As consumers rely on digital channels to fill more complex financial needs, identity verification is crucial in the world of banking.
Fraudsters are finding new ways to slip past technological defenses, which leaves banks constantly upgrading the tools used to keep them out. For better authentication, financial institutions (FIs) are experimenting with artificial intelligence (AI) and biometrics, attempting to create security measures that don’t frustrate consumers.
In the latest Digital Banking Tracker™, PYMNTS examines how banks are innovating to address these security vulnerabilities.
Banks and payment players are adopting new technologies to keep customer data safe.
In the U.K., NatWest is among those experimenting with biometrics as a safer form of identification. The FI launched biometric payments for its business clients, enabling them to make payments using Apple Touch or Face ID. The new security measure comes as the deadline for Strong Customer Authentication (SCA) looms, less than four months away.
Other companies are working to marry security with customer comfort. California-based FinTech Binji has just come out of stealth mode with a new consolidated card. A popular idea for FinTech, the card pairs a physical debit card with a link to a customer’s various digital bank accounts. Customers can switch the accounts connected to the card through the accompanying mobile app as a way to have more control over their data and spend.
Meanwhile, other financial players are partnering to bring new products and services into the digital banking realm. Ally Financial and Better Mortgage have collaborated to create a fully digital platform for mortgage loans, simplifying the process to fit digital channels. The platform will launch in the U.S. by the end of 2019.
Meeting Innovation Needs for Four Generations of Customers
Banks must meet the challenge of not only catering to different generations, but meeting customer expectations at physical branches and via online channels. This is all while delivering faster, more secure banking experiences — a tall order.
With four separate generations of customers to serve, banks need to think about innovation in a different way, said Ashley Nagle Eknaian, head of Eastern Labs at Eastern Bank. Rather than approach technology as a catch-all, they should only innovate with a specific customer need in mind, noted Eknaian in a recent interview with PYMNTS.
To learn more about Eastern Bank’s approach to innovation, visit the feature story.
With consumers clamoring for more technology and innovation in their banking experiences, banks must still confront the problem of fraud. Many of them are turning to new methods of authentication that rely on tools like advanced analytics, AI and biometrics. Not only are these methods faster than previous security measures, like passwords, but they can eliminate many of the friction points that lead to customer frustration.
To learn more about how banks are using biometrics and AI to make security part of the customer experience, visit the Deep Dive.
About the Tracker
The Digital Banking Tracker™, a Feedzai collaboration, brings the latest news, research and expert commentary from the FinTech and consumer banking space. It also includes a provider directory, featuring the rankings of more than 250 companies serving or powering the digital banking sector.