Voice biometrics. Advait Deshpande. 2002-2013 Nuance Communications, Inc. All rights reserved. Page 1

Who is Nuance? Reinventing the relationship between people and technology Defining the next generation of human-computer interaction: Intelligent Systems Deeply invested in creating effortless and natural user experiences Best known for rapidly advancing voice-recognition technology The only publicly held USbased Voice Biometrics solutions provider Nuance Confidential 2002-2013 Nuance Communications, Inc. All rights reserved. Page 5

7 billion mobile cloud transactions annually 4,100 patents & applications 65+ countries 14+ billion customer engagements per year 12,000 employees 80+ languages 800 million mobile keyboards shipped annually 15,000 mobile app developers 1,200 voice and language scientists and engineers 5 billion lines of medical data transcribed annually 25 million voice-enabled cars sold annually 6,500+ companies use Nuance Enterprise solutions 2002-2013 Nuance Communications, Inc. All rights reserved. Page 6

How it Works? Behavioral Characteristics Pronunciation, emphasis, speed of speech, accents Physical Characteristics Unique physical traits of your vocal tract, mouth shape and size, nasal passages 2002-2013 Nuance Communications, Inc. All rights reserved. Page 8

85% respondents dissatisfied with current automated authentication system. The questionnaire was designed by Coleman Parkes Research in close conjunction with both Opus and Nuance. The research was conducted in May 2012 and undertaken under the strict rules of MRS. 2002-2013 Nuance Communications, Inc. All rights reserved. Page 10

Threat landscape Identity theft achieved easily via social networks, Phishing, Vishing, Smishing Phone channel is new frontier for Fraudsters. Stop relying on Challenge questions facebook has all the answers! Don't rely on easily exposed data to identify callers: Birth Date, Account Numbers 2002-2013 Nuance Communications, Inc. All rights reserved. Page 13

Mul$ factor authen$ca$on not an op$on anymore! Something you have: Mobile Phone Token Card/Document Something you know Password PIN Question Something you are Voice signature Fingerprint Facial recognition Regulatory (FFIEC, Basel) Recommendations Single-factor authentication methods are inadequate for high-risk financial transactions Financial Institutions can us a variety of methods to establish authentication, including These methods can be either single factor or multi-factor Multi-factor authentication is not just a good idea its required by regulators!! 2002-2013 Nuance Communications, Inc. All rights reserved. Page 14

More Secure than PINs, Password Up to 30% of financial account takeover fraud is perpetrated on channels with PIN/Password authentication Up to 60% of US consumers use the same Passwords for multiple credentials* Up to 25% of users fail knowledge based authentication while fraudster successfully get through 2002-2013 Nuance Communications, Inc. All rights reserved. Page 15

Voice Biometrics Solutions Active Speaker Verification Passive Speaker Verification Verifies a speaker s identity based on voiceprints acquired during an interaction with IVR, web, or mobile applications IVR/Mobile/Web Interaction Transparently verifies the speaker s identifies during the course of natural conversation Agent Interaction 2002-2013 Nuance Communications, Inc. All rights reserved. Page 17

What is Voice Biometrics used for today? Use cases Business cases Improved call automation Reduced call handle time Improved agent satisfaction Increased client satisfaction Increased revenues Reduced fraud 2002-2013 Nuance Communications, Inc. All rights reserved. Page 18

Voice Biometric Deployments Financial Services Telecom http://voicebiocon.com/2013/03/12/nuancetargets-password-reset-technology-for-smalland-mid-sized-businesses/ http://voicebiocon.com/2012/07/13/makinginroads-into-eastern-europe/ http://www.bloomberg.com/apps/news? pid=newsarchive&sid=af9oh5v36.mo http://enterprise.alcatel-lucent.com/ private/active_docs/ customer_references/ SS_NA_MTS_Allstream_Consulting_scr een.pdf http://www.cio.com/article/ 686441/2011_CIO_100_How_Three_Compa nies_are_using_it_to_rethink_consumer_ Services http://www.computerweekly.com/news/ 2240179218/Barclays-streamlines-phonebanking-with-voice-biometrics http://www.turkcell.com.tr/c/docs/ announcements/ announcements_20120302_globalbilgi_voi ce_bio_and_satisfaction.pdf http://www.speechtechmag.com/articles/? ArticleID=67963 2002-2013 Nuance Communications, Inc. All rights reserved. Page 19

Building a compelling business case The traditional business case is based on AHT savings Increased IVR containment, FCR Cost avoidance by reducing fraud 2002-2013 Nuance Communications, Inc. All rights reserved. Page 21

New approach to business case Operational savings Improved customer experience Revenue generation Evolving approach *Harvard business review July august 2010 2002-2013 Nuance Communications, Inc. All rights reserved. Page 22