There has never been a better time to enter the banking industry. Modern technologies have made banking a simple and entertaining experience. However, the competition has grown tougher. Customers have an increased appetite for engaging digital products that seamlessly fit into their daily lives.
\nBut this also means not neglecting the cyber security threat that customers are constantly vulnerable to. Multi-factor authentication is one solution to keep the trust of their customers intact. Adding IVR into the mix can further help the banking industry deal with the new technical challenges they face on the digital front.
\nMulti-factor authentication (MFA) is gaining huge popularity globally after banks and other financial institutes started implementing it to prevent cyber frauds.
\nMFA provides a second level of credentials after a user logs in successfully with their credentials. This second-level validation requires either a one-time password or a soft token or a hard token. It increases the security of the users' data. If the token is lost, the user can still access their accounts by generating a new one.
\nBased on this fact, the chances of theft reduce to a great extent if MFA is employed for user authentication.
\nInteractive Voice Response (IVR) is a type of call management system that enables your business to receive calls through different channels such as online, email, or fax and offers services in real-time.
\nAs traditional phone systems are losing their importance in today’s world of smartphones and the internet, more and more banks look forward to an IVR system for its convenience and effectiveness in conducting communication.
\nWhen it comes to providing a secure environment for your customers you can’t leave anything to chance. There are a number of very important technologies that, when used properly, will help ensure that your customers’ data is not at risk. Some of these technologies include multi-factor authentication and an Interactive Voice Response (IVR) system.
\nThe following will give you a detailed insight into the different roles of MFA and IVR systems.
\nA constant threat to credential harvesting has led to the adoption of multi-factor authentication, providing an extra layer of security to its users. A weak or stolen password can have consequences on the organization and customer's trust. Thus, using multiple weighted factors can prevent hackers' access to confidential data. These factors could be, using passwords and phone to log into an account.
\nWith the introduction of work-from-home arrangements, the workplace of different users varies. Thus to cater to the needs of more complex requests, adaptive multi-factor authentication is here.
\nAdaptive Authentication is a method to send notifications or prompt the consumers to complete an additional step(s) to verify their identities when the authentication request is deemed malicious according to your organization's security policy.
\nFor example, a user wants to access a company's data. He is sitting in a coffee shop and operating via an unsecured WiFi, then MFA would ask for additional verification data to ensure a secured network.
\nFor example, if a customer wants to know about the procedure to open a bank account, he can get the related information by clicking on telephonic numbers. On detection of any fraudulent transaction, a notification is sent immediately to the concerned customer. However, a message is sufficient to inform the customer about fraudulent activity. But an IVR enables the customer to directly have a conversation with the bank's agent and take necessary steps. In case of a lost, damaged, or stolen card, the user can immediately report via IVR. There is no need to call the customer care number and wait for an agent. With a simple click, you can register your problem or block the card in your preferred language. IVR is an excellent way of conducting surveys and collecting necessary data for further improvement in different policies. Moreover, bank authorities can keep an eye on their employees by asking their customers about their experience in interaction with the company's agent. The use of technology in various ways has been a great factor in accelerating the growth of many sectors. These have resulted in the enhancement of product quality, improvement of delivery time, and reduction in costs. The banking sector is one sector that utilizes technology to add value to both its members and other commercial businesses. Customers must feel and be sure that the bank's employees only can access their accounts and personal data. First-and second-factor authentication is now being replaced by newer technologies, specifically multi-factor authentication. This greater level of protection is gaining popularity in the wake of the growing threat of information theft and identity theft due to cyber-attacks. In a world where rich experiences surround us on every touchpoint, consumer identity and access management (CIAM) solutions are continuously helping businesses deliver secure and seamless experiences. Whether we talk about ensuring adequate authentication and authorization or the collection of insightful consumer data, CIAM has undeniably evolved as a game-changer for diverse industries. When we consider a CIAM solution, the first thing that comes to mind is a robust identity management mechanism that can provide authentication through numerous ways, including social login, OTP and email login, etc. However, the modern CIAM is packed with endless capabilities that ensure robust authentication and eventually help businesses stay ahead of the curve. Yes, the latest trends in digital identity experiences can transform a business by thriving productivity coupled with another stringent layer