Financial institutions are increasingly treating onboarding, authentication, fraud detection and payments as parts of a single identity lifecycle. Rather than making decisions based only on a login or transaction, they are using behavioral, device and digital identity signals collected throughout the customer relationship to continuously assess trust.
And new research suggests that FIs must make use of those signals, as consumers are willing to switch financial institutions if they run into poor authentication experiences.
Nearly half (43 percent) of U.S. consumers surveyed by Entersekt said they would be willing to switch their financial institution based solely on the experience their authentication method delivers. Even more people say their financial institution still uses SMS one-time passwords (OTPs), but less then half of them (18.2 percent) believe that is the most secure method of authentication.