Apple's new iPhone 5S, which comes with a fingerprint scanner, won’t store actual images of users’ fingerprints on the device, which is good news for advisors.
Apple’s new Touch ID system only stores “fingerprint data,” which remains encrypted within the iPhone’s processor.
If the fingerprint reader stores your fingerprint in a way that can be hacked, that would be a deal-killer for advisors. You would not want your fingerprint available where anyone could get at it, since fingerprint ID will increasingly be used instead of passwords in the years ahead.
One work-around, until the technilogy is tested and widely adopted, is to scan your pinky finger or some other digit instead of your index finger.
In the meantime, Apple is assuring users the new phone won't store your fingerprint online.