Digital transformation in banking is happening now, and it’s happening quickly. In this time of rapid change, financial institutions need to transform to stay ahead of the competition. Typically, when financial institutions think about a digital transformation initiative, they think about improving the customer experience by using bots for customer service or predictive analytics to anticipate a customer’s needs. When they think about how a digital banking transformation impacts their security approach, however, they are usually faced with a tradeoff between incorporating new features and introducing new risks.
One innovative security solution is behavioral biometrics, which solves for this tradeoff and empowers businesses to future-proof their systems against ever-evolving cyberattacks, streamline existing processes, and improve the customer experience. By taking measurements of users’ unique ways of holding devices, typing, and navigating web pages and mobile applications, behavioral biometrics solutions develop profiles for individuals that are used to detect a wide range of human and non-human cybersecurity threats. These solutions run in the background of online user sessions and provide a secure, frictionless approach to protecting consumers. Let’s take a look at the top three reasons to consider implementing behavioral biometrics as part of your digital banking transformation efforts.
1: Enhance consumer trust with a transformative technology solution
The security approaches currently employed by most financial institutions are not up to the task of protecting customers – and it is taking a toll on consumer trust that their personal data is protected. With over 5 million records compromised every day,i Personally Identifiable Information (PII) is constantly being exposed. Even when a financial institution itself is not at fault, any sort of data breach that can be traced back to it is a serious blow to the institution’s reputation. As hacker schemes become increasingly sophisticated, banks must move beyond current forms of security to truly win their customers’ trust by more effectively safeguarding their data and securing their assets.
Behavioral biometrics, enables financial institutions to move past outdated methods of verifying identities and compile truly unique identity profiles for each of their customers based on information that can never be lost, stolen, or copied. The technology enables institutions to prevent identity theft and account takeovers by measuring how information is entered instead of what information is entered. When this is inconsistent with how the customer enters that information, it is enough to stop fraudulent activity from going through. Continuous authentication capabilities also enable banks to detect and prevent fraudulent activity that occurs after login as well, providing additional security beyond just a log-in checkpoint. Not only does this enhanced security approach give institutions a foundation for rebuilding consumer trust, it also drastically cuts costs and enhances operational efficiency.
2: Streamline operations and cut costs with automated and accurate security
Traditional cybersecurity approaches cost companies a lot of money every year. A large portion of this is due to false alerts and false positives, which each organization spends on average nearly 21,000 hours and $1.3 million each year analyzing.ii BioCatch’s behavioral biometrics solution detects anomalies and suspicious behaviors with a much higher degree of accuracy and an extremely low rate of false positives as compared to legacy systems,iii enabling companies to automatically stop fraudulent activities with minimal human oversight and disruption to the user experience.
This increased security leads to major cost reductions for financial institutions. The higher accuracy in fraud detection means lower costs associated with false positives, which account for 40% of alerts from traditional cybersecurity systems.iv Minimizing false alarms and maximizing the automated detection and prevention of real fraud reduces operational costs associated with existing inefficient processes while improving the user experience.
3: Increase customer satisfaction with a frictionless experience
Behavioral biometrics run in the background of apps and websites, ensuring an uninterrupted customer experience. Accounts are continuously validated through how people navigate on and use their devices. These behaviors are automatic and seamless for customers, enabling them to validate their identity with no extra effort—as opposed to providing additional personal information.
Leveraging a behavioral biometrics solution results in significantly fewer false positives than traditional security systems, benefitting both customers and financial institutions. When false positive authentication failures do occur, customers often get frustrated and call a customer service center. These calls cost about $4.00 each,v which adds up quickly when traditional security systems have a 40% false positive rate.vi Behavioral biometrics save banks a tremendous amount of money while drastically improving the customer experience with seamless, frictionless identity proofing that demands less from customers while minimizing their frustration.
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BioCatch, built on Microsoft Cloud technology, empowers financial institutions to keep customers’ data secure while maintaining an excellent customer experience. The solution quickly delivers a high return on investment with tangible, powerful results. One leading Brazilian bank with over 6 million customers saved over $24 million annually in fraud reduction with BioCatch.
Learn more about how BioCatch can help position you for the future and try the solution today on Microsoft AppSource.
i Breach Level Index, http://breachlevelindex.com/, 2017
ii Ponemon Institute, 2015
iii BioCatch, https://www.biocatch.com/continuous-authentication-solutions
iv Ponemon Institute, 2016
v BioCatch, https://www.biocatch.com/blog/the-roi-of-behavioral-biometrics
vi Ponemon Institute, 2016