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According to a prediction by eMarketer, 60% of the US population will indulge in digital banking and that 150 million adults would access their bank, credit card, brokerage accounts at least once a month via digital channels. A rapid increase in mobile banking is observed as customers prefer doing financial management activities online. Therefore, in this competitive environment banks must refine their online and mobile services.
Although digital platforms are highly preferable, financial institutions must conquer issues related to security and also must guarantee an equally safe and convenient experience for these platforms. According to a survey by Fiserv, 64% of consumers do not use mobile banking due to security concerns. Therefore, to increase the indulgence of more individuals, financial institutions have to tighten the security issues.
Below mentioned are three trends that can be expected in the future of security for digital banking:
1. ATMs but no cards and pins
Many big banks are moving towards providing a quick and efficient customer experience by introducing ATM apps that either requires digital wallet or individuals can use their smartphone to pull out cash.
These services require a primary method of security like OTPs. Such passwords are not reliable and are prone to compromise strong security. Meanwhile, some firms are developing ATMs that will enable customers to complete their transactions through biometrics, which are better security as compared to OTPs.
2. Biometric Authentication
Some enterprises have adopted biometric authentication in their security platform; this has made authentication more convenient and user-friendly. Digital platforms will continuously verify users based on their behavioral patterns.
3. Digital Platform
There has been a decrease in the number of bank branches. These financial institutions are more likely to perform their traditional branch functions like loan initiation, from a central location and communicate with their clients through secure video chat technologies. Facial recognition, live location, selfies could be some tasks expected from the customers to ensure that the users are whom they claim to be.
Banks will come forward with e-signature technology for customers to safely sign electronic documents and may also include e-forms of application forms for credit and debit cards.