IBM to reduce transaction cost of Biometric cards
Leading IT solutions provider IBM is working on a technology which would largely reduce the cost of transaction carried out through biometric smart cards, the new engine of growth for the microfinance sector.
By PTI |
MUMBAI: Leading IT solutions provider IBM is working on a technology which would largely reduce the cost of transaction carried out through biometric smart cards, the new engine of growth for the microfinance sector.
A biometric card provides customer authentication through fingerprint and the card is used on hand-held devices to get the entire solution going. However, the cost incurred remains to be a challenge as the volumes are low and ticket size of the transaction is small.
IBM, which has partnered with smart card provider Financial Information Network and Operations Private Ltd (FINO) to offer the complete backend support, expects that product will make the processing faster.
"We expect more than 10 million customers to be on the biometric smart cards platform over the next five years. To support the growth, the product will make transactions speedier and leaner thereby reducing the cost," said, IBM Head (Strategic Solutions-BFSI) Subrata Dasgupta.
With more banks and financial institutions giving priority to microfinance in both rural and urban areas, smart cards are the safest way to authenticate a customer and fulfill the Know-Your-Customer (KYC) norms.
"It also eliminates the risk of a possible fingerprint impersonation," Dasgupta said.
A biometric card provides customer authentication through fingerprint and the card is used on hand-held devices to get the entire solution going. However, the cost incurred remains to be a challenge as the volumes are low and ticket size of the transaction is small.
IBM, which has partnered with smart card provider Financial Information Network and Operations Private Ltd (FINO) to offer the complete backend support, expects that product will make the processing faster.
"We expect more than 10 million customers to be on the biometric smart cards platform over the next five years. To support the growth, the product will make transactions speedier and leaner thereby reducing the cost," said, IBM Head (Strategic Solutions-BFSI) Subrata Dasgupta.
With more banks and financial institutions giving priority to microfinance in both rural and urban areas, smart cards are the safest way to authenticate a customer and fulfill the Know-Your-Customer (KYC) norms.
"It also eliminates the risk of a possible fingerprint impersonation," Dasgupta said.
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