For financial service companies looking to provide their customers with the smartest security possible, the key is going solely mobile.
Reports from the Federal Trade Commission indicate smartphones contain information about everything from where its owner goes and when, to even more sensitive information, from personal bank, email and other accounts. New authentication technology allows online and mobile financial service providers to use that information to ensure users are who they claim to be and keep fraudsters and other culprits at bay.
For the latest edition of the Digital Identity Tracker™, PYMNTS caught up with David Velez, CEO of Nubank, a Brazilian digital financial service provider, to discuss using smartphones and mobile devices to authenticate users and how he and his team work to protect their customers from bad actors.
Here’s a preview:
Nubank only allows users with smartphones to set up an account, which creates a high barrier to entry, especially in the company’s home of Brazil, where smartphone usage isn’t quite as widespread as it is in the United States.
The data contained in those smartphones also gives the company a powerful tool in the customer authentication process, Velez noted.
“Obviously, we have had a lot of fraud attempts, because the digital market has a ton of fraud,” Velez said. “The advantage of having just smartphone users is we can use just way much more data than traditional banks use, and that ends up being a huge advantage.”
Around The Digital Identity World
Multiple digital identity service providers recently announced new partnerships and collaborations. For example, Security systems integrator Tyco Integrated Security and EyeLock LLC are two providers who will be working together, as they recently announced they would collaborate on a new iris authentication solution for Tyco customers.
Meanwhile, BioConnect and EyeVerify also recently agreed to work on a new identity and authentication solution for the financial sector, and the nation of Cameroon partnered with digital security provider Gemalto to help stop fraud and document counterfeiting.
For its part, BIO-key International announced it has partnered with Access Sales Group to launch its first national enterprise and retail marketing campaign.
To download the September edition of the Digital Identity Tracker™, powered by Socure, click the button below.
About The Tracker
The PYMNTS.com Digital Identity Tracker™, powered by Socure, is a forum for framing and addressing key issues and trends facing the entities charged with efficiently and securely identifying and granting permission to individuals to access, purchase, transact or otherwise confirm their identity.