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Banks need universal mobile biometrics and more sophisticated measurement, reports indicate

Trulioo, Access Softek, and Aite Group-Giact reports show room for improvement in financial services

smartphone biometric identity and document verification

More than half of financial service providers and 72 percent of online marketplaces have adopted more identity verification technology, such as mobile device-based biometrics, in direct response to the digital shifted prompted by COVID-19, according to a new white paper from Trulioo.

‘Mastering identity verification measurement and performance’ shows 70 percent of financial services organizations are now taking proactive identity verification approaches, and explores the concept of measurement in identity verification.

Cost is important, Trulioo argues, but measuring success factors for customer onboarding is also necessary to gain a full understanding of how effective identity verification processes are. Nearly three-quarters of consumers say the online account opening process can “make or break” their relationship with the brand.

The frequency and impact of fraud is frequently measured, according to the white paper, but improvements can be made in measuring compliance, and Trulioo makes a case for measuring “time to verify.”

“The increase in fraudulent activity as a result of the pandemic isn’t the sole driver for the change in how financial services companies approach identity verification, but it’s a situation that has endorsed a ‘front-foot’ approach,” says Zac Cohen, COO, Trulioo. “While reducing the impact of fraud is key, so too is increasing trust and privacy, improving the customer experience and maximizing business revenues and profitability – all of which are connected when it comes to a high-quality identity verification experience.”

Trulioo hired a new CTO and CRO already in 2021 to lead the next phase of its growth in biometric identity verification and remote onboarding.

Consumers want mobile biometrics for omnichannel identity verification

Mobile biometrics for identity verification would improve service and support experiences in financial services, according to 63 percent of consumers surveyed by Access Softek.

Nearly half of consumers told Access Softek that a consistent and unified verification across channels would help, and 47 percent said the use of mobile biometric verification by a financial institution’s contact center would increase their regard of that business.

The company has responded by launching a new API for financial institutions to integrate its Biometric Authentication Manager into any channel or system. The API enables banks and credit unions to authenticate callers from mobile devices across any channel, including branch interactions, IVR, contact center or digital banking environments simultaneously, Access Softek says.

“There is a direct correlation between the use of passwords or pins and security breaches for financial institutions,” says Chris Doner, founder and CEO of Access Softek. “By using mobile-based biometric authentication such as fingerprint scans or facial recognition, financial institutions reduce their risk of fraudulent behavior, eliminate the password and create the most secure experience for customers and members engaging with their bank or credit union. These measures help users quickly and easily verify their identities and ensure that financial institutions are interacting with the right account holders.”

Nearly half of US consumers have experienced identity theft since 2019

Almost half of U.S. consumers have experienced identity theft in the last two years, more than a third (37 percent) have experienced application fraud, and 38 percent have been victimized by an account takeover attack, according to new research from Aite Group.

Losses from these identity theft incidents in 2020 totaled $712.4 billion, according to the ‘U.S. Identity Theft: The Stark Reality’ report, a 42 percent year-over-year increase.

When people experience these breakdowns in digital identity security, the assistance provided to them is frequently considered unsatisfactory. People experiencing identity theft related to new credit card application fraud who were dissatisfied with the help they were offered are unlikely to do business with the financial institution involved in 42 percent of cases, and for those experiencing fraud in consumer loan applications without adequate assistance, 56 percent said they would not likely deal with the institution again.

The report was underwritten by Giact, which was acquired by Refinitiv last year to boost its real-time payments analytic capabilities.

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