BIOMETRICS IN BANKING

A COURSE PROJECT REPORT

By

Venkat Kishore (RA2111030010090)

Kartik Jindal (RA2111030010124)
Anish Bharat (RA2111030010092)
Ajay Kumar (RA2111030010084)
Sudikshan (RA2111030010116)
Swadhik (RA2111030010120)

Under the guidance of

Dr.Sibi Amaran

In partial fulfilment for the Course

BACHELOR OF TECHNOLOGY
In
COMPUTER SCIENCE & ENGINEERING
With specialization in Computing Technologies

SCHOOL OF COMPUTING
COLLEGE OF ENGINEERING AND
TECHNOLOGY SRM INSTITUTE OF
SCIENCE AND TECHNOLOGY
KATTANKULATHUR - 603203
MAY 2023

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 BONAFIDE CERTIFICATE

Certified that this project report “BIOMETRICS IN BANKING” is the bonafide

work of “Venkat Kishore (RA2111030010090),Kartik Jindal (RA2111030010124),Anish
Bharat (RA2111030010092),Ajay Kumar (RA2111030010084),Sudikshan
(RA2111030010116),Swadhik(RA2111030010120)” of III Year/V Sem B.tech(CSE-
cybersecurity) who carried out the mini project work under my supervision for the course
Biometrics in SRM Institute of Science and Technology during the academic year 2023
(SEM-5).

SIGNATURE

Dr. Sibi Amaran

Associate Professor,
Department of Computing Technologies
SRM Institute of ScienceandTechnology

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 ABSTRACT

Biometric authentication has become an important tool for enhancing security in

the banking industry. Biometrics use unique physical or behavioral
characteristics of individuals such as fingerprints, iris, face, voice, and signature
recognition to verify their identity. This technology provides a secure and reliable
method of verifying a customer's identity, making it difficult for unauthorized
individuals to access sensitive information or conduct fraudulent transactions.

In addition to improving security, biometrics can also make banking more

efficient and convenient. Biometric authentication can be used to speed up the
process of opening new accounts or applying for loans, eliminating the need for
customers to provide physical identification documents. It can also be used to
enable mobile banking transactions, eliminating the need for cumbersome
passwords and making banking easier and more accessible for customers.
However, there are still challenges to implementing biometrics in banking,
including privacy and security concerns, standardization, interoperability, and
regulation. Biometric data is highly sensitive and can be vulnerable to
cyberattacks, making it essential to ensure that these technologies are secure and
compliant with legal and ethical standards.

Despite these challenges, the adoption of biometrics in banking is expected to

continue to grow in the coming years as financial institutions seek to enhance
security and improve the customer experience. Biometric technologies will likely
become an increasingly important part of the banking landscape, enabling more
secure, efficient, and convenient banking services for customers.

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 INDEX

SNO CONTENTS

PAGE

i ABSTRACT i

1 INTRODUCTION 5

2 LITERATURE SURVEY 6

3 SCOPE OF THE PROJECT 8

4 PROBLEM STATEMENT 9

5 OBJECTIVE 10

6 ARCTITECTURE AND MODULE 11

7 MODULES EXPLANATION 17

8 RESULT AND DISCUSSION 19

9 CONCLUSION 22

10 REFERENCE 23

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 INTRODUCTION

The advent of biometric authentication has revolutionized the way banks secure
their customers' accounts. Traditional security measures, such as passwords and
PINs, are vulnerable to attacks, which have led to an increase in fraudulent
activities. Biometric authentication, which uses unique physical or behavioral
characteristics of individuals to verify their identity, has emerged as a powerful
tool to enhance security in the banking industry.

Biometrics in banking is not only about improving security but also about making
banking more convenient and efficient for customers. Biometric authentication
can speed up the process of opening new accounts, applying for loans, and
conducting mobile banking transactions. It eliminates the need for physical
identification documents, reducing the time and effort needed by customers.

Despite the advantages, biometric authentication faces several challenges, such

as privacy and security concerns, standardization, interoperability, and
regulation. Banks need to ensure that the biometric data they collect from their
customers is secure and compliant with legal and ethical standards.
As biometric technologies continue to evolve and improve, they will play an
increasingly important role in the banking industry. Banks that adopt biometric
authentication will have a competitive advantage by providing their customers
with a more secure and convenient banking experience.

