When it comes to banking, we know customers are looking for ease and convenience. To satisfy those demands, financial institutions are doing whatever they can to provide highly efficient and secure banking environments that allow customers to bank over a number of channels. At this point, it’s safe to say the banks that don’t already offer banking services across multiple channels have missed the boat, and will probably be playing catch up for some time.
According to the report, “The Dangers of Mobile Banking,” convenience appears to be the driving factor behind the rapid growth of mobile banking. The 2011 Customer Trends Survey released some interesting findings, including 70% of customers use their mobile devices for 24×7 banking access while 65% said it saves them time. In other words, customers want to make payments fast and on their terms, whenever they want.
While speed and convenience tops the priority list for many customers, this has created another significant challenge for banks offering new channels — security. With research firm Frost & Sullivan expecting the number of people using mobile banking services to increase from 12 million in 2009 to 45 million by 2014, it really doesn’t matter how many channels banks offer; the simple fact is financial institutions operating without a secured environment won’t be able to retain current customers or win over new ones, no matter how fast and convenient the service is.
Last year’s FFIEC supplemental guidance outlined the blueprint for the level of security that financial institutions need to combat fraud and succeed in today’s competitive banking environment. At the heart of those requirements is customer authentication. This doesn’t mean a single type of authentication solution across all channels, but multiple security tools that give all channels true multi-layered authentication, whether the customer is paying online or requesting a bank transfer over the telephone.
The TrustID® network-based Physical Caller Authentication validates the actual physical location of the landline or mobile phone calling into a bank’s call center to identify the “something you have” device, an essential component of the FFIEC’s multi-factor authentication paradigm. By invisibly validating the Caller ID and ANI before the telephone is picked up, banks can accept business from good customers faster, saving them valuable time on their banking activity. At the same time, financial institutions can secure their telephone channel by spotting spoofed calls in real time to proactively stop criminals from getting through to socially engineer contact center agents.