Biometric authentication is much more user-friendly and safer compared to passwords. This is mostly because passwords are always difficult to remember and can cause other security vulnerabilities.
FREMONT, CA: With the global growth of digital and mobile banking, concerns about the protection and security policies of e-money platforms are emerging.
Alternatives to conventional banking have risen steadily in popularity in today's digital age. People around the world are responding to the convenience that Fintech platforms and mobile banking apps offer. In addition, consumers enjoy the fact that they can handle their own money on their own terms; without visiting a bank branch and struggling with paperwork.
Identifying customers with KYC procedures
KYC stands for Understanding Your Client. This is a series of procedures for the identification and authentication of customers in compliance with the regulatory requirements of the EU. But how is it going to work, and why is it important?
Online-only banks and fintech companies offering financial services must check the identity of the customer before opening the account. Identification is done online, usually with a short video chat or a passport photo and a selfie. However, no matter how this is done, an identity search is key in the fight against fraud and identity theft.
Extra protection for two-factor authentication
Also known as two-step verification, two-factor authentication is a standard security mechanism used by customers when signing in to a digital banking account. And it's working quite clearly.
When you log in to your account, you must enter a special, one-time passcode along with your password. Currently, this happens via SMS on your mobile phone. This way, even though anyone has your password, they can't access your account or make transactions without a password. You can only use each passcode once; any time you log in or make a payment, you will get a new code. Alternatively, you can use a smartphone app, such as Gatekeeper, to create codes instead of receiving them by email.
Biometric Verification for Digital Banking
Many consider biometric authentication to be one of the most effective weapons used by fintechs to deter fraud in digital banking. It uses biological features such as fingerprints, voice patterns and eye retina to allow access to and verify transactions.
Biometric authentication is much more user-friendly and safer compared to passwords. This is mostly because passwords are always difficult to remember and can cause other security vulnerabilities. Although fingerprint scanning is currently the most common biometric solution, there is likely to be a rise in voice and facial recognition.