Digital Banking Security: Biometrics Move Centre Stage

© Mapa Research November 2015

Digital Banking Security: Biometrics Move Centre Stage

© Mapa Research December 2015

Objectives & MethodologyA

Objectives

Developments in digital over the last decade have completely changed the way that customers interact with banks. These developments provide a huge opportunity for retail banks but they also pose a significant risk. Customers today expect instant access to all banking activities across all channels, and retail banks have a major challenge in finding the right balance between broadening available functionality and dealing with related security threats.

Key objectives of the research were to provide an overview of trends and developments emerging in digital banking security over the last 12 months. We also highlight stand-out innovation and developments aimed at enhancing security, and which also offer both increased online functionality, and a reduction in pain points.

Finally, we pick out some forward-looking and inspirational concepts, particularly in the biometrics space. This report can be used to feed into your internal planning processes by providing a stategic understanding of what is happening in the marketplace.

Methodology

We have conducted research using our portfolio of live bank accounts. We have also conducted desk research to uncover other initiatives of interest and insights relevant to digital banking security. Our findings are summarised in this report, providing in-depth insight into emerging trends and stand-out initiatives from banks from across the globe.

Areas covered

Chapter 1: We look at developments in biometric authentication solutions in digital banking over the last 12 months, as well as exploring what lies ahead for the industry.

Chapter 2: We highlight innovative approaches that banks are rolling out in an effort to tighten security while offering customers both a wider range of functionality and a frictionless online experience.

Chapter 3: We conduct deep dives into three security apps from within the banking industry, as well as one non-FS app.

Finally, we summarise and report our conclusions.

What’s next?Please make sure to look at the list of reports from the

Mapa Insight Series (see end of this report).

Next Report: “Things Digital Banking Should Do In

2016”


Sample Slides


Listen to my voice and you will know who I am

I want to get to know your voice. Press the button and say the sentence below:

Biometric Authentication Solutions: Face and Voice Biometrics

More insight: http://bit.ly/1DNWdaM• Over 100,000 ING Netherlands customers already use ‘INGE’ to do tasks such as check their bank balance or issue payments

within the app. • Customer feedback has been used to further develop the functions of the voice banking functionality.• Natural language understanding (NLU) technology is used to enable mobile voice banking in the ING mobile banking app.

Example of voice biometric implementation by another bank :This year, Canadian bank - Tangerine, also introduced voice authentication services for login to its mobile banking app using the speech recognition technology by Nuance which is also used by USAA and ING. The bank is also testing facial recognition technology for it’s mobile app.

1

ING (NL) launched INGE, its voice banking feature, to the mobile app in October 2014. Initially, the feature was used for navigation within the mobile app but following an app update this year, the voice banking functionality has been further developed to include voice recognition for verification. The bank also offers Touch ID as an alternative way to log in.

http://bit.ly/1DNWdaM


Danske Bank (SE) launched a feature earlier this year which allows customers to apply a regional block for their debit and credit cards. For existing cards, the customer needs to activate the regional block in online banking or within the mobile banking app. For all new cards, the regional block is activated automatically.

Customers can choose whether they would like a particular region to be open, blocked, or opened for a limited time, for example for trips abroad. There is also an option to block/unblock the card for online purchases.

Other Security Tools: Card / Account Freeze2


In the first commercial roll-out of its kind, BBVA Bancomer (MX) launched their Dynamic Code Verification, enabled by Gemalto's dynamic CVV/CVC solution. The tool is a new feature of BBVA Bancomer's mobile wallet application, which replaces static 3-digit codes on their virtual cards with a time-based dynamic CVV code unique to each individual transaction, protecting against Card-Not-Present (CNP) fraud. The mobile wallet securely creates and digitally stores banking card-related data on the customer's mobile device.

Other Security Tools: Card Fraud1

How does the Dynamic Code Verification work?

It offers a secure cryptogram that changes every 20 minutes, bringing customers an easy and secure online experience. The dynamic CVV/CVC solution is available in both mobile and card formats. The mobile offering is unique to Gemalto.

User statistics:

BBVA Bancomer announced that in the first weeks of the project, the bank already has more than 100,000 active users.


Mapa Insight Series: Report Schedule 2015


Mapa Insight Series: Report Schedule 2015

1. Tablet Banking Series: A deep diveinto five standout initiativesPublished: February

2. SME Banking: How to win share throughsuccessful differentiation Published: March

3. Mobile Banking Series: How to successfully implement increased app functionality Published: April

4. Bank Disruption: Assessing the Disruptive Threat in Retail BankingPublished: May

5. PFM Insight Series: Building Mobile PFM With Mass Market Appeal Published: July

6. Mobile Sales: Leveraging Sales Opportunities in Mobile Browsers and Apps Published: August

7. The Digital Branch: Integrating technology and innovation to re-imagine the traditional bank Published: September

8. The Promise Of Wearables: An Internet Of Things In Banking Published: October

9. An Engagement Banking Master Class Due: November

10. Digital Banking Security: Biometrics Move Centre Stage Published: December

11. Ten Things Digital Teams Should Do In 2016Due: January


Contact Details

Author

Katie NachshonResearch [email protected]

Mapa Research HQ4th floor 101-102 Turnmill streetLondonEC1M 5QP

Tel: +44 207 566 3940www.maparesearch.com

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Meaghan JohnsonAssociate Director, [email protected]

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Management

Mark PavanManaging [email protected]

Chris GuerinBusiness Development [email protected]

Jane CollinsGeneral [email protected]

Ross MethvenDirector of Client [email protected]

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Digital Banking Security: Biometrics Move Centre Stage

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