Seven South African banks use the Department of Home Affairs' fingerprint verification system, according to minister Malusi Gigaba.
The Home Affairs National Identification System (HANIS) allows the banks to verify the identity of their prospective and current clients, using their fingerprints.
Although Gigaba does not reveal which banks are using the department's fingerprint verification services, he says the use of HANIS verification is increasing steadily.
As of December 2015, 3 682 branches used 16 058 finger-scanning devices, says Gigaba.
"Reports received from banks show syndicates now know they cannot get away with ID photo replacements due to the HANIS verification. Identity fraud has therefore decreased.
"If we are further to quantify the gains, we would say the HANIS verification service potentially prevents the loss of R322 million per month. Thus, an annual potential prevention estimate could come to about R3.8 billion. We are mindful also of the difficulty entailed in quantifying identity fraud."
Gigaba notes the department will continue to build its working relationship with the banking and insurance industries to curb fraud, particularly identity theft, and its resultant financial implications.
The partnership between home affairs and the banking industry dates back to around 2007, which saw the online fingerprint verification system being officially launched in 2009.
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