Yasuyuki Taneda Consumer Finance Division Business Planning Department Manager

In response to rising levels of theft and forgery of cash and credit cards, not to mention magnetic stripe skimming, the Bank of Tokyo-Mitsubishi UFJ introduced a unique biometric recognition system to protect customers' accounts in October 2004. This system identifies the person by shining near-infrared light on the palm of the hand and analyzing the vein pattern reflected onto the scanner. While other banks also use biometric recognition and public awareness is on the rise, it is the ways in which this technology is set to be used in financial services that are gaining the most attention. Among Japanese banks, Bank of Tokyo-Mitsubishi UFJ is a pioneer in the application of biometric recognition systems and committed to develop customer-oriented services.
 

There are many different kinds of biometric recognition. Why did you choose the palm vein system?
The palm vein system has two main advantages: superior accuracy and the fact that vein information cannot be stolen or copied, as it is inside the body. Over approximately six months, we carried out reliability and safety tests and held in-depth discussions about the suitability of this technology for card-aided bank transactions (both in-branch transactions and ATM transactions). Eventually, we narrowed our choices to systems that recognized palm veins, finger veins and fingerprints. In a pre-implementation survey, users found the palm vein system to be the simplest and easiest to use. In the end, the deciding factors were accuracy, ease of use, the greater hygiene of a non-contact system, high adaptability and the minimal influence of outside factors, such as temperature. An additional factor was the customer assessments.

How have customers reacted to the vein recognition-adapted card since its introduction? How many cards have you issued so far?
Thankfully, our customers showed great interest in this project even before its official launch. Customers who applied for these cards are very happy that we are the first bank to commercialize biometric technology and provide this optimum level of security. Customers report that the cards are easier to use and more convenient than expected. Nevertheless, we are doing all we can to ensure a smooth transition for the elderly who are least accustomed to this kind of system. So far, approximately 900,000 people have been issued with cards, with more than 7 million transactions to date. At present, 2,100 of a total of 9,000 ATM machines use biometric recognition, and this number will be increased by 2008, when integration with the old UFJ Bank system is completed. Our target is to install 6,000 ATM machines that use biometric recognition.

How do you envision your future use of biometric recognition?
As part of our "Overall Card Strategy," we have concentrated on convenience, cutting-edge technology and security in the development of our multifunction IC card, which in itself took four years. IC cards provide considerably higher security to our customers, and when coupled with a biometric recognition system, this security is optimized. Other banks are also moving in this direction, and we are planning to confer with all banks and vendors in order to provide full compatibility. We are examining maximum IT utilization and partnerships with other companies in order to develop higher-grade, multi-function IC cards that will fulfill the needs of our customers.