How Banks Are Using Data To Protect Consumers' Privacy
From fingerprint and facial scanning to voice-activation log-in, banks are implementing several different personalized authentication tools to cultivate consumer trust in the institution and to ensure users that their information remains secure
As brands increasingly use data-driven models to create better, more customized user experiences, consumers worry about privacy issues. This pain point is of crucial importance in the financial services industry, where the protection of consumer data is not only preferable but an area of primary concern.
Banks now are rolling out various identification tools to cultivate consumer trust. By allowing customers to create their own security questions, use consumers’ speech and voice patterns and even use Apple’s facial recognition tool to verify their identities, brands reassure users that their information is safe. Here are three new features that financial institutions are integrating into their mobile apps to create more seamless and secure customer experiences:
Chase Bank, the international financial institution, is rolling out a voice-based authentication feature which will enable its card customers to verify their identities by the tonality of their voices. To use the integration, users connect to the bank’s call center via the app, offering them an easier, more secure way to verify their identities. As the customer speaks with the call center agent, the system registers a unique voiceprint, created using more than 100 physical and behavioral characteristics including the pitch, accent of a customer’s voice, vocal tract, and the shape of his or her mouth. Once the voiceprint is created, the call center automatically recognizes the customer when on future calls, cutting out the need for additional security questions. Ultimately, the organization’s objective with the integration of this feature is to create a more seamless consumer experience, eliminating the common pain point of having to remember multiple passwords and answer cumbersome security questions.
First National Bank
First National Bank, the U.S.-based financial institution, is rolling out banking kiosks that use biometric authentication technology, called TouchPoint, to validate a customer's identity at its locations across South Africa. By scanning one’s fingerprint on a biometric reader, TouchPoint validates a customer’s identity and can detect false fingerprints to prevent fraud. The system then verifies the customer’s identity with the Department of Home Affairs to ensure the self-service account opening complies with relevant laws. Customers who use these mini-ATMS can perform withdrawals and conduct payments transfers, purchase airtime and electricity and perform card cancellations. These machines also can be used to open new accounts.
Tesco Bank, the U.K.-based financial institution, has revamped its mobile banking app to allow iPhone X users to log in using Face ID, Apple’s facial recognition technology, giving their customers another option to easily manage their money. Once users enable the facial recognition integration, they can use it to log into the app and to authenticate transactions, such as adding a payee or completing a balance transfer.
By enabling consumers to self-authenticate their accounts in real-time, banks allow consumers to trust that their information is safe and only can be accessed through their customized authentication codes. The employment of highly-personalized security barriers is just one way that brands are improving the consumer experience—for more information, see PSFK's report Leveraging Data To Create Personalized Experiences.
Lead Image: man sitting at desk in office stock photo from Denys Prykhodov/Shutterstock