Karen Webster and Socure’s Ken Allen hosted a digital discussion recently about how the payments and financial service providers should manage the digital identity crisis facing them and reliably authenticate consumers. One framework and 4 pillars later, they offered an approach that might help the ecosystem reconnect with its authentication ego-id-superego.
The smartest organizations are taking a layered approach to consumer decisioning, by separating identity verification from credit determination. Big Data enables them to blend intelligence with conventional offline data for hyper-informed decisions, in a way that doesn’t cut corners on the best security practices. (PODCAST)
Acquiring that financial health means financial institutions are able to not only know, but accurately identify, their customers.
But for many financial institutions, the use of credit as a determining factor on whether to provide access to banking products or not transforms the decision from one based on identity to one based on credit – a choice that can subsequently lock millions out of the financial world.
Fraudsters are taking advantage of the fact that identity verification, in large part, is stuck in the past, relying on static variables that are easily (mis-) appropriated. With so much information about individuals available online, why aren’t more verification systems utilizing that wealth of data to create a fuller picture of consumers’ behaviors, in order to protect them from fraud?