Finextra recently spoke with Eduardo Azanza, CEO and co-founder of digital identity verification platform Veridas, about the transformative role of biometrics in the cybersecurity sector. The conversation highlighted Veridas’ significant advancements in digital identity solutions and their potential to reshape security protocols.
Azanza shared insights into Veridas’ evolution from providing high-security printing solutions to specializing in digital identity verification. The company has successfully completed over 100 million online identity verifications across various sectors, including banking, insurance, telecommunications, utilities, hospitality, and government agencies.
He noted that the adoption of biometrics by the banking industry has been largely driven by regulatory requirements. “The banking sector was among the first to integrate biometrics due to the strict regulations it faces,” said Azanza. “In 2016, certification authorities in Germany and Spain allowed banks to offer remote account openings through identity verification technologies. These regulations accelerated the implementation of biometrics in banking.”
As the banking sector embraced biometric technology, other industries began to follow, making biometrics a key component of contemporary authentication methods. Azanza emphasized that Veridas aims to facilitate a smooth authentication process, blending physical and digital identity through biometric signatures. “Biometrics allows individuals to be recognized and identified as naturally as possible,” he remarked.
Operating in 25 countries and serving hundreds of clients, including 50 banks, Veridas has partnered with BBVA since 2015 to broaden user access and bolster cybersecurity in areas where BBVA operates.
Azanza highlighted the rise of seamless authentication technologies to improve customer experiences, particularly for users accessing account information. Previously, customers faced extensive questioning to verify their identities; however, advancements now enable voice recognition solutions that identify users by their natural speech within seconds, reducing the potential for fraud.
He also discussed the “magic triangle of biometrics,” which consists of user experience, security, and cost-effectiveness.
A practical example of Veridas’ technology is its implementation for pensioners in Mexico, alleviating the need for them to physically visit bank branches to confirm their status. Instead, the system initiates an automatic phone call where pensioners confirm their continued eligibility for benefits simply through their voice, regardless of the language, streamlining the process and enhancing the user experience while mitigating potential fraud.
Azanza reflected on the evolution of biometric technology, particularly the shift from early, inefficient voice biometrics to more advanced face recognition and voice authentication solutions. “The maturity of the technology is expanding use cases,” he noted, adding that interests in identity verification for payments are growing. “Using facial recognition and voice as secondary authentication factors is also gaining traction.”
Discussing future trends in security, Azanza emphasized the role of identity wallets in facilitating banking authentication. He acknowledged that regulations like PSD2 pose challenges to online commerce by complicating two-factor authentication, often making it cumbersome with methods such as One-Time Passwords (OTPs).
Despite these challenges, he expressed optimism about the industry’s ability to enhance authentication experiences, aiming for seamless verification through third-party biometrics.