Authentication and the FFIEC: Business Customers Choose Biometrics

Oct 24, 2012

Authentication and the FFIEC: Business Customers Choose Biometrics


Javelin Evaluates Customers’ Preferences and Functionalities of Authentication Methods

San Francisco, CA, October 24, 2012 – Financial institutions (FIs) are challenged to determine the best authentication strategies that meet both consumer preferences and the recent FFIEC regulatory requirements for internet banking security. Javelin Strategy & Research’s latest authentication report examines the experience and perceptions of customers with a range of authentication methods. Of business bank account owners, 50% are more likely to consider robust identity verification methods to be very compelling or extremely compelling factors in choosing a new FI. Robust authentication can be an acquisition strategy for FIs to attract business customers, who increase their online banking activities when presented with strong and effective authentication solutions.

Despite limited mention of biometrics in the recent FFIEC Supplement to Authentication in an Internet Banking Environment ,Javelin predicts that FIs will begin deploying biometric technology in 2013 to authenticate their internet banking customers. Javelin’s report examines the relative effectiveness, ease of use, and costs of authentication solutions to help FIs determine the optimal layered security strategies that meet consumers’ needs.

“Voice and facial recognition will be the long-term biometric winners,” said Alphonse Pascual, Industry Analyst, Security, Risk and Fraud at Javelin. “Voice will launch first, as it’s more mature and easier to implement in the financial services industry, especially in the mobile banking channel. FIs can easily layer voice biometrics with other authentication methods to make them more robust than they are as stand-alone authentication measures.”

Javelin’s Banking Authentication and the FFIEC: Business Customers Crave Biometrics evaluates consumers’ preferences and issues with different authentication methods and provides FIs with insight into how to achieve balance between optimizing security and consumer satisfaction. It is based on the recent FFIEC Supplement to Authentication in an Internet Banking Environment. The report includes data from 10 online surveys and contains 44 pages and 15 graphs.

Learn More: Banking Authentication and the FFIEC: Business Customers Crave Biometrics

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About Javelin Strategy & Research
Javelin Strategy & Research provides strategic insights into customer transactions, increasing sustainable profits for financial institutions, government, payments companies, merchants and other technology providers. Javelin’s independent insights result from a uniquely rigorous three-dimensional research process that assesses customers, providers, and the transactions ecosystem.

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