SMFG and SMBC Sign Agreement with NTT Data and Daon, Inc. Start Full-fledged Consideration of Individual Identification Platform Using Various Types of Biometrics

Reston, VA - Sumitomo Mitsui Financial Group, Inc. (“SMFG”, President: Koichi Miyata) and Sumitomo Mitsui Banking Corporation (“SMBC”, President and CEO: Takeshi Kunibe) signed an agreement with NTT DATA Corporation (“NTT Data”, President and CEO: Toshio Iwamoto) and Daon Inc. (“Daon”, CEO: Tom Grissen) for the commercialization of services offering individual identification platforms that use several different types of biometrics.

Services are scheduled for launch in spring 2017, following the full-fledged consideration of this service and assuming that relevant regulatory approval is received.

Background

At present, the combination of a user ID and password is the primary approach for authentication, identification or verification for various services. However, the switch to biometric authentication is taking place globally to bring both security and convenience to users. Currently, users must set IDs and passwords or register biometric data for each service they sign up to use. Each individual service providers currently develops its own authentication function for its company. This entails system investment and management of system operations.

Summary

In addition to the financial intermediary services provided thus far, SMFG plans to offer a seamless environment for accessing various services by furnishing a user authentication intermediary function using biometric data to link client and service provider account information. This new service will be built using Daon’s IdentityX® Platform.

Each company will leverage its strengths, as outlined below, to develop a seamless environment for accessing various services. The user authentication intermediary function will be provided via a new smartphone application.

  • SMBC: Track record in the building and management of banking systems that focus on providing reliability and safety. Knowhow regarding user authentication which focuses on ensuring a certain level of security, including the use of biometric authentication for ATMs
  • NTT Data: Technologies for building online services, which will become a social infrastructure, such as CAFIS
    Daon: Knowhow for delivering global services using various biometric authentication solutions and Daon’s IdentityX software platform which enables several modes of biometric authentication
  • The objective is to deliver benefits to clients (end-users) and service providers by furnishing a platform for seamless and frictionless user authentication when using and providing services.
Moving forward

Ahead of obtaining approval from relevant regulatory authorities, we are considering establishing a joint venture, which will provide this service. The plan is to provide authentication functions not only for services provided by SMFG and NTT Data, but also for customers of other financial institutions and e-commerce companies, and internal user authentication for companies. After rolling out the service in Japan, we plan to look into expanding this service globally.

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About Daon

Daon, www.daon.com, is an innovator in developing and deploying biometric authentication and identity assurance solutions worldwide. Daon has pioneered methods for securely and conveniently combining biometric and identity capabilities in multiple channels with large-scale deployments that span payments verification, digital banking, insurance, and securing borders and critical infrastructure.  Daon’s solutions provide our customers with choice, making it easier and safer for people to conduct business online, travel, vote, and so much more. Daon’s IdentityX® Platform for mobile biometric authentication removes friction from the authentication process while dramatically reducing fraud to previously unattainable levels. IdentityX allows businesses to conduct transactions with any consumer at any time with total confidence.  Get to know us on Twitter, Facebook and LinkedIn.

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