Biometric Payment Authentication (BPA) – Corporate Banking Transactions: Pakistan Perspective

1. Introduction

The term ‘authentication’ describes the system of verifying the identity of someone or entity. Within corporate e-banking systems, the authentication technique is used to control get right of entry to corporate customer bills and transaction processing. Authentication is typically based upon corporate consumer customers supplying valid identification records observed by one or more authentication credentials (factors) to show their identity.

Customer identifiers may be person ID/password or a few shapes of consumer ID/token tool. An authentication thing (e.G. PIN, password, and token response set of rules) is a mystery or particular statistics linked to a specific patron identifier used to verify that identity.

Generally, authenticating customers is to have them present some issue to prove their identification. Authentication elements include one or greater of the following:

Something someone knows – usually a password or PIN. If the user types in an appropriate password or PIN, get entry is granted. Something a person has – most generally a physical tool called a token. Tokens consist of self-contained devices that need to be physically connected to a computer or gadgets with a small screen wherein a one-time password (OTP) is displayed or generated after inputting PIN the user must enter to be authenticated.

Something someone is – maximum normally a physical characteristic, including a fingerprint. This type of authentication is known as “biometrics” and often calls for installing unique hardware on the gadget to be accessed.

Authentication methodologies are numerous and range from easy to complicated. The level of safety furnished varies based on both the method used and how it’s miles deployed. Multifactor authentication uses two or more factors to affirm purchaser identification and allows corporate e-banking persons to authorize payments. Authentication methodologies based on multiple elements can be extra tough to compromise and need to be considered high-danger conditions. A particular authentication method’s effectiveness depends on the integrity of the selected product or system and how it is applied and controlled.

‘Something, a person, is.’

Biometric technology discovers or authenticates a dwelling character’s identity based on a physiological feature (something someone is). Physiological traits consist of fingerprints, iris configuration, and facial shape. The method of introducing human beings right into a biometrics-based gadget is called ‘enrollment.’ In enrollment, samples of information are taken from one or extra physiological traits; the samples are transformed into a mathematical model or template, and the template is registered right into a database on which a software utility can carry out an analysis.


Once enrolled, customers interact with the stay-test manner of the biometrics generation. The stay scan is used to become aware of and authenticate the purchaser. The consequences of a stay scan and a fingerprint are compared with the registered templates saved within the system. If there is a healthy, the customer is authenticated and granted get right of entry.

A biometric identifier, which includes a fingerprint, may be used as part of a multifactor authentication device, blended with a password (something someone knows) or a token (something a person has). In Pakistan, banks frequently use element authentications i.E. PIN and token, combined with the user ID.

Fingerprint popularity technologies analyze international sample schemata at the fingerprint, in conjunction with small unique marks called trivia, which are the ridge endings and bifurcations or branches in the fingerprint ridges. The records extracted from fingerprints are extremely dense, and the density explains why fingerprints are a completely reliable method of identification. Fingerprint popularity systems keep the best facts describing the precise fingerprint trivia; photographs of real fingerprints aren’t retained.

Banks in Pakistan imparting Internet-based services and products to their customers should use powerful high-hazard transactions regarding getting entry to patron statistics or the budget movement to different events or any other financial transactions. The authentication strategies employed by way of the banks need to be suitable to the risks related to one’s services and products.

Account fraud and identity robbery are regularly the results of unmarried-aspect (e.G. ID/password) authentication exploitation. Where danger checks indicate that using single-issue authentication is inadequate, banks should implement multifactor authentication, layered protection, or other controls reasonably calculated to mitigate those risks.

Although some of the Banks, especially the predominant multinational banks, have begun to use -thing authentication but preserving in view the data security, extra degree wishes to be taken to keep away from any unexpected circumstances that may also result in monetary loss recognition damage to the bank.

There is an expansion of technologies and methodologies banks use to authenticate customers. These methods encompass using patron passwords, non-public identification numbers (PINs), digital certificates, the usage of public key infrastructure (PKI), physical devices consisting of clever playing cards, one-time passwords (OTPs), USB plug-ins, or different kinds of tokens.

However, in addition to these techniques, biometric identity may be an added benefit for the 2-thing authentication:

a) as an extra layer of safety

b) cost-powerful

Existing authentication methodologies utilized in Pakistani Banks involve basic elements:

i. Something the person knows (e.G. Password, PIN)

ii. Something the consumer, has (e.G. Smart card, token)

This paper’s research proposes another layer that is a biometric feature, including a fingerprint in the mixture to the above.

