Consider your challenges
In a recent Javelin poll, it was revealed that cross account takeover tripled from 2014 to 2017. Much of this growth can be attributed to fraudsters who compromise email or mobile phone accounts, and then use one-time passwords as step-up authentication for high-risk events.
As financial institutions struggle to prevent this misuse of accounts from occurring, they create authentication systems that impede their actual customers. Currently, 1 in 5 attempts fail. And, 13 percent of financial organizations surveyed reported a failure rate of over 40 percent. That’s substantially higher than the average failure rate of 22.8 percent across all businesses. 1
Compare this to the entrenched consumer expectations established by leaders like Amazon. Click one button and whatever it is you desire will arrive on your doorstep tomorrow.
Which will you choose: protection or connection?
If you’re like many of the participants in this study, you’re grappling with an organizational dilemma. What do you do? Increase security measures to ward off the legion of fraudsters who become more and more sophisticated each day? Or offer your customers a hassle-free experience that solidifies your relationship?
The answer is: you do both.
Currently, 1 in 5 authentication attempts fail. 1 And, 13 percent of financial organizations report a failure rate of over 40 percent. 1 That’s substantially higher than the average failure rate of 22.8 percent across all businesses. 1
Understand your opportunities
With the proper approach
you can take steps to:
Determine what you want
Knowing who to trust
A circle of digital identity trust can help transform new and anonymous users into trusted, loyal customers. It helps you offer those people who want the convenience of mobile access anytime, anywhere enjoy a frictionless experience as they build and earn your trust.
There are 3 steps to establishing a circle of digital identity trust:
- Establish trust: New accounts/ anonymous users
- Sustain trust: Trusted/existing users
- Confirm trust: High-risk users
Building trust requires learning and ultimately knowing about the user, their device, specific activity, their technical environment, as well as their patterns of behavior.
With the advent of new technologies and analytics, this level of knowledge is now possible.
Digital trust begins with context
“Laying a strong foundation in robust fraud management strategy can free up resources to focus on other aspects of building relationships with customers.”— Javelin
Preserving Trust in Digital Financial Services: The role of identity and authentication 1
“It’s about the customer. It’s about security. It’s about the future.”— ISMG
2018 Digital Trust Survey 2
“Technology investment need not mean greater complexity. Smart investments, in fact, can make the entire process far easier for the customer and more secure for the enterprise.”— ISMG
2018 Digital Trust Survey 2
“...users demand streamlined experiences, in which fraud mitigation tools do not interfere with the tasks they are performing.”— Javelin
Trust in Digital Financial Services: The role of identity and authentication 1