Biometric Identification and Data Protection

Abstract

Introduction: In the digital era, one of the greatest challenges faced by the financial sector is implementing customer identification in a manner that is secure and compliant with data protection requirements. Biometric identification – including fingerprints, iris patterns and facial recognition – is becoming increasingly prevalent in banking security. However, the storage and processing of such sensitive personal data pose significant privacy risks, as biometric traits are immutable, and any unauthorized access may result in irreversible harm.

Objectives: This study explores how homomorphic encryption and decentralized data storage can enhance the protection of biometric data and strengthen system security without compromising the efficiency of authentication. The primary objective is to identify the main data protection challenges within banking security practice and to analyse emerging technological trends addressing these risks.

Methodology: The research combines a comprehensive literature review, an analysis of the relevant legislative and standardization framework, and primary data collection. Empirical data were obtained through a questionnaire survey and semi-structured interviews with professionals in banking security, information security and data protection, coupled with a comparative assessment of centralized and decentralized data storage models.

Results: The empirical findings reveal that 62.5% of respondents were familiar with homomorphic encryption, and 96.7% of them regarded it as a viable method for protecting biometric data. Additionally, 79.2% were aware of decentralized storage, with 82.9% recognizing it as a solution that enhances the protection of biometric information.

Conclusion: Expert interviews confirmed that these technologies significantly reduce the risks of data theft and leakage, while supporting the application of the GDPR’s privacy by design principle. The findings validate the risk-reduction effectiveness of the examined technologies and underscore the importance of enforcing privacy by design and fine-tuning regulatory frameworks to facilitate their practical integration.