OneSpan CEO Scott Clements

There is growing tension between the goals of improving security, reducing fraud and enhancing the digital customer experience among US financial institutions, a report has revealed.
The Future of Adaptive Authentication in the Financial Industry is a report prepared by the Information Security Media Group for OneSpan, a developer of software for trusted identities. It showed that 96% of US banks and financial institutions still rely on legacy processes tied to username and passwords for authentication, while 44% have too many disparate tools, which are challenging to coordinate effectively. A further 44% are challenged by the use of legitimate credentials exposed in data breaches and social engineering schemes in account takeover attempts. As a result of these challenges, more than 60% of respondents plan to invest in new multifactor authentication technologies in 2019, including those that rely on biometrics, AI and machine learning.
“The report’s findings echo what we are seeing with our customers,” said OneSpan CEO Scott Clements. “Financial institutions are under pressure to improve their defenses against continuing and evolving threat vectors. Many are now choosing innovative technologies that dynamically respond to attacks as part of a layered security approach that stops fraud while improving the customer experience.”
The report features Aite Group’s Retail Banking and Payments Research Director, Julie Conroy, on the need for financial institutions to improve authentication methods using the latest authentication methods and technologies, including artificial intelligence, machine learning and behavioral biometrics. These emerging technologies, paired with digital identity technologies, provide a better customer experience and help financial institutions remain competitive.

by Guy Matthews
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