Consider authentication in financial services

The pandemic has changed the way we think about what it means to be digital first. Retail businesses and banks are under pressure to retain customers in other ways, as customers’ dependence on their physical locations decreases and the emphasis on online services and factors such as app ratings increase.

About the Author

Amir Nooriala, commercial director at Callsign.

This is positive in a sense, as online transactions are certainly more COVID-secure than face-to-face interactions, but are they secure from a trust and security perspective? And how easy are they in terms of the login and verification experience?

We must strive to provide answers to these questions to ensure that we provide consumers with the solutions they need to make their lives easier. Much of this comes down to financial organizations, which need to consider the digital priority of their products and services and how they can build consumer confidence when it comes to interacting online.

Businesses are under pressure to find digital solutions that deliver great customer experiences, while differentiating themselves from their competitors. While balancing the need to increase digital trust and manage the security of online interactions, otherwise businesses could risk losing their customers altogether.

Outdated systems are a problem

We know that the financial services industry has had to evolve its offering many times over to ensure it keeps up with changes in technology and society. However, this is not a simple task considering the amount of sensitive data and information they contain.

With that in mind, legacy systems can be the downfall of a financial organization and leave them open to hackers. It can be cumbersome to switch solutions, but they need to recognize that a lack of strong authentication methods is a potential vulnerability – and one that fraudsters will most certainly take advantage of given the chance.

However, this is where digital transformation comes in. It offers financial organizations the ability to create digitally-enabled services, allowing them to rethink consumer behavior online, and then implement the right technology to adapt to that behavior. This will help build trust between the consumer and the technology they use, increase their trust in the organization to deliver an exceptional experience, and build brand loyalty.

Overcome these challenges

But how can organizations introduce a digital-first approach? As an example of the challenge, one-time passwords are an outdated authentication process that has just been digitized in order to improve it – but this method is a popular way for criminals to exploit consumers and can have huge implications for the trust they place. in organizations to conduct transactions securely.

The pandemic has demonstrated this all too clearly, as thousands of people have faced a deluge of scams involving text messages. Almost a quarter of respondents (24%) in the latest Callsign research say they receive more text messages from scammers than their own friends and family.

By relying on the digitized version of outdated processes like this, the financial services industry is creating opportunities for cyber attackers and helping to fuel the rise in scams. Instead, they must transform their services based on what customers need, as opposed to what they have become familiar with.

Having the right solutions in place is key

It’s about having the right technologies to go digital and using them to give customers the confidence to rely on those solutions as we continue to move towards an increasingly online world. Financial institutions need to start authenticating their customers using technology that integrates seamlessly into user journeys, without creating complications or a disruptive experience.

Behavioral biometrics is a prime example. It is device-independent, which means it is not dependent on a single device, and in an age where customers use a multitude of devices and channels, this is essential to improve the user experience of safe and secure way.

Passive behavioral biometrics also uses millions of data points to verify if a user is genuine, when combined with device and threat information, and removes the single point of failure that plagues most security methods. traditional authentication. Customers expect frictionless journeys, and this kind of technology can be integrated seamlessly into any stage of the process, making it a much better authentication method suitable for a financial services industry focused on on digital.

What future for the sector?

Simply put, financial organizations need to think about the technology foundations that underpin their business and assess whether they are the best way to deliver the best digital service to their customers. They need to consider this alongside their customers’ identity authentication needs and make sure it’s a priority rather than an add-on.

We need to eradicate the siled approach in business and instead establish a way for different teams to work together to create strong digital foundations. All of this will help to ensure that malicious actors do not have the opportunity to exploit customers and that consumers are offered the safe and secure solutions they deserve, in order to continue to build this ever-increasing trust between them and organizations.

We presented the best identity management software.

Stephen V. Lee