7 out of 10 banks adopt facial biometrics in Brazil

Seven out of 10 Brazilian banks (75%) use facial biometrics to identify their customers. The data is in the 1st phase of the “Febraban Banking Technology Survey 2024”, carried out by Deloitte Consultoria. Here is the full report (PDF – 10 MB).

In total, 24 banks responded to the questionnaires prepared and applied from November 2023 to March 2024. The institutions that participated in the sampling correspond to 81% of those operating in the country. Additionally, 27 executives from the segment gave interviews to the Deloitte team.

After completing the survey, the organization highlighted facial recognition as one of the technologies most adopted by financial institutions in the country. O chatbotwhich simulates a chat with account holders, generally with the aim of clarifying doubts and guiding them, exists in almost the same proportion as biometrics: 71%.

Then appear in the list:

• RPA (67%) – technology that automates repetitive processes, facilitating those that are carried out massively;
• Generative AI (artificial intelligence) (54%) – capable of creating content and codes from an existing repertoire and which is a resource widely used to improve customer service relationships;
• cognitive intelligence (25%) – imitates human behavior and reasoning to solve questions.

Representatives of financial institutions stated that they intend to prioritize customer experience measures (83%), technological innovations (71%), personalization of products and services (63%), cutting-edge security and privacy (58%), social responsibility and sustainability (54%), in addition to integrated ecosystem offers (54%). Unanimously, banks understand that cybersecurity is an aspect that deserves attention.

In 2023, Idec (Institute for Consumer Protection) issued at least 3 warnings regarding the use of facial recognition in different situations: on public transport, through health plans and in condominiums.

The institute questions the limit, often exceeded by companies, in relation to the LGPD (General Personal Data Protection Law) and legislation that concerns consumer rights. Example: in the case of public transport, Idec discovered that the company that provided the service used passengers’ biometric data to advertise.

How to circumvent facial biometrics

In an interview with Brazil Agency, the lawyer for Idec’s Telecommunications and Digital Rights Program, Lucas Marcon, stated that, under the terms of the LGPD, banks need to allow the customer to choose which security measure they prefer. This therefore includes offering less invasive paths than biometrics.

According to Marcon, a “The biggest concern that exists with biometrics, although it is a security mechanism, is with the security of storing this data”.

“Could this then lead to a data leak? Can they be shared with other companies? The risk of leakage, especially, is something that causes a lot of concern, because, if a person’s biometric data is leaked, everywhere they have a biometric record will be vulnerable.”, declared the expert.

For the lawyer, the ideal is for clients to request, in writing, an option other than facial biometrics. “The person cannot be forced to provide data that is not essential for the provision of that service. As much as banks understand that it is a security mechanism, there are vulnerabilities and the person should be able to choose“, he said.

Marcon stated that, in practice, not all banks have followed what the law determines. “Some banks allow you to use different means and others are irreducible. In this situation, what we have advised consumers – as a 2nd step, but which, unfortunately, sometimes does not resolve – thinking along this more collective line, is to register a complaint for the [ANPD] National Data Protection Authority”.

The expert said that, “although the ANPD has limitations in resolving demands from an individual point of view, it is included in its regulatory agenda which should, at the end of this year [2024] or early next year [2025], loosen regulations on the use of biometrics. So, it is interesting that as many customers make complaints, so that the agency has a large database and can see that this is a problem that society is facing, that the use of biometrics is indiscriminate.”.

With information from Agência Brasil.