For the first time in financial world, Shinhan Bank along with Fujitsu succeeded in developing equipment that is equipped with vein authentication. It is able to do non face-to-face channel authentication and it is expected that it will be a catalyst that will vitalize biometric authentication in financial world at large hereafter.
According to financial world on the 22nd, Shinhan Bank recently finished developing prototype for ‘Vein Authentication’ applied device that utilizes vein structure in hand and it is starting non face-to-face authentication service that uses vein authentication.
It is the first time when large-sized bank institution commercializes vein authentication that is chosen as the most difficult biometric technology to be commercialized.
A person affiliated with Shinhan Bank said that it is true that Shinhan Bank developed prototype with Fujitsu, it cannot give any detailed information because they are discussing range for detailed business.
To commercialize vein authentication in first half of 2015, Shinhan Bank worked with Fujitsu and constructed a separate task force to push for development operation. It formed a separate task force under Shinhan Bank’s Strategy Planning Department and recently finished developing equipment that is equipped with vein authentication. Vein authentication distinguishes individuals by releasing near-infrared ray into hand or fingers and extracting vein patterns.
It is however unclear whether or not Shinhan Bank will introduce this method at once into non face-to-face channel authentication. Not only it needs to receive an approval from financial authorities to consider biometric authentication as one of additional authentication methods, there are still a lot of work to do to have it chosen as a substitute plan for internet-specialized bank’s personal authentication because it is still in an early stage. As large-sized bank, not an IT business, personally set out to develop biometric authentication and succeed in developing such product, it is predicted that discussion about financial institution’s substitute authentication that utilizes biometric authentication in second half of 2015 will progress rapidly.
It is predicted that world’s market size related to biometric authentication will close in to 9.6 billion dollars (about 11 trillion KRW) in 2016, and it is also predicted that Korea’s market will grow to a market that is worth 260 million dollars. After certificate mandatory clause became abolished recently, biometric authentication is suddenly rising as an alternative for personal authentication.
Samsung Pay chose fingerprinting authentication, and discussion about utilizing biometric authentication in FinTech payment market is being actualized. Nonghyup Bank, IBK Bank, BC Card, and etc. are currently examining many businesses that are applied with biometric authentication technology.
Staff Reporter Gil, Jaeshik | osolgil@etnews.com