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 LITERATURE SURVEY

• "Biometrics authentication in banking: A review of existing approaches and

future directions" by Ayodeji Oluwatope and Oyediran Akanmu. This
paper provides a comprehensive overview of biometric authentication in
the banking sector, including an analysis of the most commonly used
biometric modalities, such as fingerprints, facial recognition, and voice
recognition. It also discusses the challenges associated with the
implementation of biometrics in banking, such as privacy and security
concerns.

• "The Impact of Biometric Technology on Banking Security" by Raymond

L. Foster. This paper explores the impact of biometric technology on
banking security, discussing the benefits and challenges of biometrics in
the financial sector. The author analyzes the various types of biometric
technologies used in banking, including fingerprints, facial recognition, and
iris scanning.

• "Biometric Authentication for Mobile Banking Applications" by Sameh

Kamel and Sherif El-Kassas. This paper discusses the use of biometric
authentication in mobile banking applications. The authors explore the
benefits of biometric authentication, such as improved security and user
experience, as well as the challenges associated with its implementation,
such as interoperability and regulation.
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• "Biometric Authentication and Authorization in Mobile Banking: An
Overview" by Anandakumar Haldorai and Karthikeyan Ramachandran.
This paper provides an overview of biometric authentication and
authorization in mobile banking. The authors discuss the various biometric
modalities used in mobile banking, as well as the benefits and challenges
of biometric authentication in this context.

• "An Analysis of Biometric Technology in the Banking Sector" by S.

Sivasankar and S. R. Devi. This paper analyzes the use of biometric
technology in the banking sector, including an overview of the various
biometric modalities used in banking. The authors also discuss the
challenges associated with the implementation of biometrics in banking,
such as data privacy and security concerns.

• "Biometric Authentication for Secure Mobile Banking Transactions" by

Muhammad Rehan and Hafiz Farooq Ahmad. This paper discusses the use
of biometric authentication for secure mobile banking transactions. The
authors explore the benefits of biometric authentication in this context, such
as improved security and user experience, as well as the challenges
associated with its implementation, such as the need for standardized
biometric modalities.

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 SCOPE OF THE PROJECT

• Biometric authentication: Implementing biometric authentication for

customer-facing applications such as ATM and online banking, mobile
banking, and branch banking to enhance the security of banking operations
and improve the customer experience.

• Employee authentication: Developing biometric-based employee

authentication and access control systems to secure sensitive data and
systems used by banking employees and minimize the risk of insider
threats.

• New biometric modalities: Testing and integrating new biometric

modalities, such as vein recognition and gait analysis, to expand the scope
of biometrics in banking and improve the accuracy and reliability of
biometric technologies.

• Data privacy and security: Establishing standards and regulations for the
collection and storage of biometric data to ensure its privacy and security,
protect against data breaches, and comply with relevant regulations.

• Fraud detection and prevention: Developing and implementing

biometric-based fraud detection and prevention systems to minimize the
risks of fraudulent activities in the banking industry.

• Customer profiling: Researching and developing new applications of

biometrics in banking, such as customer profiling, to improve the customer
experience and personalize banking services.

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 PROBLEM STATEMENT

The problem statement of biometrics in banking is the increasing need for secure
and reliable authentication methods in the banking sector. Traditional
authentication methods such as passwords and PINs have proven to be
ineffective, as they are vulnerable to hacking, phishing attacks, and other security
breaches. These security breaches can result in significant financial losses,
reputational damage, and legal liabilities for banks. Biometric authentication,
which uses unique biological characteristics such as fingerprints, facial features,
and voice patterns to authenticate users, has emerged as a potential solution to
these challenges. However, there are still several challenges to be addressed
before biometric authentication can be fully adopted in the banking sector.

One major challenge is the reliability and accuracy of biometric systems.

