The financial industry has been slow in the integration of authentication methods to its offerings because of local and federal regulation, but the COVID-19 pandemic has accelerated the rate at which change is being brought into the sector. During the pandemic, a large portion of consumers were unable to visit bank branches, open accounts or speak to representatives. Moreover, with the increased risks of identity theft and payment fraud, it is important that the financial sector continues to exceed security demands. To effectively meet the needs of the customer, financial companies will need to fully incorporate enhanced security solutions as the standard use of physical cards and passwords seems to be becoming obsolete.
Consumer demand for a new normal
The COVID-19 pandemic has served as a disruptor in every business sector by increasing the consumer demand for a new normal. Consumers would love to decrease their “touchpoints” and limit face-to-face contact. Additionally, consumers have reported a growing preference to manage accounts and make changes through banking apps and websites in order to reduce the number of trips they have to make to physical locations, as reported by Business Insider. Lastly, consumers are experiencing “password fatigue” with a high percentage reporting that they are taking to the idea of using biometric authentication rather than a username and password, to access their bank accounts. The customer is hopeful for a day where opening an account doesn’t involve filling copious forms and coming up with unrememberable passwords.
Mobile banking trends of 2021 to consider
Financial companies that are considering incorporating enhanced security solutions to their offerings should consider some, if not all, of these in-demand features of mobile banking apps:
Security and control
Account Management tools allow for a frustration-free experience mobile experience. A new survey suggests that 85% of respondents stated that their primary device is mobile. As a result, it is imperative of financial companies to provide basic banking functionalities via the mobile in-app experience. Security has been the biggest risk affecting the financial sector and the COVID-19 pandemic allowed scammers exploit the increased surges in digital and online banking. Advanced security features such as facial and voice recognition give customers the ability to be more in control. Additionally, these features could possibly make the risk of identity threats and fraud nearly obsolete. Lastly, alerts are important way for banks to reach customers. It’s imperative for banks considering mobile banking solutions to invest in easy-to use platforms and alerts that notify customers of purchases above a set amount.
Biometric solutions as a problem solver
Biometric solutions address the old and new problems facing the financial sector. Biometrics offer better security than fraud-prone passwords (they use something a person is instead of something they have or know). They are compatible with today’s mobile devices. They are fast, convenient, and allow for financial companies to reach customers in remote areas who may not have easy access to a local branch. Additionally, the added value of convenience and flexibility in this new normal would seemly meet consumer demands. With biometric authentication, opening a bank account could be done from the convenience of one’s mobile device. The authentication and liveness procedures require only a selfie or voice prompt, a virtually painless process.
The Knomi® mobile biometric authentication framework from Aware is a robust option for any financial company looking to incorporate mobile banking options and enhance their onboarding and authentication process. The mobile framework allows banking customers to use their mobile banking apps to apply for an account and then login to perform transaction without using passwords. Knomi® does this through biometric matching and liveness detection and provides secure and convenient facial and voice recognition for mobile multifactor authentication and onboarding. With built-in passive liveness detection, and a host of flexible configurations to choose from, Knomi® is an easy-to-integrate solution to add convenience and security to today’s financial workflows.
For more information about the Knomi® mobile biometric authentication framework, please contact us below or visit our webpage.