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- Banks to invest heavily in updating legacy systems to combat challenger banks expired
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4th December 2018
Entersekt asks if banks can live up to the trust that consumers put in them
In the financial services realm, payments are being subsumed by contextual applications. The mobile app and the mobile experience – which includes voice recognition and social media integration – have changed consumers’ expectations, but the authentication mechanisms used by financial institutions have been unable to keep up and reliance on passwords is a large part of the problem.
It’s not all dire, though, according to an Entersekt-sponsored Mercator white paper: banks have the opportunity to live up to the trust that the vast majority of consumers place in them. They can retain their position as the honest brokers at the centre of every transaction; which can be relied upon to protect and defend the customer’s identity just as they protect and defend the customer’s funds and assets.
It all comes down to digital channel enablement within the banking ecosystem. Advances in authentication give financial services institutions the opportunity to provide services, security, products, and state-of-the-art functionality via every channel through which they reach their customers. This enables a unified experience, rendering the financial services provider not just a facilitator of purchase functionality, but the clearing house for all that is most important in the customers’ relationship to – and behaviours regarding – their money.
Using the mobile device for authentication wherever possible means that it serves as not only a secure channel between the financial institution and the consumer, but as the source of the security of that channel. It becomes the device that indicates to all parties — the financial institution itself, merchants, and automation end points like ATMs — that users are who they say they are.
This, as well as using relationship integrity to contribute to self-sovereign identity, are cornerstones of this new security paradigm for the new digital world. Read the report at: https://www.entersekt.com/resources/white-papers/a-new-security-paradigm-forthe-new-digital-world