The World Experience of Biometrics in Banking Industry and Prospects of Its Implementation in Ukraine

THE WORLD EXPERIENCE OF BIOMETRICS IN BANKING INDUSTRY AND PROSPECTS OF ITS IMPLEMENTATION IN UKRAINE Formulation problems. In the wake of the financial crisis, banks around the world are having to adapt to a very different – and rapidly-changing – economic, regulatory and business environment. Ongoing shifts in customer behavior and advances in technology are changing not only what customers expect of banks, but also how banks and non-bank competitors deliver financial services. Banks play a critical role in the modernization of the economy. The number of bank customers is continuously growing, as well as their needs to various banking products and services. With the increase of client base of the bank a fraud risks will inevitably grow too, which cause not only financial, but also reputational losses. It should also be noted that problems with the identification of clients can not only create a risk of incurring financial losses by credit institution, but also cause sanctions used by regulators because of violation of regulations. World experience and the activities of several world known banks indicate that biometric technology are effective in minimizing these risks. In this research, I studied biometric authentication methods used in different banking operations. At last, I discuss about solutions for improvement of authentication for Ukraine’s banking system. The role of biometrics in banking were researched by such scientists as Landon B., Ratha N. K., Connell G. H., Williams G. O., and others [1]. The aim of the study is to prove that biometrics is vital part of banking system of the future and to give practical examples of its implementation in Ukraine. Obtained results: Research show us that among the world’s banks that use biometric technology, 52% are located in Asia. The second continent with the majority of banks is America that includes 32% of all. Among the banks in the

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