Earlier this week, UK direct payday lender payday pixie announced that they were introducing facial recognition technology to their online loan platform in order to help further secure individuals personal information.
The reason for the new changes to their loan application process is to prevent individuals taking out a loan in someone else’s name, or even taking out a loan using a fake name in order to access additional finances. There has been a steep rise in the UK personal loan sector of individuals taking out a loan in their partner or friends name which is classified as a type of fraud.
For an individual to be able to apply for a loan, they must supply information such as the following:
- Date of Birth
- Bank account
The above information is not necessarily private to any individual and can be easily accessed by almost anyone especially if you have transferred money to someone. With the online loan industry coming under much more scrutiny in recent years, because of how easy it is to apply for a loan not only under your own name, but under another individuals name; it was only a matter of time before data security was stepped up.
Facial Technology on mobiles
Many different types of mobile phones already have facial recognition enabled. The idea of tapping into this already existing technology is what appeals to many different online lenders due to the security of the technology. So far, there have been no major data breaches and identity issues with regards to apple’s facial recognition technology.
The new facial recognition will ensure that an individuals personal details are stored against full facial recognition data to ensure that the individual applying for a loan is who they say they are. What this will ensure is that anyone who is applying for a loan will only be able to apply online under their own name. If anyone tries to apply under a number of alias’ the facial recognition will pick up on this and completely block the loan application and as a result prevent any potential damage to the unsuspecting victims credit rating.
We have already seen facial recognition come into many different industries such as gambling and healthcare. By ensuring that facial recognition is implemented on more online loan platforms, more and more people will have their own personal data secure.
The online bank monzo, who heavily rely on facial recognition have already reported huge improvements to the number of fraud cases that are reported on a daily basis. As it makes identity theft and card cloning almost impossible as the card is activated by the rightful owners face especially when a mobile payment is made.
Only time will tell how successful facial recognition will prove to be to the UK loan industry, however if it is anything as successful as the gambling and healthcare industry, it could potentially revolutionise the loan process online.
Will this only be available on mobile loan applications?
At the moment, the plan is to roll the technology across the mobile loan application platform. There has been no mention of when this could also be live on tablets, laptops and desktops etc. The reason for this is due to the face that the majority of web searches now take place on a mobile device. There is also the added benefit of nearly all modern mobile phones having a front facing camera, which makes the facial recognition technology work.