of security. Let’s look at some CIAM trends that have revolutionized the IAM market and how businesses can leverage the next generation of consumer identity and access management solutions. Yes, you heard it correctly. Passwordless authentication is the future of delivering a flawless user experience backed with robust security. So, why is passwordless authentication so important? It’s pretty simple. Passwords are just too easy to guess, hack, or intercept. What’s more, the legacy of password reuse is leading to constant attacks and account vulnerabilities. A passwordless authentication system swaps the use of a traditional password with more certain factors. These extra-security methods may include a magic link, fingerprint, PIN, or a secret token delivered via email or text message. Passwordless Login with Magic Link or OTP feature by LoginRadius gets authentication right by hitting all the right chords—streaming consumer experience, enhancing account security, and improving adaptive safety (to name a few). Just like multi-factor authentication, adaptive authentication also verifies an identity but eventually considers certain security risk factors. Adaptive Authentication (also known as Risk-based Authentication) is a method to send notifications or prompt the consumers to complete an additional step(s) to verify their identities when the authentication request is deemed malicious according to your organization's security policy. In a nutshell, Adaptive Authentication analyzes the user interaction with your application and intelligently builds a risk profile based on the consumer behavior or your organization's security policy. The LoginRadius CIAM delivers the highest level of security through a stringent RBA (risk-based authentication) mechanism that’s on the verge of becoming an industry standard. Decentralized authentication simply means that there is no central authority to verify your identity, i.e., decentralized identifiers. DIDs (Decentralized Identifiers) are a particular identifier that allows for decentralized, verified digital identification. A DID any subject identified by the DID's controller (e.g., a person, organization, thing, data model, abstract entity, etc.). DIDs, unlike traditional federated identifiers, are designed to be independent of centralized registries, identity providers, and certificate authorities. Businesses and industries that understand and capture the possibility to apply rising standardized decentralized identification technology for client identification control will create a long-time period of aggressive gain. It permits them to leapfrog the opposition and preserve their lead some distance into the future. The shortcomings of the current cybersecurity system that can be quickly analyzed by hackers that are always on a hunt for finding loopholes can be fixed by implementing a zero-trust security model across the entire network. Zero trust can be defined as the security concept based on a belief that enterprises shouldn’t automatically trust any device or individual, whether inside or outside its perimeters, and should strictly verify everything before granting access. In a nutshell, zero trust relies on the principle of “don’t trust anyone.” This architecture cuts all the access points until proper verification is done and trust is established. No access is provided until the system verifies the individual or device demanding access to the IP address, device, or storage. This strategic initiative helps prevent data breaches as the concept of trusting anyone is eliminated, even if the access request is from within the network. Security experts now firmly believe that the conventional security approach is good for nothing, especially in a world where most data breaches are caused by bypassing the corporate firewalls and hackers could move inside a private network without enough resistance. Since businesses emphasize delivering personalized and rich consumer experiences, progressive disclosure paves the path for the same from the beginning of the onboarding process. Progressive disclosure is an innovative interaction design pattern that sequences information and various actions across different screens. The purpose is to enhance conversion rates by ensuring users don’t switch to competitors because they aren’t getting relevant information when they first interact with a brand. In a nutshell, progressive disclosure interaction design pattern provides a quick overview of features/content of an application that helps users make better decisions. Progressive disclosure helps build a seamless experience for users while portraying the necessary information regarding the features and capabilities of a product that helps build trust in a user in the initial yet crucial few seconds of their interaction. In other words, progressive disclosure streamlines baseline experience as it hides details from users until they need or ask to see them. CIAM has already reinforced businesses facing challenges related to consumer onboarding, secure authentication processes, and poor user experiences. However, the next generation of CIAM solutions like LoginRadius has eventually raised the bar and offers the highest level of security, seamless onboarding, and user-friendly experiences. If you wish to learn more about the cutting-edge features of LoginRadius through a personalized demo, reach out to our support team now. 5. Sends immediate fraud notification
\n6. Easy registration of an immediate report
\n7. Surveys
\n#1. Passwordless Authentication
\n#2. Adaptive Authentication (Risk-based Authentication)
\n#3. Decentralized Authentication
\n#4. Zero Trust Security
\n#5. Progressive Disclosure
\nFinal Thoughts
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