Of all the topics likely to keep the Chief Risk Officers of large financial institutions awake at night, data security ranks pretty highly – and with more customer information appearing online each day, the possibility of a significant breach becomes increasingly real.
Every financial services firm wants more customer data; they want to hold more data; they want to make active use of the insights it can provide – but alongside those benefits comes an inherent risk.
Can these firms be definitively sure their money-in and money-out processes are robust; that customer information is shared securely and appropriately; and, ultimately, that they are only paying out to the right people?
If any firm isn’t one hundred percent confident in their systems and controls in any of these three areas, the costs – both financially and to a reputation – could be enormous.
The leading institutions are taking steps to protect both themselves and their customers. There are a number of different ways to approach the issue of data security, but from a customer-interaction perspective, greater use of biometric information and data passports are the key to the future.
Wide-scale biometric ID verification – use of fingerprint technology, iris scanning, and facial recognition – will add a layer of personal security yet unseen in the consumer finance sector.
With data passports, Customers will be able to access multiple services quickly and easily from a single point, while organisations will be provided with access to real-time information through which they will be able to more accurately certify an individual’s ID and combat fraud risks.
As data becomes more prevalent and vital to the smooth running of digital operations, businesses will seek to embrace every opportunity to enhance the security features around this information and customers will demand even more smart and intuitive services in return. This focus is something that will only get greater.