South Korean lenders plan to test bio authentication technology for banking services as early as the second half of this year, a central bank official said Wednesday, reflecting a growing demand for tougher security measures following a series of data leaks and phishing cases in the local financial sector.
  

"Some of the country's 17 banks are expected to take part in a pilot run for bio authentication technology in the second half. If successful, consumers may be able to use such services as early as next year," said Kim Jung-hyeok, head of the Bank of Korea's electronic banking team.
  

The authentication technology, which will enable consumers to access their bank accounts without security cards and bankbooks, is expected to adopt iris and vein recognition technology rather than fingerprint sensors, which have proven to be ineffective in previous cases, according to Kim.
  

The BOK official, however, said that in order for the launch of the new authentication technology to be successful, the standardization of the process and regulation of data management should be established.
  

Consent from bank customers or a third-party institution collecting and handling their bio data is another prerequisite for the biotechnology to be applied to financial services, Kim added.
  

The move comes on the heels of repeated cases of massive data leaks at local financial firms. Last year, customer data from financial heavyweights -- including Kookmin Card Co., Lotte Card Co. and Nonghyup Bank -- were compromised, raising the demand for tightened security measures. (Yonhap)