Study indicates consumer authentication methods becoming a competitive differentiator
More U.S. consumers consider biometrics “exteremely” or “very” secure than any other form of digital identification (54 percent), ahead of knowledge-based questions (45 percent) and one-time passcodes (44 percent), according to a new report from remote identity verification company IDology.
The “IDology Consumer Digital Identity Study” also shows that 57 percent of consumers are more concerned that their personal information will be compromised than a year ago, and roughly the same number report they would be more likely to chose a financial institution with advanced identity verification methods.
“We’ve reached a turning point in how consumers view and value identity verification,” said John Dancu, CEO at IDology. “With consumer demand for smooth and secure interactions, and the high expectation for businesses to protect consumer identities, the way businesses authenticate and verify customers has become a true competitive differentiator.”
Consumers are concerned about online security, with 83 percent expressing moderate to extreme concern that their identity will be used to fraudulently open accounts, and 88 percent placing a premium on security when opening a new account online, while 72 percent place a premium on ease. Practices are yet to adapt to those concerns, however, as 54 percent write passwords down, and 73 percent seldom change them. Consumers are prepared to use more secure authentication for online accounts, as 92 percent expressed some willingness, and 45 percent said they are very or extremely willing.
A study released earlier this year by IBM showed similar results, but also indicated even stronger willingness to use biometrics among millennials.