As new technologies emerge to transform the status quo, so does the opportunity for innovation around banking and payment services. Financial business leaders everywhere need to ensure they are investing in the right technology, and in some cases move away from legacy operations, even if it eats their own lunch.
But, as new technologies emerge, so to do the threats facing the industry. A lot of this has to do with the accelerated adoption of a digital lifestyle by consumers and enterprises. As a result, financial institutions must evaluate all possible risks to uphold the security standards of their account holders who entrust them with their sensitive personal and financial data.
A Technology-Driven Transformation
The world is in the process of a Digital Revolution, where everyone has the ability to talk, trade, and transact with anyone, anywhere. This transformation erodes boundaries and promotes inclusion.
I was recently reading an interview with Chris Skinner, one of the foremost influencers in the financial services industry. Skinner explains how today’s financial institutions are in a marketplace that includes thousands of fintech start-ups, leveraging “digital technology and consumer insight to improve the experience. This marketplace of apps, APIs and analytics is the banking ecosystem of the future. This massive cultural change – moving from a control freak to a curator – is inevitable and irresistible, with an open sourced structure being the only option going forward.”
Within the next five years, it is expected that more than 50 percent of banks with $100 Billion or more in assets will have commercial implementations of major emerging technologies that make a substantial digital imprint on the industry. This includes mobile apps, APIs, and biometric authentications, to name a few.
Seems to me like not only is the Digital Revolution in process, but it’s now in full force. Below are three key initiatives that are fueling this transformation.
- Anywhere, Anytime, Banking from Any Device
Banking has taken a dramatic turn within the past 10 years due to emerging technologies. From mobile banking to the current demand for a fast and convenient transaction process, technology is constantly evolving to meet the wants and needs of account holders. Consumers now expect the ability to access more complex banking services from their mobile devices. In turn, financial institutions are developing value-added features to advance their current mobile banking systems and keep pace with the consumer’s connected lifestyle.
- APIs: Enhancing the Overall Omni-Channel Customer Experience
As the use of APIs continues to surge with the popularity of open banking and third parties can leverage this integration to develop innovative products and services for account holders. This, in turn, enables financial institutions to fuel a heightened end-user experience.
In addition, with APIs financial institutions are pursuing new distribution channels, to provide an easy-to-use, frictionless experience with digital services offered across a multitude of touchpoints. According to the WRBR, 78.3 percent of banks rely on APIs when it comes to improving the omni-channel customer banking experience.
- Biometric Recognition
While customers want ironclad security when it comes to their financial information, many don’t want to deal with the inconvenience associated with heightened security measures. That’s where biometric recognition comes into play.
Utilizing the customer’s unique physical characteristics, biometric recognition technology enables users to conveniently confirm their identity with recognition software requiring a simple touch of their fingerprint or a scan of their face or voice. This technology confirms identity rapidly and non-invasively while also being highly secure, striking a perfect balance for security and convenience.
While no single technology is 100% secure, biometric recognition enables financial institutions to stay one step ahead of cybercriminals while still preserving a low-friction customer experience.
The Rising Need for ID Crime Protection
As the Digital Revolution has spurred a world without borders, there remains potential vulnerability around card-not-present payment models, especially with the growing reliance on smartphone technology.
According to Al Pascual, research director and head of fraud and security at Javelin Strategy, as noted to NBC News, “Criminals are getting much better at committing fraud online. Their skill sets are improving and the tools that they’re using are much more sophisticated.” This has led to the growing need to implement complex and secure strategies that assist in creating a safe and trustworthy banking environment.
Don’t Wait to Protect Your Customers’ Personal Financial Information
Understanding the importance of technology’s role in maintaining optimal security is critical. Financial institutions need to have a powerful grasp of the key aspects to look for in a potential technology vendor to ensure their unique needs are fully met.
EZShield + IdentityForce follows a robust, enterprise-wide, Information Security program based on industry best practices and standards. Offering award-winning identity theft and crime protection products, EZShield + IdentityForce aligns all services to meet partner needs and provides an engaging experience for your account holders all while ensuring the safety of their information.
If you’re interested in discussing a partnership opportunity, schedule a demo today.