Bringing together financial assets, transactions, credit cards, and bank accounts is one of the big trends in FinTech. Banks and FinTech companies that create secure one–card–to–rule–them–all solutions will leave their rivals behind and become trendsetters.
Integrating accounts is necessary to reach tech–savvy consumers
As financial and banking technologies shift to digital, it appears that the dream of accessing all your accounts from just one place is about to become reality. You likely have several credit and debit cards in your wallet, and it takes a lot of effort to track all your transactions. This problem of fragmentation is challenging both traditional banks and innovative FinTech providers. What people want is a single service that lets them access all their accounts, and there’s no better solution than integrated financial processing.
People are eager to find solutions to better manage personal and corporate finances. There’s growing demand for a single card that can be used for all transactions. This demand is forcing traditional banks and FinTech startups to integrate services in order to support accessibility and innovation. It’s telling that HSBC recently launched its new app with a feature that lets users add and manage their accounts across different banks via a single interface. Santander Group has announced its own plans to invest in FinTech startups that are working on integrating multiple accounts into one card.
New opportunities for FinTech software providers
The fact that leading banks are investing in startups that integrate accounts proves that the future will almost certainly include multi-functional cards. The UK has become the first country to implement the open banking concept by passing the Payment Services Directive 2 (PSD2). Legislators in the US and the EU are also working to conform with open banking standards. This rapidly changing legal framework suggests that the monopoly which banks hold on financial data is about to end.
Upcoming transformations will allow FinTech companies to unbundle various parts of the banking sector. London startup Curve has gone a step further. The company recently announced the consumer launch of their app and has 50,000 people on a waiting list to start using their Curve card. One of Curve’s most innovative features is called Go Back in Time, which lets customers change which card a purchase is charged to within two weeks of the transaction.
Security issues hamper wide market releases
Consolidating all credit and debit cards into one isn’t just about integrating technologies or optimizing; it’s a new philosophy of financial management. You’ll no longer have to depend on financial institutions but will finally be able to control and manage finances on your own terms. However, solutions offered by numerous FinTech companies and banks remain concepts or products in beta.
The problem is that there are too many unsettled security issues preventing the one-card-for-all idea from taking over. If the app on your smartphone is hacked, for instance, you risk losing money from all your cards at once. Restoring data in case you lose your device or card is another problem. Advanced software solutions are required. Our experts have ideas on using electrical bioimpedance data, scanning blood vessels, or taking DNA samples for authorization to overcome these security concerns.
Using bioimpedance data to protect your finances
The major plus to using biompedance data for verification is its availability. Enabling hardware devices, including a card itself, to measure body composition, electrical resistance, or other basic physical features doesn’t require huge investments. Bioimpedance data can easily be scanned and recognized before a device owner is allowed to use a multi-purpose card.
However, this solution has one substantial drawback: approximately one person out of 100 may have the same bioimpedance characteristics as you. Still, now’s not the time to ignore biompedance data as a possible means of securing finances. Facebook continues to invest in augmented reality apps that use bioimpedance data, and improved algorithms are likely to reinforce the efficiency of physical data as a means of digital security.
Securing accounts with blood vessel scanning
Scanning blood vessels is an exceptionally secure way to verify a user’s identity. Fingerprints may be easily traced, copied, and replicated, but blood vessels are hidden from a hacker’s reach. Blood vessels may be scanned on different body parts including the retina, fingers, and face. Using computerized tomography (CT) or computerized axial tomography (CAT) technology, scanners can produce detailed images of blood vessels. The larger the area scanned, the more accurate the result.
The problem with scanning blood vessels is that true accuracy can be achieved only with massive devices. Integrating high-performance scanners into mobile and portable devices like a smart credit card is a necessary step to make blood vessel imaging an effective and accessible means of financial security.
Don’t forget about DNA scanning
In the past, identifying DNA samples could take days or even weeks. Today, it can be done in minutes. There’s severe competition among biometric startups to create portable, inexpensive devices that can quickly verify DNA. For example, the MinION device pulls DNA through more than 500 nanoscopic pores to scan the so-called DNA letter, which is measured by an electronic signal produced by each nucleotide.
Developers of DNA scanning hardware are in most cases targeting complex security systems such as for airports and government agencies. But the demand for FinTech innovations is also attracting great investment for developing similar software for the financial sector.
In some countries, including in the UK, large government-run DNA databases are already used for healthcare purposes and for criminal investigations. But DNA scans could also be used to unlock multi-purpose cards. Imagine an IoT device integrated into a card that scans a DNA sample, sends information to a database, and verifies your identity. The whole process could take mere seconds and could support consolidated, secure, and effective financial management solutions.
The attractiveness of each of these authentication options depends on the specific demands, resources, and goals of a bank or FinTech provider. What’s obvious is that overcoming security challenges and having secure multi-purpose cards would help businesses reach new markets and attract customers who are eager for secure and efficient access to financial services. Consulting with experts to choose either a single security solution or a combination of security solutions is the first step in bringing these goals to life.
Our FinTech experts are ready to help you overcome the security challenges that are holding back promising integrated financial solutions. Contact us to take a step toward a new way of managing finances.