So including this, we can get the beneath authentication methodologies:

i. Something, the user, is aware of (e.G. Password, PIN)

ii. Something, the person, has (e.G. Smart card, token)

iii. Something the consumer is (e.G. Biometric characteristic, along with a fingerprint)

The achievement of a specific authentication approach relies upon on extra than the technology. It additionally depends on appropriate regulations, processes, and controls. An effective authentication technique has to have a purchaser reputation, reliable overall performance, scalability to deal with growth, and interoperability with present systems and destiny plans.

2. Methodology

The methodologies applied in this paper build on a two-step method; first, via my beyond revel in the running in the Cash Management department of a leading multinational financial institution, implementing digital banking solutions for company clients all through Pakistan and across geographies.

Secondly, consulting and interviewing buddies working in Cash Management departments of other banks in Pakistan and the Middle East for better knowledge of the technology used inside the market; its blessings and results for a hit implementation.

3. Implementation in Pakistan

Biometric Payment Authentication (BPA) i.E. Biometric characteristics, consisting of a fingerprint for authorizing economic transactions on corporate e-Banking platform implementation in Pakistan, can be mentioned in this phase. First the descriptive, then the economic gain analysis for adopting the supplied method.

As the era could be very tons advanced these days, fingerprint scanners are now effortlessly available on nearly every laptop, or a stand-by myself scanning tool may be attached to a computer. Also, with the appearance of clever phones, now the fingerprint scanner is available on phones as nicely (e.G. Apple iPhone, Samsung cell units, and so on)

In Pakistan, stop customers shouldn’t have a problem using a fingerprint-scanning tool on a computer or a clever telephone. All work that desires to be executed must be carried out via banks introducing this methodology.

Besides this, Pakistan is an excellent vicinity to put in force biometrics primarily based authentication, especially because:

a. CNICs are issued after taking the citizen’s biometric facts – in particular fingerprints

b. Telco groups need to keep and validate a person’s fingerprints earlier than issuing a SIM card

These examples show that a huge populace in Pakistan is already acquainted and secure with the biometrics (fingerprints) method. However, banks should broaden their e-banking portal or software by and with the aid of accepting fingerprints for corporate users. The e-banking portal could invoke the cease consumer’s fingerprint device for either login or authenticating financial transactions. Enrollment can be accomplished remotely through the first-time login into the e-banking platform after a person has obtained setup commands and passwords or at the financial institution’s customer service middle.

This article indicates banks in Pakistan transport multifactor authentication through the PIN and; fingerprints. Fingerprints are unique and complicated sufficient to offer a sturdy template for authentication. Using multiple fingerprints from the identical individual provides an extra degree of accuracy. Fingerprint identification technologies are the various maximum mature and correct of the diverse biometric techniques of identification.

Now let’s speak about PIN usage’s economic blessings and; fingerprints instead of token gadgets for authentications. And before we deep dive into the records, first, investigate the contemporary procedure of token inventory ordering to its shipping to the end consumer, after which its renovation if any token is misplaced or faulty.

Most banks in Pakistan order and import tokens from a US-based enterprise known as ‘VASCO Data Security International Inc..’ Once the order is located, the VASCO ships the token to the respective ordering bank, and the bank receives the tokens after clearing the custom responsibilities. Banks settle the VASCO invoices by sending returned the quantity via outward remittance at the courier fees side. Banks then initialize the token and, upon consumer written request, troubles the token to a stop user.

The token is couriered to the cease person, and training is carried out thru telephone or bodily go-to of the bank’s representative to the purchaser’s workplace. Any lost or defective token is replaced with new ones and once more couriered to stop customers. Tokens are lower back to banks if any give up user resigns their employer or is being moved into some different role that doesn’t contain banking-related operations or use of e-banking platform.

Theoretically, it seems pretty easy, but almost those are very time-consuming sports, and the fee is associated with each step noted above. Now, let’s do a little fee calculation associated with the above activities and construct some statistics to complete price advantage analysis. Currently, some of the banks in Pakistan, regionally, have brought fingerprint recognition technology to authenticate ATM users and are in the section of doing away with the want for an ATM card for you to sooner or later assist banks in fee-saving of changing misplaced or stolen playing cards.

Cost calculations are approximations and no longer to be taken as the actual price for any budgeting.

