Author: Simon Cadbury
The topic of data security and fraud in the banking industry has sparked much conversation over the last couple of years. In part thanks to a rising number of very public cyber-attacks on big consumer brands such as Yahoo! and TalkTalk, consumers are increasingly aware of the need for sophisticated personal protection when it comes to keeping their data safe.
It seems however, that consumers aren’t yet totally satisfied with their financial institutions’ security offering. According to our research, over a quarter (26 per cent) of British consumers think their bank could do more to protect their data from hackers and online fraudsters. It seems they believe that biometric authentication is the way forward for banking security, with almost half (45 per cent) asking for biometric tools to access their bank accounts.
Customers are clearly factoring in such measures when shopping around for a new bank account, as over a third (37 per cent) say that security has become a deciding factor when choosing who to bank with, and nearly a third (29 per cent) say they would be more likely to use a bank that offers biometric authentication in their digital banking solutions. With such obvious consumer demand, banks need to ensure they invest time, money and energy into ensuring they have the most up-to-date security software, keeping consumers’ minds at rest that their data is safe.Security has become a deciding factor when choosing who to bank with Click To Tweet
Our 2016 Future Password Index (FPI) reveals that demand for biometric authentication has soared since 2014, with iris scanning technology almost doubling in popularity in two years. Meanwhile, other technologies such as facial recognition, heartbeat monitors and voice verification have also increased in popularity. Additionally, vein verification technology has made a new appearance in the table, which was added to the list following Barclays’ announcement in late 2014 that it would be introducing the authentication method to customers, with 37 per cent of consumers currently saying they would consider using it.
Despite the clear consumer demand however, banks have been relatively slow in adopting biometric authentication. Considering the range of technologies available, banks should be looking to offer sophisticated biometric technologies to retain and attract new customers. Over the coming decade, biometrics, and security more broadly, will undoubtedly become a key battleground within the banking industry where we are likely to see some of the more innovative banks steal a march on their rivals.