Cause and Effect: If you build it, will they come?

July 23, 2014
/   Spotlight

Many financial institutions assume that digital banking is lucrative because the most valuable customers happen to bank online. While there is certainly a correlation between online bankers and higher profitability, quantitative evidence suggests that...

Intuit 2020 Report: The Future of Financial Services

April 11, 2011
/   Insights

Today, Intuit released the latest edition of the Intuit 2020 report, Intuit 2020 Report: The Future of Financial Services, which identifies and examines four key trend areas that will  transform the financial services industry...

Fast Facts: Student Loans

January 22, 2013
/   Insights

The Financial Services Roundtable recently released another iteration of its Fast Facts, reliable, bullet-point research about issues facing the financial services industry. Topics span TARP, Dodd-Frank, insurance, lending, retirement savings and more.  Below are some updated Fast...

The Top 10 Trends in the Digital Banking Industry

December 18, 2013
/   Spotlight

2014 is rapidly approaching and as the year wraps, the Digital Insight team has pulled together the top 10 trends in the digital banking industry based on data and trends from studying financial institutions....

Making Banking Fun: Gamification in Financial Services

August 5, 2013
/   Insights

Recently, the Banking.com team sat in on American Banker’s webinar, “Gamification in Financial Services: Five Proven Ways to Get an Edge,” which shared how leading brands in financial services have applied gamification to reach...

Technology M&As: The Beats Go On

May 29, 2014
/   Insights

The ongoing fascination with Apple’s $3 billion purchase of Beats Electronics is entirely understandable, because it’s a cool story. However, it also says a lot about what’s going on between finance and tech.

What We’re Reading

May 5, 2011
/   Spotlight

Below are interesting stories the Banking.com staff has been reading over the past week. What have you been reading? Let us know in the comments section below. Virtual Banking Worlds Provide Tangible Lessons American...

Small Business: Perception vs. Reality

November 21, 2012
/   Insights

In the most recent election cycle, like most others before it, the one sector of the economy that got the most attention was small business.  This is the future, we were told by every...

What We’re Reading: Thanksgiving Edition

November 22, 2012
/   Spotlight

Below are interesting stories the Banking.com staff has been reading over the past week. What have you been reading? Let us know in the comments section below or Tweet @bankingdotcom. Mobile Thursday? Plans for Thanksgiving...

It has become more apparent, and more expected, that consumers have the ability to access and transact with their financial institution through any channel, at any time and based on individual needs and preferences. The continuous evolution of online and mobile banking has provided consumers with the ability to have this anytime, anywhere experience, but the tradeoff between securing access and providing a positive user experience seems to be at odds. Many consumers are surprised to learn that securing online and mobile banking with passwords not only creates a poor user experience, but does little to thwart cyber criminals. However, by embracing new approaches to authentication, security can be greatly enhanced while streamlining the user experience.

When creating an online and mobile experience for your customers, it’s important that the concept of a secure, multi-purpose user identity is at the center of your plan. In today’s competitive landscape, financial institutions have much to gain by moving towards a single, powerful credential that provides consumers with seamless access to multiple channels (online, mobile, POS, ATM, etc.) while serving as a multi-functional tool for accessing information, verifying transactions, signing or approving contracts and more. A trusted, secure user identity allows consumers to complete a variety of transactions with ease and more importantly, with a high level of confidence.

According to Goldman Sachs analysts, non-traditional digital banking startups are already jeopardizing around $4.7 trillion of the financial services industry’s business. Financial consumers care less and less about the end products — high-return deposit accounts or low-rate loans — and more and more about the simplicity, convenience and the empowerment of the omni-channel consumer experience. Acquiring and retaining consumers in a fiercely competitive marketplace — flooded with waves of non-traditional players — requires a consumer-centric digital strategy.

However, as cyber threats and online fraud continue to grow, consumers are increasingly concerned with the safety and security of their financial data and personal information, especially when engaging in digital banking and e-commerce transactions. The near-daily breach headlines underscore how traditional authentication methods cannot keep up with the evolving threat landscape. New approaches must be in place to ensure security.

Solutions providers are working to provide financial institutions with authentication and transaction security approaches that provide consumers with the frictionless digital banking and shopping experience they have come to expect. By providing security features that are transparent to the user or allow for low-friction ways to engage customers in the fight against fraud, banks are able to enhance trust and overall customer satisfaction.

As the consumer lifestyle increasingly centers on mobile devices, the seemingly obvious answer to achieving security is to leverage mobile devices as the center of the identity solution. Consumers are never far from their mobile device and more times than not, they will return home to retrieve it if forgotten. By utilizing a mobile device as an identity solution, financial institutions can ensure that the solution is always available and at the consumer’s fingertips – literally. And, because consumers increasingly conduct essential transactions via mobile channels, a trusted mobile identity enables them to access all of their digital channels and conduct digital transactions with a single, intuitive credential.

By embedding the secure digital identity into your mobile banking application, you are providing your consumers with a transparent authentication solution that allows them to carry out their transactions securely and with ease. When consumers access their mobile banking app, a simple PIN or biometric authentication to the device is all is that is needed to authenticate to the device – in the background however, the strong digital identity that is bound to the phone secures the mobile channel to the banking server. All of this happens within micro-seconds and allows the user access to the app as soon as their identity is verified – all without passwords, challenge questions or frustration.

Above and beyond simply accessing mobile applications and completing banking transactions, the same mobile identity is highly useful for securing online shopping transactions. When an online retailer verifies a customer’s sufficient funds with a financial institution, it also can request the consumer approve the transaction through a push notification sent to their mobile device. The customer can review and approve the transaction in real time with a simple tap or swipe providing assurance that only valid transactions are executed on their behalf. This allows the customer to create the perfect balance of peace of mind without the added hassle of dealing with dated authentication schemes.

Today, banks must rethink how they interact to meet the needs of the modern customer – providing novel approaches to security can streamline and enhance the user experience while building the trust that has become critical in this evolved digital world.

 

Mike Byrnes, Product Manager, Authentication at Entrust Datacard, has more than 20 years’ experience in product management and technology marketing with a focus on internet security and business communication systems. Mike drives product marketing for the Entrust IdentityGuard authentication platform with a significant focus on mobile solutions. In addition to mobile, his background covers identity and access management, fraud detection, malware protection, and email encryption solutions. Mike serves as vertical market prime for Entrust financial services segment, working with large banks across the globe to roll out solutions to their consumer- and corporate-banking client base.

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Voices

Compelling voices and contributed content from around the web

James W. Gabberty

Gabberty is a professor of information systems at Pace University in New York City. An alumnus of the Massachusetts Institute of Technology and New York University Polytechnic Institute, he has served as an expert witness in telecommunication and information security at the federal and state levels and holds numerous certifications from SANS & ISACA.

Marisa Mann

Marisa Mann brings over 15 years of experience in consulting and financial services industries to the Solstice team, working on large scale enterprise initiatives across many technologies, including specializing in the digital space – Internet and mobile. Mann is passionate about mobile and the endless possibilities for the enterprise, delivering business value through strong brand recognition and driving to excellence in the consumer experience. Prior to Solstice, Mann worked at JP Morgan Chase, Diamond Management and Technology Consultants, Washington Mutual, Inc, and Accenture.

Zachary Ehrlich

25-year-old writer, and as a native San Franciscan, I am unreasonably loyal to Bank of America, if only for their superhero-like origin story, involving the 1906 earthquake and Italian fruit vendors.

Brad Strothkamp

http://www.forrester.com/rb/analyst/brad_strothkamp