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.