Mobile banking creates new opportunities for fraud
Threats against banks are evolving. With the shift to Open Banking and an increasing customer preference for mobile banking options, new avenues for cyber-attacks have emerged.
Open Banking, and more specifically the Payment Services Directive 2 (PSD2), is changing the way people interact with their banks. Digital onboarding and mobile banking may be great time savers for customers, yet transferring sensitive financial data digitally may open the door to fraudulent transactions. Banks understand the importance of user authentication – they refuse to share customer data without having the highest degree of certainty that the request is legitimate. In fact, in a recent Transaction Banking Survey by Ovum and Temenos, 67% of the 200 of the respondents either agreed or strongly agreed that there was a higher risk of financial crime with non-bank TPPs (third-party providers). Combatting fraudulent attempts to access customer data requires robust identity and access management solutions.
HID Global, a provider of identity solutions, and Temenos, proprietor of the T24 Transact core banking solution, have worked together for over a decade to reduce fraud in the banking and financial industries. In 2018, HID Global was the top-selling Temenos MarketPlace provider – bringing impactful identity management solutions to banks using Temenos software. In particular, Temenos’ range of financial crime mitigation range was recently positioned by Ovum and IDC as leading solutions in the market.
HID’s authentication solutions, offered through the MarketPlace, can help build a new level of trust to banks around the world, while also helping to lower costs and boost deployment time.
Easy to deploy solutions
Security breaches can be devastating for customers, while also completely shattering a bank’s reputation. Now, more than ever, authentication and identity management are critical components of the financial industry’s cybersecurity suite.
Offering HID solutions on the MarketPlace allows banks using Temenos software to launch pre-configured identity management solutions to create user credentials, manage password lock/unlock processes, track authentication events, detect threats in real-time and provide multi-factor authentication and transaction signing for customers. Banks and financial institutions can now rely on HID’s authentication solution, which can be integrated seamlessly with their software, eliminating costly and time-consuming processes such as research and testing.
The Temenos MarketPlace fosters a dynamic fintech ecosystem. Partnerships between companies are forged to bring greater security at lower costs to banks and other financial institutions. Being the top-selling Temenos MarketPlace provider shows how HID is leading the way with Temenos to make it easier for banks to stay secure in a changing digital landscape.
Providing a complete secured banking solution, compliant with the latest regulations, is continuous work, where strong partnerships like the one between HID Global and Temenos are a success factor. And adhering to regulation has never been more important for banks: historically, this was a challenge for them, as Adam Gable, Financial Crime Mitigation Product Director at Temenos highlights “2018 saw a sharp rise in fraud attack levels on mobile transactions, and financial crime in general, and regulators are now really focused on bringing banks to task on this. In Europe alone, 18 of the top 20 banks have been fined for offenses related to financial crime since the financial crisis. However, it costs the banking industry nearly USD 270 billion annually, or 10% of operating cost, to meet the demands of regulatory compliance. Much of this cost is due to poor operational efficiencies. Operational efficiency is crucial, and has been sited as a top three IT investment priority for banks in 2018, realising that it can be achieved with the right system and processes in place.”
Seamless and secure
Customers are demanding their banking experience to be seamless, secure and accurate. It ruins the customer experience if legitimate transactions are flagged as fraudulent. HID and Temenos solutions have one of the highest detection rates of known and new threats and one of the lowest false positive rates. This secures customers’ valuable financial data with minimal friction. For the banks themselves, this translates to efficiency and lower operating costs for the solution. In fact, Temenos financial crime mitigation solutions on average reduce a bank’s total cost of ownership by around 50%.
HID solutions provide frictionless risk-based authentication for the majority of financial use cases and have the capacity to step up the level of authentication in order to provide higher levels of assurance for unique instances. Currently, HID powers authentication, threat detection and biometric solutions for over 100 Temenos customers globally. “Preserving the integrity of digital business interactions by adding trust to online transactions to fight cyber-crime is exactly what our risk management solution is about,” said Solution Director FSI Markets at IAM Solutions, with HID Global. “This solution enables organisations to detect and adapt to threats in real-time, thanks to its combination of multi-factor authentication and artificial intelligence.”
Temenos recognizes the real benefit that the partnership with HID offers to their customers as Adam Gable highlights, ‘at Temenos, we focus on protecting the bank and bank’s customer from first onboarding to monitoring ongoing activity for suspicious signals such as a fraud or money laundering. Working outside the bank focusing on identity and authentication, HID’s solution is highly complementary and brings an additional layer of protection’.
Adding trust to everything
HID secure technologies protect payment infrastructure, access to buildings, and access to Internet banking portals. With expertise in physical and digital identity management, HID solutions power trusted identities to eliminate fraud across industries.
HID’s Advanced Risk Based Authentication solutions offer the widest range of authentication solutions on the market today, from digital solutions and physical chips, to smartcards, one-time password devices, and biometric hardware. HID’s full suite of identity management solutions is supported by software that enables organizations to deploy the exact authentication methods best tailored to their needs.
Learn about HID’s portfolio of authentication solutions here.