3 Benefits of a Frictionless and Secure Digital Banking Experience
Over the past decade the banking and finance industry has experienced a monumental shift that brought both unique challenges and opportunities for institutions all over the world. Fast forward to today one thing is apparent – banks that choose to maintain the status quo simply will not be able to compete in a digitally accelerated landscape.
“It is not necessary to change. Your servival is not mandatory.”
– W. Edwards Deming
The move to digital adoption has impacted financial services in all areas – users simply don’t choose a bank because of its fiscal and social status but also look for an institution that offers a simple and intuitive customer experience with embedded security that protects them from malicious actors. To compete, banks need innovate, collaborate with internal and external constituents, and increase their focus on providing a superior and differentiated experience to their customers.
“In this new environment, understanding the Digital Experience that your Customers expect is critical. Not just to your success, but to your Survival”
– Brian Solis, Altimeter Group
The need for frictionless banking experience
Despite ongoing improvements in mobile banking experiences, customers still face on-going challenges. For example, to access a bank account, a customer still needs to remember a PIN, a password or details to authenticate the transaction. Furthermore, to provide better security banking institutions have enabled multi-factor authentication for their customers. This adds more friction in the overall experience and often leads to abandonment.
Precisely why frictionless banking is quickly becoming the defacto standard. As the name suggests, it’s about providing a seamless and secure login experience by using verification features other than PIN, passcodes, and passwords. With advancements in technologies and mobile devices using biometric (thumb print and / or facial recognition) and passwordless login options, customers are demanding simple and secure experiences that you can now functionally deliver on.
The top 3 benefits of a frictionless and secure digital banking experience
- Retaining and attracting customers: Frictionless banking is redefining the banking experience for customers. It will plays an important role in retaining old customers and attracting new ones. With a simple and secure way to conduct transactions, they will come back to the bank time and time again. This will translate into growing customer base, an increasing number of patrons and, of course, more business for the banks.
- Reducing fraud: With cyberattacks targeting financial services firms 300 times more than other businesses, according to a report from Boston Consulting Group, a secure and seamless banking experience using modern login options reduces digital fraud such as phishing attacks, credential stuffing attacks, and other monetary losses. Frictionless banking makes banking safer and more secure.
- Reducing operational cost: A study by the Gartner Group found that between 20-50% of all service desk calls were for performing password resets. Forester underscores this with research showing the average help desk labor cost for a single password costing upwards of $70 or more. Embracing passwordless login reduces the cost of infrastructure and the man-power required to support password resets.
Creating a frictionless banking experience and the path forward.
With BlokSec’s Verifiable Identity™ services, banks can easily integrate passwordless login for their customers within hours. Verifiable Identity™ is a digital identity and digital consent service that provides provable assurance of identity and tamper-proof user activity tracking. User’s no longer have to remember passwords or type in a PIN / code for multi-factor authentication – login with Verifiable Identity™ service is as simple as unlocking a mobile device. Important transactions such as bill payments, wire-transfers, profile updates can be secured with a consent-based authorization. With standards-based API’s, banks can easily integrate into their existing services and mobile apps with customer-centric branded experience. Connect with us to enable a frictionless banking experience.
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Are you considering passwordless authentication; however, not sure if it is achievable?
If your business uses passwords, you should be considering a move to passwordless authentication. Not only is it achievable, it’s the future of information access.
Let’s explore how passwordless login can be achieved regardless of the industry / sector you are in.
No matter what industry you’re in, you’ve got to be prepared to grow and evolve over time. What worked five or ten years ago isn’t necessarily what’s best for your company now, and it’s always smart to look ahead – especially when technology is involved, and definitely if data protection is an issue.
Here are five reasons to transition your business to passwordless authentication right now.
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