Report: 80% of fintech executives worry about authentication security tools

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According to an industry survey conducted by the biometric authentication provider authID.ai in collaboration with Market measurement, 80% of fintech decision makers have moderate to high levels of concern about the risks associated with legacy identity authentication options. Three-quarters of executives also expressed at least a moderate degree of concern about potential customer dissatisfaction with one-time password (OTP) and questions about knowledge-based authentication (KBA).

Legacy IT security tools have vulnerabilities that can be exploited, including the seizure of SMS PIN codes by cybercriminals or theft of fraudulent accounts using easy-to-guess security instructions.

Despite executives’ concerns about these tools, fewer than a quarter (22%) of respondents currently use an alternative system, such as facial biometric identity authentication. However, it is significant that the majority of respondents (70%) consider switching to this alternative in the next year. In fact, in the next 12 months, 75% of respondents said they wanted to increase their investments in IT security, including identity authentication.

Graphic.  Fintech Security Report 2021. Over 100 fintech executives were interviewed during Money 20/20 USA on attitudes towards identity authentication technologies.  84% plan to increase their IT security investments in the next year.  70% are highly or in some way inclined to consider facial biometric identity authentication as an alternative to OTP / KBA applications over the next year.

These findings signal an emerging trend for new corporate security solutions, Included biometric, as institutions seek to better protect their customer data and improve the customer experience in digital, often cloud-based, transactions. Given that 88% of respondents said they are familiar with facial biometrics, also called “facial matching”, it is highly likely that this security solution will play an increasing role in identity authentication transactions in financial institutions, technology of personal consumers and more.

Over a two-day period, to coincide with the US fintech Money 20/20 industry conference, the company interviewed 113 senior fintech executives in roles spanning management, sales / marketing and information technology to understand their concerns and familiarities. with legacy identity authentication solutions and their contemporary alternatives.

Read the full report from authID.ai and Market Measurement.

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