Biometric authentication firm Pay By Touch has begun offering its check cashing service to financial institutions, to help them generate additional non-interest fee-based income while decreasing the risk of fraud and meeting regulatory compliance requirements.
The service lets people cash checks using a simple finger scan to authenticate their identity.
Pay By Touch says that its Paycheck Secure system is used by more than three million consumers in 1,700 retail locations across the US, and has been proven to drive an increase in check cashing volume in retail settings, while decreasing write-offs by 75%.
The system is designed to enable financial institutions streamline branch handling of ‘on us’ and ‘non-bank’ checks, reduce the risk of fraud and support regulatory compliance through OFAC screening and SAR and CTR reporting.
Pay By Touch says that the service can also help financial institutions reach the more than 45 million ‘underbanked’ consumers who are presently underserved by financial institutions. According to the Center for Financial Services Information (CFSI), this group represents 40 million households and spends $10.9 billion per year on 324 million alternative financial transactions. A 2006 study by BearingPoint and Visa revealed that the underbanked generate $1.1 trillion in income.
Through biometrics, we can help banks to more securely address large and growing opportunities. For instance, the historically underbanked Hispanic community will drive 50% of the growth in retail banking in the decade to come, said John Rogers, founder, chairman, and CEO of Pay By Touch.