This vendor-written piece has been edited by Executive Networks Media to eliminate product promotion, but readers should note it will likely favour the submitter's approach.
In this new generation of banking, ensuring that customers trust your digital security will be key. As many as 84 per cent of bank respondents Accenture polled for the 2016 Accenture Technology Vision for Banking report agree that trust is the cornerstone of the digital economy.
Cynics will snicker at the notion of using the words "trust and banks" in the same sentence. But let's be fair. While many people rank financial services companies among the least trusted in terms of being relied on to provide the guidance and recommendation customers want and need from banks, according to the 2015 Edelman Trust Barometer report, at the same time all of us rely on banks to be trustworthy with handling our money and data.
Banks need to build on that digital trust. Increasing offerings that include biometrics, contactless cards with fingerprint sensors, voice and touch recognition (to validate mobile banking transactions) are all examples of how banks can technologically build trust.
But banks also simply have to communicate better. They need to explain why data is being collected and for what purposes and who can access it legally. While banks have always done this on some level, it's becoming more imperative with each new digital innovation. If, for example, a bank determines from social media that a customer engages in high-risk behaviour, such as skydiving, should the bank consider this insight in assessing the customer's credit risk? Shouldn't the customer know this if in fact it's being taken into consideration?
We advocate that banks use data primarily to offer customers reciprocal benefits that are directly relevant to the data and service being provided, and to at all times be clear and transparent about how that data is being used. There needs to be a zero-tolerance approach to misuse of data by any partners that a bank may be working alongside. Banks should also incorporate next-generation security mechanisms to manage data security risks. Technologies such as "follow data wherever it goes" is helping in this area.
Banks should rethink identity and access management using more innovative techniques. For example, InAuth is a mobile-device security company that establishes the trustworthiness of a device before granting it access to network resources. Once a device is validated, solutions from the likes of BioCatch employ multifactor authentication that considers the way users interact with devices as a way to verify and provide identity. According to BioCatch, more than 33 million banking customers around the world are protected with its behavioural biometric technology.
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