Seven out of ten Brazilian banks adopt face biometrics

Seven out of ten Brazilian banks (75%) currently use face biometrics to identify clients. The data come from the first phase of a 2024 survey on banking technology by Deloitte Consultoria for the Brazilian Federation of Banks (Febraban).

A total of 24 banks answered the questionnaires, which were prepared and applied between November 2023 and March this year. The institutions add up to 81 percent of banks operating in Brazil. In addition, 27 executives from the sector gave interviews to the Deloitte team.

After completing the survey, the organization highlighted face recognition as one of the technologies most widely adopted by financial institutions in Brazil. A chatbot simulating a conversation with account holders—usually to answer questions and offer assistance—can be found in almost the same proportion as biometrics, 71 percent.

Next on the list are robotic process automation (67%), which makes it easier to carry out repetitive tasks on a massive scale; generative AI (54%), widely used to improve customer service relations; and cognitive intelligence (25%), which imitates human behavior and reasoning to solve questions.

Representatives of financial institutions stated they intend to prioritize customer experience measures (83%), technological innovations (71%), personalized products and services (63%), cutting-edge security and privacy (58%), social responsibility and sustainability (54%), and integrated ecosystem offerings (54%). Banks unanimously believe that cybersecurity is an aspect that deserves attention.

In 2023, the Consumer Protection Institute (Idec) issued at least three warnings about the use of face recognition in public transport, health insurance procedures, and housing condominiums. The agency questions the limit, often exceeded by companies, established by the General Law on the Protection of Personal Data, as well as concerning consumer rights legislation. Regarding public transport, the institute discovered that company providing the service used passengers’ biometric data to make advertisements, for instance.

Getting around face biometrics

In an interview with Agência Brasil, Lucas Marcon, a lawyer from the institute’s telecom and digital rights program, noted that, under the General Law on the Protection of Personal Data, banks must allow clients to choose which security measure they prefer—thus including less invasive ways than biometrics.

“Because another major concern with biometrics, even though it is a security tool, is the security of storing data. Could it result in a data leak? Could these data be shared with other companies? The risk of a leak causes a lot of concern, because if someone’s biometric data are leaked, they’re vulnerable wherever they have a biometric record,” he pointed out.

In his view, the ideal is having clients request an option other than face biometrics in writing. “People can’t be forced to provide data that are not essential for the provision of that service. As much as banks understand it is a security mechanism, there are vulnerabilities and people should be allowed to choose.”