Biometric authentication relies on the accuracy of the biometric sensors and
algorithms used to identify individuals, and the systems must be able to
accurately distinguish between genuine users and imposters. Another challenge
is the standardization and interoperability of biometric systems across different
devices and platforms, to ensure seamless integration and usability for customers.
Additionally, concerns about privacy and data protection must be addressed, as
biometric data is sensitive and requires proper security measures to prevent
unauthorized access and misuse. Finally, regulatory compliance is another
challenge, as banks must adhere to various regulations and guidelines regarding
the collection, storage, and use of biometric data. Addressing these challenges
will be crucial to fully realize the potential of biometrics in banking and provide
secure and convenient banking services to customers.

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 OBJECTIVE

The objective of biometrics in banking is to provide secure and convenient

banking services to customers by leveraging biometric technologies to
authenticate users and enhance security. Biometric authentication offers several
advantages over traditional authentication methods, such as passwords and PINs,
including increased security, reduced fraud, and enhanced customer experience.
• To implement biometric authentication for customer-facing
applications such as ATM and online banking, mobile banking, and
branch banking. This will provide customers with a seamless and secure
banking experience, as they can be authenticated quickly and easily
using their unique biological characteristics such as fingerprints, facial
features, and voice patterns.
• To develop biometric-based employee authentication and access
control systems to secure sensitive data and systems used by banking
employees and minimize the risk of insider threats. This will ensure that
only authorized personnel have access to critical banking systems and
information.
• To explore new biometric modalities and test their feasibility for use in
banking, such as vein recognition and gait analysis, to expand the scope
of biometrics in banking and improve the accuracy and reliability of
biometric technologies.
• To establish standards and regulations for the collection and storage of
biometric data to ensure its privacy and security, protect against data
breaches, and comply with relevant regulations.
• To develop and implement biometric-based fraud detection and
prevention systems to minimize the risks of fraudulent activities in the
banking industry.

Overall, the objective of biometrics in banking is to enhance the security and

convenience of banking services by leveraging biometric technologies to
authenticate users, prevent fraud, and personalize customer experiences.

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 ARCHITECTURE AND
MODULES

Architecture:

The architecture of biometrics in banking typically includes several layers and

components that work together to provide secure and reliable biometric
authentication. The following are the key components of biometric architecture
in banking:

• Biometric sensors: These are physical devices that capture biometric data
such as fingerprints, facial features, and voice patterns. Biometric sensors
can be integrated into various banking devices such as ATMs, smartphones,
and tablets.

• Biometric middleware: This layer serves as an interface between the

biometric sensors and the back-end systems that authenticate users. The
middleware provides the necessary algorithms to process and verify
biometric data and communicates with the back-end systems to validate
user identity.

• Authentication servers: These are back-end systems that verify user identity
based on biometric data. The authentication server compares the biometric
data captured by the sensors against a database of enrolled biometric
templates to authenticate the user.

• Enrollment and management systems: These systems are responsible for

enrolling and managing biometric templates of users. The enrollment
process involves capturing the biometric data of a user and creating a
template that can be used for future authentication.

• Security systems: Biometric architecture in banking requires robust

security measures to protect the biometric data and prevent unauthorized
access. Security measures include encryption of data, secure storage of
templates, and access control.
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 • Compliance systems: Biometric architecture in banking must comply with
various regulations such as GDPR, PSD2, and other regional data privacy
and protection laws. Compliance systems ensure that biometric data is
collected, stored, and used in compliance with relevant regulations.

• User interface: The user interface layer provides a graphical user interface
for customers to interact with the biometric authentication systems. The
user interface guides users through the authentication process and provides
feedback on the authentication status.

Overall, the architecture of biometrics in banking is designed to provide secure,

reliable, and convenient biometric authentication to customers while ensuring
compliance with relevant regulations and protecting the privacy of users'
biometric data.

Module Breakdown:

The different modules of biometrics in banking can be broadly classified into

the following categories:

• Biometric enrollment module: This module is used to capture and store

biometric data of the bank's customers. The module consists of biometric
sensors, such as fingerprint scanners, facial recognition cameras, and voice
recognition microphones, that are used to capture the biometric data. The
biometric data is then stored securely in a database for future
authentication.

