Customer identity verification has always been challenging, especially with banks and financial technology or fintech firms. These financial companies must keep their clients’ data and money safe and secure. Building a strong defense for identity verification is beneficial not only for the clients but also for protecting the financial sector. Additionally, they must ensure that only legitimate customers transact on their platforms.
For years, passwords have been the most commonly used ID authentication method. But despite the help it has provided in keeping unauthorized people from accessing someone’s account, this authentication method is still weak and vulnerable to hackers.
As time progressed, technological advancements were made, allowing different systems, such as multi-factor authentication (MFA), to support passwords. MFA combinations like passwords plus email or passwords plus SMS were widely used. However, passwords remain one of the weakest identity verification protocols due to SIM swapping scams and hackers. Eventually, the continuous evolution of the digital industry has paved the way for the improvement of authentication processes and security measures. One of which is the FIDO2 authentication.
This stronger and more secure verification system uses a combination of more robust authentication factors such as biometrics and cryptographic keys. This security protocol is now possible given that many iOS and Android mobile devices have built-in support for biometrics such as facial and fingerprint recognition. These upgraded identity verification methods have made logging in quicker, more seamless, and more reliable than passwords. By implementing passwordless authentication, digital banks can be more protected and less susceptible to scams and fraudulent activities.
With the persistent threats in the financial sector and the growing demand from consumers and technological updates, banking firms must abdicate their password-reliant systems and adapt to more robust identity verification protocols. With that in mind, this infographic from authID provides a detailed explanation of the advantages of passwordless login.