Respondents' top challenges include legacy solutions and procedures tied to user name/password technology
OneSpanTM (NASDAQ: OSPN), a global leader in software for trusted identities, e-signatures and secure transactions, today announced the release of The Future of Adaptive Authentication within the Financial Industry, a report made by the Information Security Media Group. With different broad survey of US banking institutions, the report reveals the sector's challenges in authentication practices and techniques, and highlights the growing tension between improving security, reducing fraud and improving the digital customer experience.
The survey results reveal the largest challenges stopping banks and financial institutions from being able to confidently authenticate customers and step-up security include:
- 96 percent of organisations still depend on legacy processes tied to username and passwords for authentication;
- 44 percent have too many disparate tools, which are challenging to coordinate effectively;
- 44 percent are challenged by the use of legitimate credentials exposed in data breaches and social engineering schemes in account takeover attempts.
As a direct result these challenges, more than 60 % of respondents plan to invest in new multifactor authentication technologies in 2021, including the ones that rely on biometrics and AI/machine learning.
“The report's findings echo what we should are seeing with our customers,” said OneSpan CEO, Scott Clements. “Financial institutions they are under pressure to improve their defenses against continuing and evolving threat vectors. Many are now choosing innovative technologies that dynamically react to attacks as part of a layered security approach that forestalls fraud while improving the customer experience.”
The report features Aite Group's Retail Banking and Payments Research Director, Julie Conroy, on the need for financial institutions to improve authentication methods while using latest authentication methods and technologies, including artificial intelligence, machine learning and behavioral biometrics. These emerging technologies, paired with digital identity technologies, give a better customer experience and help banking institutions remain competitive.
Download the full report at www.onespan.com/resources/ISMG-Future-of-Adaptive-Authentication-in-the-Financial-Industry.