Market for mobile biometrics

Linas Eriksonas

@Leriksonas

Northtown Technology Park

Vilnius, 07/10/2015

Overview

Is there a market for mobile biometrics? Market estimations

Market drivers: health, mobile banking, public governance

Competing technologies: touch-based and non-touch based

Three Use Case scenarios

Open Question: Can we sell it and to whom?

UAB E-Bros

Are we stuck in the technology take-up of biometric authentication? Why?

2014 2013

2012 2010

Is there a market? Top-downestimation

UAB E-Bros

Total addressable market (TAM) – Electronic accessauthentication (EAC): • authentication systems (biometric and card based

authentication systems)• intruder alarm systems • perimeter security system (free standing, buried

cable and fence mounted security system). Served addresable market (SAM) – EAC systems formultifactor authentication (MFA)Serviceable obtainable market (SOM) – EAC systemsfor MFA for mobile applications:• Access authentication• Payment authentication

Is there a market? Bottom-downestimation

UAB E-Bros

Global mobile biometric market revenues will reach $34.6 billion annually due to 4.8 billion biometrically enabled smart mobile devices generating:• $6.2 billion in biometric sensor revenue• 5.4 billion biometric app downloads

generating • $21.7 billion in annual revenues from direct

purchase and software development fees, and • 807 billion biometrically secured payment and

non-payment transactions generating • $6.7 billion in authentication fees.

Source: http://www.acuity-mi.com/GBMR_Report.php#sthash.sHLvUPuJ.dpuf

Is there a market? Bottom-downestimation

UAB E-Bros

Global mobile biometric market revenues will reach $34.6 billion annually due to 4.8 billion biometrically enabled smart mobile devices generating:• $6.2 billion in biometric sensor revenue• 5.4 billion biometric app downloads

generating • $21.7 billion in annual revenues from direct

purchase and software development fees, and • 807 billion biometrically secured payment and

non-payment transactions generating • $6.7 billion in authentication fees.

Source: http://www.acuity-mi.com/GBMR_Report.php#sthash.sHLvUPuJ.dpuf

Where the market might come from?

Source: http://www.zdnet.com/article/cybersecurity-in-2015-what-to-expect/

Three industries driving marketneeds for biometrics authentication

Biometrics authentication is driven by the need to preventonline fraud which is most ripe in:

• Healthcare - margins are already very slim for private healthcare companies, and as a result of illicit activity, they are losing a significant amount of money.

• Mobile banking - fraud has hit the mobile banking industry hard; IDC predicts that banks’ risk tech spending will increase at a CAGR of 6.9% until 2017, including counter fraud and cyber security measures.

• Public sector - strong identity verification is in high demand amongst government and law enforcement agencies around the world: from border control to database management to critical infrastructure protection.

Touch-based authentication solutions

Fingerprint, bodyprint authentication

Challenges for touch-based solutions

False Rejection Rate (FRR) (i.e. what is the chance that two samples of the same individual do not match).

Challenges for image authentication

Key parameters:

• Y-axis False Rejection Rate (FRR) (i.e. what is the chance that two samples of the same individual do not match)

• X-axis: False Acceptance Rate (FAR) (i.e. what is the chance that two samples of different individuals match).

• Hamming distance (HD) is often used to distinguish between iris samples of the same person and iris samples of

a different person

• NB: ROC (Receiver Operating Characteristics) graph is a graph of sensitivity (y‐axis) vs. 1 – specificity (x‐axis)

ROC for two top-performing iris recognition algorithms shows (and this applies to iris only):• FRR is only marginally impacted, no matter

how much the FAR changes• each reduction in HD threshold by 0.01

(one percentile point) causes a 10-fold reduction in FRR.

A more unpredictable issue with the FRR is the image acquisition quality. In case an iris scan is of bad quality, it is almost impossible that this iris will be false accepted (FAR). It is much more likely that that iris will be false rejected (FRR).- Hence, the increase of user base makes thistechnology susceptible to false rejections

Voiceprint-based mobile biometric authentication as a viable alternative

• Voice biometric identity verification is soaring in popularity. According to U.K. analyst CompaniesandMarkets.com, the global voice biometrics market is growing at a CAGR of 16.2%

• Voiceprint-based mobile applications:• IVR (Interactive Voice Response) Authentication• Mobile App Authentication• Web Transaction Verification• IT Helpdesk Identity Verification• Remote Employee Validation• Password Reset

Need for concurrent authentificationsin future P2P lending marketplaces

http://www.businessinsider.com/the-future-of-digital-lending-2015-slide-deck-2015-9

Voiceprint-based use case: voice biometric banking

https://www.youtube.com/watch?v=WppXw73BEQM

Voiceprint-based use case: voice biometric banking implementation

https://www.youtube.com/watch?v=sHE6stYhfNQ

Latest technology development: iRing

• Apple (patented 5 days ago):• In an example of voice

authentication, the patent describes a method by which one user authorizes a money transfer to another ring user simply by shaking hands. In this particular case voice commands are used to authorize the transaction, with a user saying, "By shaking hands with Steve I agree to give him $20." The technique can also be used to pass along messages and other protected digital data.

Redefining the market

Market segmentation for piloting

Planned PiDaaS Pilots

• E-Commerce: This pilot will take place in an environment of e-Commerce (B2B). PIDaaS solution will be integrated on the platform of one of the biggest e-shops in Finland, and will be used by real customers familiar with new technologies.

• E-Health. In this pilot will verify correct operation of the PIDaaSsolution through its integration in the platform of the Catalan health system. This platform enables people to interact online through computer or other mobile devices with the health department, its agencies and providers (hospitals, health centres, etc.).

• E-Citizen. The best bed proposed for the pilot will apply to the service of visualization of the personal data within the human resources procedures. This service allows the employees belonging to an administration or company to access their personals records (such as payroll, holidays, time off work, etc.) and visualize them.

E-commerce

• Integration on one of the biggest e-shops in Finland, and used by real customers familiar with new technologies

E-health

• Integration on one of the biggest e-shops in Finland, and used by real customers familiar with new technologies

E-citizen

• Public Administration of Piedmont, applied to procedures used by administration employees, such as payrolls.

Challenges for the market take-up

The following challenges identified for PiDaaS:

• Interoperability: platform’s interoperability with applications, mobile terminals, computing environments and integration of different services;

• Scale up: Cross-state market recognition; and

• Regulatory requirements: compliance to legislation and regulation requirements in different application fields

So, can we sell it and to whom?