Page 22 - Banking Finance February 2021

PRESS RELEASE

ecommerce players, or to help boost financial wellness With better technology capabilities and more agile
given economic conditions. With banks keenly looking for structures, they will continue to complement larger banks
new partners, the fintech firms with mature products and and will emerge as attractive partnership or M&A targets
technologies will make for natural targets - both for for established Indian banks in 2021. Specific to India, the
collaborations as well as technology licensing deals or in neobanks are also likely to face more competition with the
some cases even acquisitions. moot proposals to grant additional banking licenses to large
corporate or industrial houses and allowing the conversion
6. FinTech, Small banks and Neo-banks will grow their
of Payment Banks to Small Finance Banks.
foothold while also facing stiffer competition
Smaller community banks in developed economies like the “Banks in India will have their tasks cut out in dealing with
USA have outperformed larger banks in supporting local a rapidly evolving regulatory environment on the top of
businesses and communities during the pandemic and they ever-increasing competition. We believe that they can
will continue to grow strong on the back of loyal position themselves well for success by ensuring an
relationships. In India and other emerging markets, neo- unwavering focus on value creation for customers, and on
banks will continue to gain more ground in 2021, as they developing the ecosystem through partnerships,
are both cost-effective and faster than conventional banks. collaboration or even M&As,” Nanda Kumar added.

Why biometric contactless cards will soon become the new standard

Payments should be time convenient and secure at the extremely fast and easy. Users do not need to type in a PIN
same. Biometric contactless cards not only meet these or give a signature, they can apply the same ergonomic
standards, but go above and beyond them. “tap & go” movement as with their normal contactless
Giesecke+Devrient (G+D) names five key reasons why the cards, which has already become their habit.
future of contactless card transactions belongs to biometric
payment cards. 3. Freedom from restrictive transaction limits: Payment
with conventional contactless cards is usually restricted to
Enjoying the convenience of “tap & go” contactless card a specific limit. Not so with biometric payment cards. Due
payments while benefiting from the security of strong to their high security level, no restrictions are necessary
authentication: biometric contactless cards make it with biometrically secured contactless card payments.
possible. During the “tap & go” hand movement, the owner
4. Higher hygenic standard: Holders only have physical
simply places a finger onto an embedded fingerprint reader
contact with their own card. Foreign PIN pads or
on the card. This activates the comparison of the fingerprint
touchscreens do not have to be touched. Especially in times
with the card owner’s initially registered fingerprint, which
is securely stored on the card. The result of the comparison like these, this is an attractive option.
– the confirmation or the rejection – is then sent via wireless 5. Usable (nearly) everywhere: The biometric cards work
connection to the cash register's terminal, enabling or with all point-of-sale (POS) readers that are contactless-
blocking the payment transaction. payment-capable and support Near Field Communication
(NFC), meaning they are compatible with the vast majority
G+D predicts that such biometric payment cards will soon
of existing readers globally.
find their way into the wallets of average consumers due
to their undeniable advantages: "The future belongs to payment solutions that are easy to
use and secure at the same time," says Mikko Kähkönen,
1. Safety and data protection: The biometric data never
responsible for the Card Products Portfolio at G+D. "As our
leaves the card. It is neither transmitted to an external
pilot projects with several commercial banks worldwide
system nor stored in a central database. No one but the
underline, this is particularly true with biometric payment
owner themself can use the card, so hackers and thieves
cards, because they accomplish a remarkable feat: they
are left with empty hands and pockets.
increase security without compromising convenience.
2. Increased convenience: The payment process is Usually, you cannot have one without the other.”

22 | 2021 | FEBRUARY | BANKING FINANCE