Banks Struggle With Automated Identity Verification

Banks still have a long way to go in the quest to automate identity verification, research from biometric authentication services provider iProov shows.

Research conducted with 20 or the largest retail US banks revealed overly complicated online onboarding processes which failed to capitalize on opportunities to improve security and customer experience. Close to two-thirds (65 percent) did not allow users to create an account through a mobile app, while half required three pieces of identification to open an account online. Three in four had four or more password requirements for online banking.

Those same banks are not proactively addressing fraud as much as they could be. Sixty-five percent required a customer to onboard again to secure additional services. All but one used multi-factor authentication at first login. Sixty percent did not allow a customer to submit an online request for a new debit card.

Americans clearly want that process to be smoother. During the pandemic, 43 percent conducted all of their banking online. Three out of four believe biometrics are more secure than a PIN for accessing money at a cash point, while 58 percent either already use or would use facial recognition to access their mobile banking app if that choice was available to them. The same number believe Face ID or Touch ID is secure and more than 64 percent like its speed and convenience.

Canadian banks are doing even worse, iProov discovered. Three of the top five Canadian banks do not offer online onboarding while all five do not offer account opening through a mobile app. For four of the five, onboarding takes a week. An average of seven pieces of information are required to resent an online password.

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