Presentation given at the lunch-time workshop for IT experts and developers as part of the dissemination activities of the project PIDaaS (Private Identity as a Service)

1. Market for mobile biometrics
Linas Eriksonas
@Leriksonas
Northtown Technology Park
Vilnius, 07/10/2015

2. 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

3. Are we stuck in the technology take-
up of biometric authentication? Why?
2014 2013
2012 2010

4. Is there a market? Top-down
estimation
UAB E-Bros
Total addressablemarket(TAM) – Electronic access
authentication (EAC):
• authenticationsystems (biometric and card based
authenticationsystems)
• intruder alarm systems
• perimeter security system (free standing,buried
cable and fence mountedsecurity system).
Served addresable market (SAM) – EAC systems for
multifactor authentication (MFA)
Serviceable obtainable market (SOM) – EAC systems
for MFA for mobile applications:
• Access authentication
• Payment authentication

5. Is there a market? Bottom-down
estimation
UAB E-Bros
Globalmobile biometric market revenues will
reach $34.6 billion annually dueto 4.8 billion
biometricallyenabledsmart mobile devices
generating:
• $6.2 billionin biometric sensor revenue
• 5.4 billionbiometric app downloads
generating
• $21.7 billionin annualrevenues from direct
purchase and software developmentfees, and
• 807 billionbiometricallysecured payment and
non-paymenttransactions generating
• $6.7 billionin authenticationfees.
Source: http://www.acuity-mi.com/GBMR_Report.php#sthash.sHLvUPuJ.dpuf

6. Is there a market? Bottom-down
estimation
UAB E-Bros
Globalmobile biometric market revenues will
reach $34.6 billion annually dueto 4.8 billion
biometricallyenabledsmart mobile devices
generating:
• $6.2 billionin biometric sensor revenue
• 5.4 billionbiometric app downloads
generating
• $21.7 billionin annualrevenues from direct
purchase and software developmentfees, and
• 807 billionbiometricallysecured payment and
non-paymenttransactions generating
• $6.7 billionin authenticationfees.
Source: http://www.acuity-mi.com/GBMR_Report.php#sthash.sHLvUPuJ.dpuf

7. Where the market might come from?
Source: http://www.zdnet.com/article/cybersecurity-in-2015-what-to-expect/

8. Three industries driving market
needs for biometrics authentication
Biometrics authentication is driven by the need to prevent
online 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 enforcementagencies around
the world: from border control to database management to
critical infrastructure protection.

9. Touch-based authentication solutions

10. Fingerprint, bodyprint authentication

11. 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).

12. 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
algorithmsshows (and this applies to iris only):
• FRR is only marginallyimpacted, 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 unpredictableissue with the FRR is the
image acquisitionquality.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 this
technology susceptible to false rejections

13. 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

14. Need for concurrent authentifications
in future P2P lending marketplaces
http://www.businessinsider.com/the-future-of-digital-lending-2015-slide-deck-2015-9

15. Voiceprint-based use case: voice
biometric banking
https://www.youtube.com/watch?v=WppXw73BEQM

16. Voiceprint-based use case: voice
biometric banking implementation
https://www.youtube.com/watch?v=sHE6stYhfNQ

17. 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.

18. Redefining the market

19. Market segmentation for piloting

20. 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 PIDaaS
solution 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.

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

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

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

24. 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

25. So, can we sell it and to whom?