Biometrics to Fule FinTech Growth in EU in The Next Decade

Global investment in FinTech ventures in the first quarter 2016 reached $5.3 billion, a 67% increase over the same period last year, and the percentage of investments going to FinTech companies in Europe and Asia-Pacific nearly doubled to 62%, stated in a report by Accenture. In Europe, overall FinTech investment more than doubled (120%) between 2014 and 2015 and the number of deals increased by half (51%).

Fintech Europe | Iris Biometric

The EU is a uniquely well suited location for FinTech. According to EY Research, EU’s growing strengths in Fintech are due to the presence of a large and technologically sophisticated customer base; good availability of business capital; a supportive regulatory approach and excellent financial services infrastructure. In addition, EU has many countries such as UK hold the world’s leading global financial services center and the most internationally focused market place in the world. According to Media Planet, they are known as the good destination for FDI projects and recognized as one of the easiest environments to do business in the world.

Moreover, the government is committed to cementing the EU’s world leading position in FinTech and has already taken significant steps towards achieving this goal. They provide some strategic decisions, which is not only a destination in its own right but a springboard to internationalizing and penetrating new markets. In details, the government ensures that the countries in EU have the appropriate regulatory framework, the right tax system and the best infrastructure to support this ambition. It also offers hands-on, practical assistance in helping companies trade abroad and invest in the countries.

Besides the support from government, Europeans consumers also contribute to the growth of Fintech. Based on the psychographic, in details, they are open to new, innovative models for delivering financial services both within and outside the traditional banking system. They also spend much more on e-commerce than people in the USA, according to Media Planet.

Regards of Fintech segments, Consult Hyperion predicted that in the next 5 year, there will be significant growth in non-cash payments. In details, payments will become faster and cheaper, and will be greater transparency for customers around the detail of their transactions – such as information about any charges. These developments will be underpinned by significant improvements in customer identification, in particular through the use of multiple biometrics (using a combination of biometrics such as iris scanning, fingerprinting or voice recognition).

According to the recently survey of Visa Europe, over two-thirds (68%) EU consumers want to use biometrics as a method of payment authentication. In which, 51% of Europeans believe biometric authentication for payments will provide  a faster and easier payment experience than traditional methods while 33% like the fact that biometric authentication will protect their information better than passwords or PIN if their device was lost or stolen. Realizing the huge demands of biometrics from citizens, in the future, EU government will consider to deploy biometrics as a method of payment authentication when on public transport, at a bar or restaurant, purchase goods and services on the high street e.g. groceries, coffee and at fast food outlets, or when shopping online, according to Biometric Update.