Guidelines for Securing Trust, Elevating Experience: CIAM’s Role in MEA Banking Revolution

Temenos – Company

Known as “everyone’s banking platform”, Temenos makes banking possible for 1.2 billion people worldwide. That amounts to 30 percent of the world’s banked population. With its passion for making banking better, it has become the banking platform of choice across multiple industries — for large and small banks, for non-banks and fintechs, for partners and developers, and many more. Through its partnership with Nevis, Temenos Customers can now access the benefits of Temenos’ core banking secured with Nevis’ strong authentication and fraud prevention capabilities.

As the top provider of CIAM (Customer Identity and Access Management) in Switzerland, for over 25 years, Nevis has built a reputation of trust with public authorities worldwide, as well as leading service and industrial companies. CIAM has the potential to significantly benefit the banking world in the Middle East and Africa (MEA) region, thereby enhancing customer experiences, security, and operational efficiency. With Temenos’ proven track record and Nevis’ cutting-edge security, the partnership is set to revolutionize banking in MEA. Here’s a look at the challenges being faced and how CIAM can help.

Specific Local Challenges Faced by Financial Institutions in MEA

Digital Literacy: In some parts of MEA, there might be a need to address a digital literacy deficiency and lack of familiarity with online banking platforms.
Solution: Banks will have to invest in user-friendly interfaces and provide education and training to customers to overcome this challenge.

Trust and Security Concerns: Hand in hand with digital literacy, some customers in MEA might have concerns about the security and privacy of their data when using digital channels.
Solution: Banks must build trust by implementing robust security measures, communicating transparently about data usage, and addressing customer concerns.

Connectivity and Infrastructure: While access to the internet and digital infrastructure has seen tremendous improvement in MEA, there are still areas that experience limited connectivity.
Solution: Banks should consider providing offline banking options and optimizing applications for low-bandwidth environments.

Data Localization Requirements: Some countries in MEA have data localization laws that mandate customer data be stored within their borders.
Solution: Banks operating in multiple countries must navigate these regulations in order to ensure data security and compliance.

Global Hurdles for Online Financial Service Providers that Are Compounded in MEA

Fraud: The rapid adoption of digital banking and e-commerce in the MEA region, has given cybercriminals new avenues for perpetrating fraud, including phishing, online scams, and identity theft. Scammers often turn to social engineering tactics to manipulate individuals into disclosing confidential information, such as login credentials or personal data, which can then be used for fraudulent purposes. Coupled with the lack of digital literacy and the fact that some banks and customers in MEA might have insufficient cybersecurity measures in place, it is potentially easier for criminals to exploit vulnerabilities and gain unauthorized access to sensitive information.

Solution: Banks will have to raise awareness and provide education to customers and employees about fraud risks and best practices to create a more secure financial environment in the region.

Money Laundering: A cash-intensive economy, extensive cross-border trade and remittances, and the prevalence of informal or non-regulated banking systems (such as Hawala or Hundi, which are intricate money transfer systems that circumnavigates established financial institutions) in MEA may make it difficult for banks to track the flow of funds and verifying the legitimacy of transactions. Along with less stringent and inadequately enforced anti-money laundering regulatory and legal frameworks in some MEA countries, there is a higher risk of illicit funds moving through the financial system undetected.

Solution: Banks and financial institutions must therefore prioritize the implementation of robust cybersecurity measures, conduct thorough customer due diligence, monitor transactions for suspicious activities, and comply with relevant AML regulations and reporting requirements.

How Temenos and Nevis’ CIAM Solution Can Boost the Banking Industry in MEA and Resolve Many of Its Challenges

  • Enhanced Customer Experience: CIAM enables a seamless and personalized customer journey across various banking channels, such as mobile apps, net banking, and in-person services. By leveraging CIAM, banks in MEA can offer a unified and consistent experience, which will ultimately lead to greater customer satisfaction and boost loyalty.

  • Improved Security: CIAM solutions utilize robust authentication and authorization mechanisms, including multi-factor authentication (MFA), single sign-on (SSO), and biometric verification. This enhances security and protects customer data, which in turn reduces the risk of cyberattacks and data breaches.

  • Financial Inclusion: Regarding the diversity of MEA and the varying levels of digital literacy and access to banking services, CIAM can play a crucial role in enabling financial inclusion by providing user-friendly and accessible banking experiences, even for customers in remote or underserved areas.

  • Streamlined Compliance: CIAM solutions help banks in MEA comply with both local and international data protection and privacy regulations, such as the General Data Protection Regulation (GDPR). By implementing CIAM, banks can efficiently manage customer consent, data access, and preferences to ensure compliance with ever-evolving regulations.

  • Fraud Prevention: CIAM can help detect and prevent fraudulent activities by monitoring user behavior, for example login locations and times as well as time spent on a platform or app and detecting anomalies. This information can then be used to request additional security measures, thereby helping to prevent fraudulent activities and safeguard customer accounts.

  • Reduction of Manual Processes: CIAM streamlines customer onboarding and authentication processes, thereby reducing manual interventions and paperwork. This efficiency not only saves time and resources for banks but also contributes to a smoother onboarding experience for customers.

  • Personalization and Customer Insights: CIAM allows banks to gather and analyze customer data, which can lead to valuable insights into customer preferences and behaviors. These insights can be used to deliver personalized banking services, offers, and recommendations, which results in stronger relationships with customers.

  • Omni-Channel Experience: CIAM facilitates seamless access to banking services across various devices and channels. This omni-channel approach allows customers in MEA to interact with their banks through their preferred platforms both flexibility and conveniently.

In a rapidly evolving world where digitalization has become the new norm, it is critical for banks in MEA to adapt and keep up with technological advancements. Temenos’ partnership with Nevis and its incorporation of CIAM in its digital banking solutions is a much-needed step towards achieving this. As highlighted throughout this post, CIAM has the potential to address many challenges faced by the banking industry in MEA – from enhancing customer experiences and security to promoting financial inclusion. With its advanced authentication and authorization mechanisms, CIAM offers a robust solution to protect customer data from cyber threats, ensuring peace of mind for both customers and banks. Furthermore, by providing a unified and seamless banking experience across channels, CIAM can boost customer satisfaction and loyalty.

So why wait? Take the first step towards revolutionizing your bank’s digital capabilities by requesting a demo of Nevis today at the Temenos Exchange. Join the ranks of other successful banks in MEA who have already embraced the power of CIAM to create a secure and personalized banking experience for their customers. It’s time to future-proof your bank with Temenos and Nevis’ cutting-edge CIAM solution.

Temenos – Company