Outdated online security is losing banks business

New research from biometric authentication company iProov highlights that many US banks are falling short in delivering digital convenience to their customers.

The study looks at the range and usability of online services being offered to existing customers. Researchers looked at 39 data points, including how easy it was for a customer to move money, request a new debit card or change personal details online.

It finds banks are often making it hard for existing customers to access new products. 30 percent asked the researchers to complete an application process for an additional account completely from scratch, rather than using secure authentication to streamline the process.

Half of banks don't allow a PIN to be changed online and half don't allow customers to request a new debit card online. Customers were asked to visit a branch, call the bank or use an ATM to complete these requests.

"Banks no longer need to choose between security and usability when it comes to delivering an impressive online customer experience -- the technology now exists to deliver both at once," says Joe Palmer, president of iProov Inc. "Genuine Presence Assurance technology has changed the game for the financial services sector. It is now possible to verify that an online customer is the right person, a real person and that they are authenticating right now. That assurance, completed with an effortless face authentication, means that even the most secure processes can be completed online, whether it's requesting a replacement debit card, changing an address or applying for a new credit card."

Among other findings, of the two thirds of banks that offered easier access to new services, only 35 percent made it simple for the customer. The other third required some additional details before the application could be submitted.

All of the banks allowed passwords to be reset online but it was a lengthy process in some cases with two banks asking the customer to supply four or more pieces of security information (for example, a Social Security number) for this to be completed.

75 percent of banks asked for additional security verification if a customer wanted to transfer funds to an external account. Methods varied, from confirming the numbers on a debit card to making a trial deposit to the other account.

90 percent allowed the customer to update a password simply by confirming their old one. Of the others, one bank required no verification and one sent a one-time passcode. While 60 percent allowed a customer to change personal information, such as address and phone number, without additional verification beyond the initial username and password login.

"Challenger banks and other disruptors in the banking sector have recognized that customers want reassuring simplicity," adds Palmer. "They know that customers value convenience and once they've experienced it, they won't go back. With Genuine Presence Assurance, customers get the reassurance of visible authentication along with the effortlessness that they love."

You can get the full report from the iProov site.

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