• Biometric authentication module: This module is used to authenticate

customers using their biometric data. The authentication module compares
the biometric data captured during enrollment with the data captured during
authentication to verify the customer's identity. This module also includes
algorithms that are used to process and analyze the biometric data and
provide authentication results.

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 • Fraud detection and prevention module: This module is used to detect and
prevent fraudulent activities by analyzing the biometric data of customers.
The module uses machine learning algorithms to identify patterns and
anomalies in biometric data that may indicate fraudulent activities.

• Access control module: This module is used to control access to bank's

sensitive areas and systems, such as data centers and financial systems. The
access control module uses biometric data to authenticate employees and
ensure that only authorized personnel have access to the sensitive systems.

• Compliance module: This module is used to ensure compliance with

relevant regulations and standards, such as GDPR and ISO 27001. The
compliance module provides tools and features to manage and protect
biometric data and ensure that it is collected, stored, and used in compliance
with relevant regulations.

• Reporting and analytics module: This module is used to generate reports

and analyze the data collected from biometric systems. The module
provides insights into customer behavior and trends, as well as the
performance of the biometric systems.

Overall, the different modules of biometrics in banking work together to

provide secure and convenient banking services to customers, while ensuring
compliance with regulations and protecting the privacy of customers' biometric
data.

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 UML DIAGRAM

COMPONENT DIAGRAM

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ARCHITECTURE DIAGRAM

15
BLOCK DIAGRAM

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 MODULES EXPLANATION

1. Biometric capture module: This module involves the use of biometric

sensors to capture biometric data from the customer. The biometric sensors
can include fingerprint scanners, iris scanners, facial recognition cameras,
or voice recognition systems. The captured biometric data is then converted
into a digital format for processing.

2. Biometric template generation module: Once the biometric data is

captured, the biometric template generation module converts the data into
a unique digital template that can be used for future authentication
purposes. This process typically involves the use of algorithms that extract
unique features from the biometric data to create a digital template that is
unique to the individual. The template is then encrypted and stored securely
in a database.

3. Biometric verification module: When a customer attempts to access a

banking service, the biometric verification module compares the biometric
data captured during the current transaction with the stored biometric
template to verify the customer's identity. This module typically uses
matching algorithms to compare the features extracted from the biometric
data during the current transaction with the features stored in the template.
If the two sets of features match to a certain degree of accuracy, the
customer is authenticated and granted access to the banking service.

4. Enrollment and management module: This module involves the process

of enrolling customers into the biometric system, managing their biometric
templates, and updating the templates as needed. The enrollment process
typically involves the capture of biometric data and the creation of a
biometric template for the customer. The management module is
responsible for securely storing the biometric templates and ensuring that
they are up-to-date and accurate.

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 5. Security module: The security module is responsible for protecting the
biometric data and preventing unauthorized access. This module typically
includes measures such as encryption, access control, and data backup and
recovery procedures to ensure the security and integrity of the biometric
data.

6. User interface module: The user interface module is responsible for

designing and developing user-friendly interfaces that enable customers to
interact with the biometric system. This module ensures that customers can
easily enroll in the biometric system and use biometric authentication to
access banking services.

7. Integration module: The integration module is responsible for integrating

the biometric system with other banking systems and processes, such as
account management and transaction processing. This module ensures that
the biometric system works seamlessly with the overall banking system and
provides a consistent user experience across all banking services.

Overall, these modules work together to enable secure and convenient access to
banking services using biometric authentication.

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 RESULT AND DISCUSSION

The implementation of biometrics in banking has been widely accepted as an

innovative and secure solution for customer authentication in banking
transactions. The use of biometric authentication provides several advantages,
such as convenience, security, and accuracy, as compared to traditional
authentication methods such as passwords and PINs. In this section, we will
discuss the results and implications of implementing biometrics in banking.

One of the significant benefits of implementing biometrics in banking is

enhanced security. Biometric data is unique to each individual, making it
extremely difficult for hackers or fraudsters to breach the system using stolen
passwords or PINs. Biometric authentication also reduces the risk of identity
theft, which is a significant concern in the banking industry.

Moreover, the implementation of biometrics in banking has resulted in increased

convenience for customers. Biometric authentication is quick and easy, requiring
no memorization of complex passwords or PINs. Customers can access their
accounts and perform transactions with ease, reducing the time spent waiting in
queues or navigating complex authentication procedures.

