Voice Payment Technology in Banking: Worth the Hype

Voice Payment Technology in Banking: Worth the Hype

May 30, 2019
by Svitlana Luts

I remember the days when voice assistants were thought of as a joke. Who could have thought that those mini voice robots are going to work well one day? Whether you were as skeptical as me or embraced this technology from the day it appeared, we must admit: you and I are using it today.

Google Assistant, Alexa and Siri are now parts of smartphones, watches, vacuum cleaners, speakers and light bulbs. Voice technology doesn’t stand still, of course, otherwise, we wouldn’t prefer asking Siri to book a hotel or schedule an appointment over typing required text into Google search.

As more and more consumers are using smartphones for money transactions and other banking services, voice technology has become a new option that is going to outshine traditional payment.

Article gist:

  • The adoption of voice payment;

  • Voice payments potential;

  • inVeritaSoft experience with a high-level security system for FinTech solution;

  • IoT and voice payments;

  • Context interpretation and personalized voice recognition.

Voice payments adoption in the USA

About 3.25 billion voice assistants are in use today. People like voice assistants cause they are easy and quick. 18 million US users have investigated the way voice payment works, and a lot of financial institutions, as well as FinTech leaders, have used the voice payment method. Innovative technology enables consumers to use their voice for balance checkup, transfers, credit, and bills payments. In today's fast-paced world people prefer services that save their time and are easy to use.

The main reason voice technology is going to swap usual typing is personalization. Voice is an amazing instrument allowing analysts to gather valuable data and insights about consumer behavior and wants. PayPal, Ameritrade, Fidelity Investments, Liberty Mutual as well as some of the world-known FinTech players have already taken advantage of voice technologies.

What does prevent other banks from adopting this technology? First and foremost it’s security. It is still one of the major concerns, especially in online banking where customers struggle to trust the systems operated by voice. Well, if we are honest with ourselves we would agree that the more technology becomes innovative the more we get scared about data safety. Voice payments will become mainstream right after we develop robust security systems and protection methods.

USVoicePayment Adoption

Source: Business Insider – The Voice Payments Report 2017

Overcoming the barriers of security issues

By leveraging unique biological patterns, biometrics is the most secure method of personal identification. Moreover, as reported by Research and Markets, consumers have fewer security concerns using voice payment if there’s biometric authentication like face recognition or fingerprint identification.

One of the major financial institutions, Lloyds Banking Group plc, uses authentification to make a transaction with facial recognition and fingerprint. Biometric data is saved and encrypted from any misuse.

To make transactions even more secure and quick Australia and New Zealand Banking Group have shared that they are going to use voice biometrics for client identification and verification. The same approach has been adopted by Citi Bank customers from Thailand, Australia, Singapore, Hong Kong, Malaysia, India, Philippines, Taiwan, and Vietnam.

biometrics-blockchain1-768x432

Image source: Blockchain Based Biometrics to be Used in Travel Security

Voice authentication takes a lot of burdens away. No PINs, no passwords, no security questions to validate customer identity. It brings smooth and easy access to data and transactions without the need to type information manually.

inVeritaSoft experience with an alternative high-level security system for FinTech

Among versatile projects and companies inVeritaSoft worked with, we had a chance to create a dedicated FinTech solution demanding high-level security system. The project was certified by a third-party company that evaluates the systems’ security level. The foundation of this system is OWASP principles.

The main things that have been covered include:

  • Custom encryption of the key that leverages encryption in the system;

  • Two-factor authentication using AWS services;

  • Only one work session is allowed for each user during the same period of time;

  • Attacks coverage via code integration into a database;

With solid experience in financial and banking solutions, inVeritaSoft is a reliable partner for your next business venture.

IoT and voice payments

Cloud-computing software controlled by the voice is going to be built into practically every brand-new device, transportation and houses, as described by Amazon’s last presentation of a bunch of the state-of-the-art Alexa-powered products.

Financial services are getting a lot of benefits of innovations mobile tech and IoT are bringing to the table. Conversational payment is the key to a new season of banking competitiveness. Already, Siri can help users make peer-to-peer transfers with Venmo, Alexa can pay off Capital One credit card bills, and Google Assistant can let users shop with their voice from nearby stores.

IoT technology allows you to pay with your phone, a wearable, or a voice virtual assistant. It doesn’t require human-to-human or human-to-computer interaction except for the voice command. This cutting-edge technology is a new way to conduct payments by replacing old-fashioned means.

Context interpretation and personalized voice recognition

Voice payments have a bright future due to neuro-linguistic programming (NLP) advancements. Voice recognition methods, talks with virtual assistants will resemble real conversations. Understanding the meaning behind words, differentiating between accents “techniques” are on their way. Soon you won’t be able to spot a difference between a human and a machine.

Google Assistant is now a game changer among other tools alike thanks to the ability to understand the context and meaning. A profound understanding of the questions and requests minimizes the risk of voice payments and develops faster in terms of personalization.

Conclusion

Soon there will be no place for traditional payments. Mobile banking is substituting usual one and voice payments are going to come instead of “typing on the go” method.

If you feel like it has been spoken right to you, it’s high time you updated your banking software, we advise you to make a wise pivot and contact inVeritaSoft for a cutting-edge banking solution. Don't lag behind your competitors, make the leap forward.


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