Brazil’s Itaú rolls out facial biometrics to tackle auto loan fraud

April 15, 2019 TH Author

Brazilian bank Itaú Unibanco will roll out facial biometrics to fend off fraud in auto loan processes and improve customer experience.

As well as avoiding scams, the tool being introduced this month across over 10,000 locations is aimed at ensuring a smooth process when it comes to approving and releasing credit for customers who want to buy new and used cars.

Vehicle financing applications to the Brazilian bank that initiate at dealerships and partner stores are carried out in a platform provided by Itaú platform. Customers then provide their information and documentation so that the request can be sent over to the bank.

With the new technology, customers will be contacted automatically via SMS and email with instructions to activate the camera of their smartphone and take a “selfie”, which will then support the authentication of the credit request and ensure it is not a fraudulent claim.

“Investing in technology to develop innovative solutions aims to reduce bureaucracy in the process of buying and selling vehicles, improving the consumer experience and, consequently, the efficiency of the entire automotive chain,” says director at Itaú Unibanco, Rodnei Bernardino de Souza.

“We work based on this premise with the mission of facilitating the client’s and the shopkeeper’s journey, making the operation more digital to ensure an even safer and more agile process for all, ” Souza adds.

Facial recognition is being used by Itaú in other parts of its operation. Earlier this year, the bank rolled out cameras equipped with artificial intelligence technology to boost the security and customer service of physical branches.

The AI-enabled cameras also play an important role in the customer experience at the branch: facial recognition allows the bank to determine the number of clients within the agency, measuring queue time and generating heat maps to establish which sector has the highest concentration of people.