4 Emerging Security Advancements in Banking Sector

Banking CIO Outlook | Monday, November 18, 2019

Advanced security features are gaining ground in the banking sector as the banks are eyeing to proof themselves against any possible fraud.    

FREMONT, CA: Security in banking is of paramount importance. With the emergence of technology, financial institutions are gearing up to meet the needs of modern customers. However, technological enhancements are also offering an increased number of entry points to hackers or attackers. While other industries may recover from security breaches such as data theft or network disruptions, a bank or a financial institution may end up with devastating consequences in case of a breach. A security breach into a bank’s network can compromise customers’ data, impart irreparable damage to the bank’s reputation, and can even lead the customers to withdraw their money from the bank resulting in a bank run.

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Banks are aware of the potential threats that accompany technological advancements and are transforming their systems accordingly. Banks are striving to ensure that sufficient levels of security, such as cybersecurity measures are in place. Financial institutions can also use the personal identity and biological data of the customers to provide an added layer of security to bank accounts. Here are some of the latest security advancements that are leading the modern security for the financial institutions.

Biometric Data

Biometric data includes the measurements and calculations of several aspects of human biology, which is used as a form of security against cyberattacks. Some of the prominent examples of biometric data are iris scan, fingerprints, voice, and behavioral biometrics. Biometric data security is gaining popularity among the banking institutions as the security feature makes it extremely difficult for the imposters to impersonate as an account holder. Thus, biometric technology is slowly replacing the conventional password, and signature-based security practices in the banking sector as biometric data security offers a faster and more secure alternative to the banks.

Facial Recognition

Facial recognition is gaining popularity across the industry verticals. The banking sector is among the forefront, which is using the feature to enhance its security capabilities. Apart from contributing to the security capabilities of the banks, facial recognition also helps to decrease friction in customer experience as the customers are not required to provide any documents or signatures. Like various biometric security measures, the inability to hack one’s facial constructs makes facial recognition a perfect fit for the banking sector.

Voice Authentication

Voice authentication systems read the voice of the account holder and match it with the tone and resonance of the voice store in the bank’s database. A typical voice authentication system records 80 characteristics of the vocal tract that can be valued on a scale from 1 to 10. It makes the uniqueness of voice to offer a better choice as a security measure for the banks. According to a study, 93 percent of the customers voted for the voice security systems owing to its speed and ease of use. 

Behavioral Biometrics

The way people scroll through the pages of a website or type on a keyboard or phone can be as unique as biometric data. Thus, several financial institutions track and record the customers’ taps and scrolls on the bank’s website. Behavioral biometrics refers to the tracking of an account holder’s physical movements. The security feature compares customers’ behavior to previous visits and determines the chances of fraud. The security feature is considered to be 99 percent accurate at detecting an erroneous behavior. Increasingly, the banking sector is embracing the behavioral security feature for early fraud detection as the fraudsters will still be surfing through the bank’s website. 

With the fraudsters getting better at their job, banks are also securing their platforms using technology as the means. Banks understand that a secure financial institution will automatically attract modern customers from all walks.

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