With the robust, user-friendly security in place, banks can widen their services offerings, nurturing security along with customer trust.
FREMONT, CA: Despite its recognized importance to businesses, trust is often found wanting in present-day banking relationships. The financial institution must evaluate what faith means for its business and how it wishes to be perceived by its customers, as there is no one-size-fits-all approach when it comes to building longstanding relationships with customers. The increasing number of cyber crimes can negatively impact firms from building trust. According to the report from Juniper Research, financial losses are expected to reach $9.2 billion by 2020, as mobile transactions become increasingly targeted. Analysts add that it is only going to get worse – 16,000 data breaches per annum are predicted by 2020, of which under 10,000 will be reported. To ensure trusted communication, financial institutions must consider the following factors.
• Converged Authentication
Using the mobile device as a possession, coupled with a robust identity scheme, is an acknowledged way of ensuring trusted communication. But banks offering much more than just security can do magic. Then each customer’s mobile phone could be turned into a convenient, trusted multifactor authenticator they can use both for in-mobile and off-mobile interactions, called converged authentication. Here the mobile phone becomes a single point of identity verification and transaction authorization for all the channels and experiences a bank wishes to deliver its customers. Converged authentication saves the customer’s time and hassle, the ultimate convenience meeting the most robust security in the customer’s hand.
• Authentication as an Opportunity
A consumer who feels secure with their bank will frequently transact, be loyal, and be willing to try new services. Authentication processes today must be designed not merely to avoid fraud, but to instill trust and give consumers better control. Instead of dealing with declined legitimate transactions, customers should be allowed to authenticate and authorize transactions as they happen, an added service that can increase the bank’s bottom line.
• Evolve Continually to Ensure Ongoing Robust Security
Complacency is the biggest challenge to banks and financial institutions. To grow and scale banks must engage in constant vigilance. Security needs continuous revaluation and modification of processes, devices, risk frameworks, and tools. Know Your Customer initiatives are a vital part of this process. Increasing regulatory scrutiny and fraud risk is influencing many financial institutions to increase the frequency of evaluations.
Payments, e-commerce, and even insurance management, are some of the well-known bank offerings. The more services a bank provides, the more customer touchpoints it gains, and the stronger the bond of trust between them becomes. Growth is where trust is!