific business goals.

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Preparing for the Surge: Meeting the MCS Requirements of Electric Trucks

John Granby, Director of eTruck & Van, EO Charging and Erik Kanerva, Sales Director at Kempower

Auto electrification is moving at a rapid pace, with electric vehicles (EVs) going from a passion project for early technology adopters to the mainstream – especially when you consider the need to electrify consumer and commercial vehicles ahead of the government’s 2035 Zero Emission Vehicle mandate.

Electrification is also starting to play a vital role in public policy and commercial plans, leading to vehicle availability and a variety of improvements and increasing interest among commercial fleets’ prospective customers. As a result, all of the main car and van manufacturers have a respectable EV offering, and the eBus industry is well on its way to proposing a similarly credible offering for citizens.

Heavy-duty vehicle electrification has progressed slowly, but the pace has picked up over the last year, with several of the major truck manufacturers testing completely electric heavy trucks that are now near-ready to enter the general market.

This is a critical shift in the move towards net zero, given that heavy commercial vehicles account for around 25% of CO2 emissions from road transport emissions in the EU and approximately 6% of the region’s overall emissions. It’s a similar situation in the US, where medium and heavy-duty trucks account for around 29% of total road transport emissions or approximately 7% of the country’s total but make up fewer than 5% of all vehicles on the road.

Having clear goals and objectives in place for fleet electrification will be vital to ensuring the transport sector is on track. For example, Scania’s goal is that 50% of all vehicles it sells annually by 2030 will be electric. Despite Scania being the slowest into the market with battery electric vehicles, other vehicle manufacturers are following the same target, with Volvo Trucks setting itself a target for 50% fully electric vehicles by 2030 and the same with Renault, for example.

Meeting this ambitious goal will require the appropriate charging infrastructure in place so customers have the confidence to invest in the large-scale electrification of their fleets. That is one of the reasons why charging system manufacturer Kempower expects the commercial vehicle DC charging market in Europe and North America to have a 37% compound annual growth rate until 2030.

Trucks require substantial battery packs to provide a similar range as traditional engines, and having the right infrastructure in place to keep them regularly charged is certainly a key factor to consider when electrifying truck fleets. According to the European Automobile Manufacturers’ Association (ACEA), trucks will require up to 279,000 charging outlets by 2030, with 84% located in fleet hubs. By 2030, buses will require up to 56,000 charging outlets, with fleet hubs accounting for 92% of the total.

The Charging Interface Initiative (CharIN) is a global organisation that has been working on a standard for the rapid charging of trucks for several years. CharIN developed the Megawatt Charging System (MCS) concept, which serves as the foundation for the ISO and IEC standards which govern the design, installation, and operation of truck fast charging infrastructures.

The MCS is intended to standardise the quick delivery of enormous amounts of charging power to vehicles and provide stronger communication, which minimises downtime caused by unsuccessful charging events.

Customers who drive commercial vehicles follow particular driving habits. By taking advantage of the required break time from the hours-of-service restrictions governing their drivers, customers can travel further each day thanks to the increased charge rate that MCS offers. Better electrification of commercial cars is made possible by legislation that mandates that drivers take rest breaks. As a result, shorter charging durations to accommodate these breaks are beneficial.

The MCS will operate at up to 3,000A and 1,25 KV at its final development stage, delivering up to 3,75 MW of power when charging. With the backing of a significant segment of the industry, MCS is founded on an international consensus on technical standards. An internationally recognised standard is essential to promote harmonised solutions that reduce costs and boost interoperability without sacrificing safety and uptime.

Trucks on the highway are a key focus of the MCS, not only depot pricing. Large truck units operating long-haul routes and some smaller rigid trucks operating cross-border short-haul deliveries—such as logistics organisations operating deliveries between the United Kingdom and continental Europe—pay particular attention to this issue.

Most MCS charging occurs while drivers take breaks from their routes, but some depots may have a single MCS charger on site to do a flash charge if a truck needs to be turned around quickly. In order to balance this unit’s demand against other chargers on site, load management is crucial because it will require a power supply of at least 1 MW+.

Fleet operators should look to consider incorporating MCS into their whole charging ecosystem and solutions, regardless of whether they are thinking about how electrification will affect their fleet of vehicles on the road or how their depots will operate.

Adopting cutting-edge energy management technology solutions will enable effective fleet electrification, particularly at depots. Investing in effective load management technologies will be critical to maximising existing grid infrastructure capacity while decreasing the need for additional investments in generation or distribution capacity.

Investing in and deploying effective energy management technologies is the key to a smoother, more efficient shift for commercial fleet operators. They are critical in lowering energy expenses, both economically and environmentally.

Energy management solutions for charging electric fleets will also help maximise existing grid capacity, reducing the need to invest in new generation or distribution capacity. This will be an essential factor for fleet managers to consider as eTruck fleets expand and other commercial vehicle fleets, such as buses, increase demands on infrastructure.

With unprecedented energy and investment going into electrification, 2024 looks to be a pivotal year for picking up the momentum of progress around MCS in the logistics sector. If done right, it will create a shift of optimism in the market to accelerate the electrification of commercial fleets and promises to positively impact other sectors, such as marine and aviation, contributing significantly to reducing carbon emissions.

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