90% of Banks Lag in Ability to Authenticate Customers and Step-Up Security
Respondents’ top challenges include legacy solutions and processes tied to user name/password technology
OneSpan (NASDAQ: OSPN), recently released The Future of Adaptive Authentication in the Financial Industry, a report prepared by the Information Security Media Group. Based on a broad survey of US financial institutions, the report reveals the sector’s challenges in authentication practices and strategies, and highlights the growing tension between improving security, reducing fraud and enhancing the digital customer experience.
The survey results reveal the biggest challenges stopping banks and financial institutions from being able to confidently authenticate customers and step up security include:
- 96% of organisations still rely on legacy processes tied to username and passwords for authentication;
- 44% have too many disparate tools, which are challenging to coordinate effectively;
- 44% are challenged by the use of legitimate credentials exposed in data breaches and social engineering schemes in account takeover attempts.
As a result of these challenges, more than 60% of respondents plan to invest in new multifactor authentication technologies in 2019, including those that rely on biometrics and AI/machine learning.
“The report’s findings echo what we are seeing with our customers,” said OneSpan CEO, Scott Clements. “Financial institutions are under pressure to improve their defenses against continuing and evolving threat vectors. Many are now choosing innovative technologies that dynamically respond to attacks as part of a layered security approach that stops fraud while improving the customer experience.”
The report features Aite Group’s Retail Banking and Payments Research Director, Julie Conroy, on the need for financial institutions to improve authentication methods using the latest authentication methods and technologies, including artificial intelligence, machine learning and behavioral biometrics. These emerging technologies, paired with digital identity technologies, provide a better customer experience and help financial institutions remain competitive.