As breaches and privacy woes mount, digital ID becomes an imperative
Financial organizations are in a constant state of disruption in the current digital and business landscape.
According to PwC’s recent financial services 2020 report, customers expect financial organizations to deliver the same predictive, frictionless service that fits their digital lifestyle and accessible from any device, similar to experiences with Amazon.
However, customers also expect organizations to deliver this service while addressing individual security and privacy concerns. Recent data breaches from financial services companies including First American Corporation’s breach of 885 million records have raised the following questions from consumers: What companies do you trust your data with? How much information do you provide to those companies? Do you know how, or if, that company is securing your data? Do you know how much that company knows about you?
Besides ensuring the security of its customers’ financial information, a financial services organization must also adhere to global data privacy laws including General Data Privacy Regulation (GDPR) and the soon-to-be-enacted California Consumer Privacy Act (CCPA). We have already seen litigations against First American Corporation for its data breach this year, and more recently, British Airways was fined $230 million by British authorities for its 2018 data breach of 500,000 customers’ information.
In PwC’s Global CEO Survey, 69% of financial services’ CEOs reported that they are concerned about cyber-threats. The PII needed by financial institutions to verify customers’ identities and to offer the better, more personalized experiences that customers demand can lead to several negative implications if it falls into the wrong hands. The info allows hackers to open credit cards or take out loans, intercept tax refunds, use victims’ info to cover medical treatment and even open utility accounts. Worst of all, the compromised data can be used for many types of modern attacks against other organizations, putting even more data and systems at risk.
To address users’ privacy concerns, secure data and avoid litigation or fines while delivering a competitive customer experience, financial institutions must adopt a customer digital identity and access management (CIAM) strategy. CIAM utilizes adaptive security intelligence to enable financial organizations to: Secure the identities of customers, devices, services and connected things; leverage standards based multi-factor authentication (MFA) and offer data-driven insight to allow businesses to continuously improve; measure user login analytics, user interactions and devices used across services and applications.
By consistently monitoring customer behavior with the appropriate levels of user consent, financial institutions will obtain a competitive edge by enhancing the user experience while increasing their overall security and privacy. Financial services organizations will also enable a higher level of trust and great customer loyalty from their users by addressing privacy concerns and adhering to regulations demanded by global data privacy laws.