Frictionless Authentication – Key to Improved CX in Banking and Financial Services

Identity fraud and theft are a big problem for many businesses, but especially for the banking and financial services industry (BFSI). In fact, 47% of Americans experienced financial identity theft in 2020 and reports of identity theft rose 68% in 2021. Customers are encouraged to use strong passwords to protect themselves from identify theft.  But often, strong passwords, present their own challenges. 

For example, do you even remember all your passwords? Probably not, and you’re not alone; 4 out of 5 people have forgotten at least 1 password in the last 90 days. This is one explanation, perhaps, as to why people use weak or frequently reused passwords. 

Also, tough security measures can make customer experience (CX) a disaster. Imagine, for example, having to enter your password each time you needed to open your banking app, even for something as simple as, say, checking your balance. It’s no surprise, therefore, that 83% of customers are willing to switch brands for a better customer experience – and friction during authentication can be a major stumbling block when it comes to creating a great customer experience.

What is Frictionless Authentication, and How It Can Improve CX for BFSI?

What if there was a way to have strong security but easy access for the genuine customer?

There is, and it’s called frictionless authentication. Frictionless authentication is a fully automated solution which does not require the user to go through extra steps or remember passwords. Often, frictionless authentication makes use of biometrics, such as fingerprints, voice recognition, face recognition, and or other biometric markers to streamline the CX. These secure methods cannot be easily breached and they are readily available to the user because they are a unique and intrinsic part of them. 

In this article, we will look at how you can remove elements of friction in your authentication process, and why frictionless authentication should be part of a larger omnichannel approach. For example, merchants who removed points of friction, such as OTPs, through Visa’s Quick Checkout feature, enjoyed a 66% improvement in conversion rates, compared to those that did not. Plus, biometrics have now gained trust and popularity amongst consumers, with 53% of people believing that biometrics make transactions more secure

5 Tips for Quickly Implementing Frictionless Authentication

Go Single Sign-On (SSO) – Most financial services providers have multiple products and services, often requiring multiple login credentials. This is a huge stumbling block for CX and can be incredibly frustrating for your customer. So, make use of a good security, identity, and authentication module to enable a SSO for all of your products and services. You’ll improve CX, make it easier to gather, retain, and protect data, and make a great impression on customers. 

Bring Your UX and Security Teams Together – These two teams often work in silos, and this results in both falling short. Instead, have them work together, so you can design a truly secure, seamless, and convenient product by incorporating frictionless authentication. 

Use Password-less Authentication – It makes login seamless as users don’t need to remember and enter passwords, while also improving security by eliminating the risk of password-based attacks such as phishing, brute-force attacks, and credential stuffing. Password-less authentication relies on something the user has (such as a mobile device or security token) or something the user is (i.e., a person with biometrics). This can make it super easy for users and super difficult for unauthorized access.

Token-Based Authentication – Using tokens users can receive once and then not have to authenticate again if they have the token, reduces friction. 

Adaptive Authentication – This is particularly useful for BFSI applications because it uses risk-based analysis to determine the level of authentication that should be required for a particular user or transaction. This way, for low-risk and commonly performed transactions, or transactions below a certain threshold, authentication requirements can be waived or reduced, making it much more convenient for users. 

How Syniverse Mobile Identity and Authentication Solutions Can Help You Create a Frictionless, Seamless User Authentication Experience

Syniverse provides a range of Mobile Identity and Authentication solutions that work together to provide a seamless experience, along with many features that help reduce the risk of fraud and unauthorized access, without creating friction for the user. 

These include protocols for:

Phone Number Verification – which ensures each customers’ phone number in the database is accurate and up-to-date. This can then be used to quickly and seamlessly identify if a user is using their registered number. 

Account Takeover Detection – which provides protection from SIM jacking, where hackers takeover your SIM card fraudulently, thus intercepting your 1-time passcodes etc… used for 2-factor-authentication. This feature can also help to quickly verify and provide access for users in a way they will perceive to be seamless, while mitigating risks. 

Right Party Verification – which is a set of protocols used to automatically assess and protect against the risk of impersonation and fraud. 

We are also launching extra authentication services that reduce friction even further.

Syniverse’s Mobile Identity and Authentication features further integrate and interlock with its other Customer Engagement Platform solutions such as CPaaS (Communications Platform as a Service), which can be used by your customer-facing and communications personnel to better and more effectively provide a seamless, consistent omnichannel experience across all platforms. 

Why not discuss your requirements with one of our experts today and see how Syniverse can transform your authentication and customer engagement experience!

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