#Symphony, a collaboration platform for financial services, plans to launch a fully end-to-end encrypted platform with recording that can support multi-person meetings in June.
Financial Technology
After receiving complaints from community #banks and trade associations representing more banks, FIS has backed away from imposing a cybersecurity #surcharge.
Financial Technology
#Security #threats continue to expand in financial services and #banks, insurance companies and securities #firms #should #look at #managed security for better protection, says Accenture.
Financial Technology
#Commonwealth is finding investment firms, foundations and a major retailer are interested in looking for ways to help lower income people find ways to save through innovative programs including prize-linked savings.
Financial Technology
The European Union’s new regulations, the General Data Protection Regulation (GDPR) and Second #Payment Services Directive (#PSD2), require secure transactions and data handling as well as good customer experience. PSD2, in particular, requires strong customer authentication (SCA) methods, which dictate “two-factor authentication” to ensure all payment approvals are in place. Two-factor authentication means that authentication of a customer’s identity must be based on two or more of these elements: knowledge (something the user knows), possession (something only the user has) and inherence (something the user is).
The strict PSD2 RTS requirements may lead to friction in the payments process in online and POS (point-of-sales) checkout. Existing SCA methods such as SMS-TAN and iTAN will be considered non-compliant and not user-friendly. However, PSD2 aims to improve user experience and keep #security—namely inherence. Inherence is the element that allows leveraging of biometric data and mechanisms for SCA.
Technological advancements are augmenting e-commerce payments and payments innovation methods, which further enhance the consumer appetite for seamless, frictionless and secure payments experiences. #Biometrics is one of the latest and most cutting-edge technologies being adopted. It’s usually integrated into applications to strengthen security and curb identity fraud. Fingerprint payment is the most common biometric payment method; however, experts predict that other systems—including face, eye and voice recognition—will become more widespread over time. The question is, are these mechanisms compliant with the new regulations and what do #banks need to consider about biometrics in a highly regulated business?
Consumers are inclined toward using biometric solutions to protect their transactions because of their #convenience and speedy authentication process—and more and more banks are adopting biometric #technology as part of their identity verification process to improve user experience. The future of biometrics in the online payment process is promising.
New technologies are now enabling rapid innovation in two areas of biometrics: visual biometrics (face recognition, fingerprints, finger-vein, hand/finger geometry and iris/retina recognition) and behavioral biometrics (dynamic signature verification, keystroke dynamics and voice recognition). Alongside the emergence of these new modalities, other innovations are also in development:
As biometric solutions gain momentum and uptake, they face challenges associated with their implementation, such as the need to comply with the PSD2 RTS requirements, technology to ensure the solution’s functionality and security, and the need to develop an ecosystem in which biometric methods are used in a consistent and standardized way, across multiple markets benefitting from network effects.
Though not without its obstacles, adopting biometric payments provides a future roadmap for a seamless, safe and frictionless payments experience. It will be interesting to see how biometrics develops in the coming years, adapting to customer expectations and overcoming the hurdles of implementation.
The post How will biometrics balance payment security &038; convenience under PSD2? appeared first on Accenture Banking Blog.
PREMIUM – U.K. challenger bank #Monzo has made headlines recently for massive losses that quadrupled year-over-year. #Loses were recorded at £33.1 million ($ 43.6 million) in 2017, up from £7.9 million ($ 10.4 million) the previous year, according to the Financial Times. But customers may care more that the digital-first bank had a win when it comes to […]
Bank Innovation
#Security breaches continue to be an ever-present threat for financial institutions. Defending against attacks and authenticating customers without creating undue friction is something financial institutions have not yet completely solved. #Consumers seem to be willing to use more secure methods to access their accounts, but not necessarily give up on ease and speed of transacting. […]
Bank Innovation
The most vulnerable aspect of a #bank‘s #security is the people — employees and customers — or so the story goes. But four security experts came together to discuss the issue and opinions differed. For example, can you still call #humans the #weak #link when #banks fail to use the best #technology? This means education […]
Bank Innovation
SANTA CLARA, Calif. – Day 2 of FinovateSpring has come and gone, and curiously, there were #still no demos focused on #blockchain #technology. Among the 54 fintechs that demoed here over the last two days, #more than half showcased products and services that used artificial intelligence in some shape or form, but none of the […]
Bank Innovation
With the introduction of the EU’s revised Payment Service Directive (PSD2), the financial system is witnessing transformation in the banking system, along with the emergence of the concept of Open Banking.
On one hand, PSD2 aims to drive #innovation and competition in the #market by asking #banks to open their infrastructure to third-party providers (TPPs) with application programming interfaces (APIs), while on the other hand, it requires banks to reconcile authentication systems with frictionless user experience.
The number of TPPs connecting to banks’ systems will increase, boosting the risk of unauthorized access to customer data or even fraudulent initiation of payments. It also becomes very important for banks to move to a more standardized #security architecture and establish a security gateway for pre-validation of API calls, and more. The strict PSD2 security requirements stated in the Regulatory Technical Standards (RTS) on Strong Customer Authentication (SCA) and Common Secure Communication (CSC) could harm user experience, but the RTS provides a way out: behavioural biometrics.
With the arrival of new entrants in-market, banks will face increased competition. Thus, to retain their position in the payments space, banks could turn innovative security into a market #differentiator.
Hence, we can say that while PSD2 aims to protect consumers from fraud by increasing payments security measures around biometrics, it also enhances competition and innovation.
Read my complete blog on this in more detail and share your views.
The post Security innovation as a market differentiator for banks appeared first on Accenture Banking Blog.
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