BIOMETRIC AUTHENTICATION IN BANKING: A PATH TOWARD SECURE, INCLUSIVE, AND RELIABLE DIGITAL TRANSACTIONS

Abstract

The increasing digitalization of financial services has significantly transformed banking operations while simultaneously intensifying risks associated with cybersecurity. Conventional methods of authentication, such as passwords, PINs, and one-time passwords, are progressively proving insufficient against sophisticated cyberattacks, identity theft, and fraudulent activities. In this context, biometric authentication leveraging unique identifiers such as fingerprints, facial features, iris patterns, and voice recognition has emerged as a vital innovation for safeguarding customer data and ensuring transaction integrity. This study investigates the effectiveness of biometric authentication in enhancing cybersecurity within the banking industry. A quantitative survey of 104 participants, including customers, banking personnel, and cybersecurity professionals, was undertaken to examine levels of awareness, satisfaction, trust, and perceived risks associated with biometrics. Findings demonstrate that biometric systems enhance security perception, improve customer satisfaction, and mitigate fraud attempts, yet privacy concerns, system inaccuracies, and limited user awareness remain critical challenges. The study recommends stronger encryption measures, improved transparency, multimodal authentication, and alignment with global privacy regulations. Overall, the research underscores that biometric authentication is not merely a technological substitute for traditional methods but a strategic enabler of safer, more inclusive, and trustworthy digital banking.