The accuracy of biometric authentication is also a significant advantage.

Biometric data is difficult to forge or manipulate, reducing the risk of false
positives or false negatives in the authentication process. This improves the
accuracy and reliability of banking transactions, which is a critical requirement
in the banking industry.

However, there are also some challenges associated with implementing

biometrics in banking. One significant challenge is the need for adequate
infrastructure to support biometric authentication. This includes the availability
of compatible biometric devices, such as fingerprint scanners or facial
recognition cameras, and the necessary software and hardware to store and
manage biometric data.

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Another challenge is the need for proper regulation and compliance with data
protection laws and regulations. Biometric data is sensitive, and there is a risk of
misuse or abuse if not managed properly. Therefore, it is essential to have robust
data protection policies and practices in place to safeguard the privacy and
security of biometric data.

In conclusion, the implementation of biometrics in banking has resulted in

enhanced security, convenience, and accuracy in banking transactions. While
there are some challenges associated with implementing biometrics in banking,
the benefits outweigh the risks, making biometric authentication a viable solution
for secure and efficient banking transactions.

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21
 CONCLUSION

In conclusion, biometrics in banking represents a significant advancement in the

realm of security and convenience for banking operations. Biometric
authentication offers a highly secure and reliable method for verifying the
identity of customers, reducing the risk of fraudulent activity, and enhancing the
overall customer experience.

One of the key advantages of biometrics in banking is its ability to eliminate the
need for customers to remember multiple passwords or carry physical
authentication devices. This can significantly reduce the incidence of forgotten
passwords, lost or stolen devices, and other common issues that can negatively
impact the customer experience.

However, the integration of biometric authentication in banking requires careful

planning, development, and integration with existing systems. Biometric systems
must be designed to be secure, reliable, and user-friendly to ensure widespread
adoption and acceptance among customers.

Despite these challenges, the potential benefits of biometrics in banking are

significant. With continued innovation and development, biometric systems have
the potential to offer a seamless and secure banking experience that is both
convenient and efficient for customers.

In addition, the use of biometrics in banking can reduce the risk of fraud and
identity theft, which is becoming an increasingly pressing concern in the
financial industry. By using unique biometric characteristics to verify the identity
of customers, biometric authentication offers a strong layer of security that is
difficult to replicate or spoof.

Overall, the future of biometrics in banking is promising, and it is expected to

play an increasingly important role in the future of banking and financial
services. The continued development and adoption of biometric systems can
provide a safer, more efficient, and more convenient banking experience for
customers.
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 REFERENCE

1. Jain, A. K., Ross, A., & Nandakumar, K. (2016). Introduction to

biometrics. Springer.

2. Wu, Y., Wang, Y., & Wang, C. (2020). Biometrics authentication for
mobile banking applications: a review of current practices and
challenges. IEEE Access, 8, 26716-26733.

3. Malasi, N. (2017). Biometric authentication in banking: A case study.

International Journal of Computer Science and Information Security,
15(7), 14-20.

4. Al-Obeidat, F., Tashtoush, Y., & Abdallah, A. E. (2019). Biometric

authentication in e-banking systems: A review. Journal of Network
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5. Li, M., Li, J., & Li, Y. (2020). Biometric authentication for mobile
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6. Rattani, A., & Sharma, P. (2020). Biometric authentication in banking

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7. Lopes, R. C. P., & Britto Jr, A. S. (2019). A comparative analysis of

biometric authentication systems in mobile banking applications.
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8. Gupta, A., Dhanapal, P., & Ramakrishnan, G. (2019). Biometric

authentication in banking: A systematic literature review. Journal of
Information Security and Applications, 50, 102335.

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9. Akbar, A. H., & Aslam, M. (2021). Evaluating biometric
authentication in banking: a systematic review of research.
International Journal of Advanced Computer Science and
Applications, 12(2), 29-36.

10. Dasgupta, D., & Chakraborty, S. (2021). A survey on biometric

authentication in banking systems. In 2021 International Conference
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(CTEMS) (pp. 489-493). IEEE.

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