3.1. Descriptive Statistics

The descriptive information for token stock ordering to its transport to the stop consumer after which its upkeep, if any token is lost or faulty (statistics built on the kind of 1000 tokens intake in step with a year in keeping with the financial institution), are proven in the underneath facts.

Descriptive Statistics

Tokens Cost (a thousand tokens) 15,000USD (1,569,000PKR)

Custom Duty 4,610USD (482,206PKR)

Courier to End User 922USD (96,441PKR)

Training Cost 7376 (771,530PKR)

Total 27908USD (2,919,177PKR)Banking

The above stats show that approximately 28000USD (quantity in USD rounding off to heaps) is spent on tokens by an unmarried financial institution that could easily be saved if the token is replaced via fingerprints. It’s now not the handiest price saving for a bank; however, it also eases banks’ management and maintenance.

The Forex market interbank rates as of December 23, 2016, http://www.Forex.Com.Pk

4. Change Management Grid

Stage One: “Coming to Grips with the Problem”

Mindset (Thinking/Understanding)

a. Currently, banks are paying masses of cost on physical token buying that may without difficulty be removed with the aid of using biometric methodology together with fingerprints.

Motivation (Emotional/Intuitive Dynamics)

a. The modern vintage technique of token ordering takes time and fee till it reaches banks. Then specific training needs to be performed for giving up customers for token device activation and usage. Maintenance is any other massive pastime for banks. As biometric scanners are easily available on laptops and smartphones, this new trade is, without problems, possible with no high cost. Fingerprint authentication will ease end-users from remembering too many passwords, and they no longer have to carry the bodily gadgets alongside them all the time.

Behavior (Capability)

A. Banks in Pakistan need to be visited, and right shows may be conducted to brief their I.T. Group with this easy to and; cozy era, finance group for the cost benefits, and their operations team approximately decreasing their operation protection.

B. Demos can also be arranged to expose in life how this new technology assists banks.

C. End consumers will have to use a fingerprint to log in or authenticate transactions in preference to bodily tokens.

Stage Two: “Working thru the Change”

Mindset (Thinking/Understanding)

a. Biometric authentication will help banks to lessen fees and reduce operational trouble. This era will also ease off-stop customers with their each day e-banking activities. Proper education to the bank concerned team could be conducted. The end consumer can also be guided with fingerprint enrollment.

Motivation (Emotional/Intuitive Dynamics)

A. Banks have to invest first to adopt this new era; however, this may reduce the routine price and operational protection.

B. End customers will need no extra carry any gadgets and carry out banking sports with a finger touch.

Behavior (Capability)

A. Post-implementation reviews will help banks approximately the comments in their consumers who have begun using the new generation, and consumers enjoy helping banks decorate their product.

B. With fingerprint technology, company customers, will no longer pay any extra price to ask for tokens.

Stage 3: “Attaining and; Sustaining Improvement”

Mindset (Thinking/Understanding)

A. Banks to preserve Client experience forums to help them with patron feedback and supply new thoughts on future enhancements.

B. Banks to update Departmental Operating Instructions (DOI) for employees, emphasizing their roles and responsibilities throughout this new era.

Motivation (Emotional/Intuitive Dynamics)

A. Banks can launch a reward marketing campaign for employees who will successfully migrate the e-banking customers from token to fingerprint generation.

B. Likewise, a few promotions of price waivers also can be provided to customers for availing this era.

Behavior (Capability)

A. Training and; retraining to be conducted for any new bank staff or current group of workers to emphasize biometric authentication benefits.

B. Customer may be retrained or refreshed about this era via ship regular product brochures and short videos on training pieces.

C. Quarterly comments might be carried out across all customers to evaluate their biometric authentication information and collect new ideas on future enhancements.

5. Monitoring / Evaluating

Banks being a provider-orientated enterprise, usually cognizance of ‘Customer First.’ Through patron enjoy boards, consumer feedbacks can be attained, and problems, if any, faced can be addressed via eager observe-united states. Very last feedback could be taken from the client upon decision.

Post-implementation will supply a clearer picture of the brand new biometric methodology applied and get further viewpoints for destiny enhancements.

6. Conclusion

This study pursues looking at the alternative of physical token usage of company e-banking platform users with the end customers’ fingerprints for their login into e-banking channel and financial transactions authentication. This study’s findings show that this new era will benefit the banks from in value and; protection perspective but may even ease the company cease users with a peace of thoughts of no longer remembering too many passwords or sporting the bodily token anyplace they roam.

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