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Digital ID trends for finance: cloud authentication, tokenization and credit profiles

Advance.AI and Entrust enter new partnerships
Digital ID trends for finance: cloud authentication, tokenization and credit profiles

A new webinar episode from Business Insider and Au10tix explores new identity verification trends in relation to financial services. The event was held as an innovative approach to digital ID service providers for the financial services market was announced by Advance.AI, and Entrust unveiled a customer win to provide cloud-based authentication for bank customers.

Titled “Cutting-Edge Identity Verification Is Transforming Financial Services,” the online event saw the participation of Ravi Devesetti from Experian, Linda Duncombe from City National Bank, and Au10tix CEO Carey O’Connor Kolaja.

The experts discussed several topics at the intersection of digital identity and financial services, including tokenization.

“Tokenizing data — allowing it to be used in interesting and safe ways without sharing — is definitely at the forefront,” Kolaja explained.

“And I think it’s going to take a lot of education on all of our behalf to have the average consumer understand what it is and why [it] matters.”

Fraud prevention based on consumer choice was also a hot topic during the webinar, with Devesetti highlighting the importance of consent (or co-creation) between consumers and financial institutions.

“Consumers love when they have control. Consent is very critical, and [Experian] built something called a permission hub,” he added.

“Consumers can manage [their] experience — how they’re sharing and how they’re working with banking or payments. They have those choices.”

Advance.AI partners with FinScore

Digital identity verification firm Advance.AI has entered a new strategic data partnership with FinScore, a credit scoring company.

The ensuing collaboration will support financial inclusion and access to the unbanked and underbanked customers in the Philippines and wider Southeast Asia.

From a technical standpoint, Advance.AI will see its credit profiling and risk management capabilities reinforced via FinScore’s digital tools.

“We’re excited to have FinScore as one of our data partners in the Philippines, to accelerate a digitally empowered and financially inclusive Philippines, as well as broader Southeast Asia,” comments the company’s CEO Michael Calma.

“This is even more important post-COVID, when the banking and financial services industry needs to digitally onboard and manage the risk profile of their customers quickly, easily and accurately.”

The FinScore partnership comes months after Advance.AI joined forces with Mastercard’s recently-acquired business transaction and fraud detection company Ekata, which followed on the heels of a $200 million fundraise by Advance.AI to support the expansion of its biometric fraud prevention technology to new markets.

BancoEstado selects Entrust for cloud authentication, payment card issuance

Mobile authentication expert Entrust has been selected by BancoEstado to move its mobile and online banking services in Chile to the cloud.

The bank currently counts approximately 14 million customers across its 500 branches, and issues between 20,000 and 24,000 payment cards per day. At the time of writing, the bank also claims to have more than seven million users on its mobile app.

BancoEstado adopted Entrust Identity as a Service (IDaaS) to migrate authentication for 6.5 million mobile banking customers from an on-premise solution to the cloud.

“With such a large and growing operation, BancoEstado had a vision to move its operations to the cloud to achieve more scalability, security and simplicity,” says Entrust Senior Vice President and General Manager for Instant Issuance Tony Ball.

Pindrop executive on password, KBA persistence

Joint research from Pindrop and PYMNTS shows that customers attempting to access financial accounts over the phone are often still being asked knowledge-based authentication (KBA) questions, even though the legitimate account owner does not know the answers 12 percent of the time.

Pindrop CEO Vijay Balasubramaniyan calls this “security theater,” and traces its cause back to the impression, encouraged in consumers, that inconvenience is necessary for security.

Even worse, another 12 percent do not perform customer identity verification at all, according to the survey.

When exposed to advanced digital ID verification methods, 57 percent say they prefer to adopt them, the joint research shows. The number interested in biometric authentication through voice and behavior when asked if they would like to opt in also grew from 60 percent prior to the pandemic to 79 percent.

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