Online fraud on the rise
Bloomberg has found that the annual global cost of cybercrime is estimated to be over $US400 billion, and while Gen X and Y have generally high levels of trust when it comes to their financial institutions according to Richard Davis, President and CEO of Bancorp, that trust can be lost in a flash.
“Trust is ours to lose, though it is also ours to protect,” said Richard, who also added that, “If we don’t protect that trust, it’s game over.”
This is where new developments in mobile security such as multilevel authentication are required in the sector, to promote and increase trust between financial institutions and their customers.
The circle of trust
The financial services industry is moving from an age of digital disruption to one of digital survival and mobile providers need to step up to the plate when it comes to cybersecurity.
Mobile broadband is predicted to grow at a Combined Annual Growth Rate (CAGR) of 15 per cent to 5.9 billion connections by 2020, and with the smartphone as the primary access device for Gen X and Y, highly secure mobile-based identity management is an integral part of any growth solution for financial companies.
Therefore, everything from fingerprint, facial and voice biometrics to electronic signatures and even electrocardiogram (ECG) authentication is being rolled out and trialled in a bid to stay one step ahead of cybercriminals and to reinforce the bonds of trust between financial companies and their customers – a trend expected to impact all financial services businesses in the coming years.
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Protection equals efficiency
For Australia’s small to medium financial businesses, it’s all about increasing online protection, while for their customers it’s all about learning to navigate and trust these new and enhanced security regimes.
So, while there’ll be costs involved for businesses, these can be offset by increased efficiency.
For example myGov, the online gateway to multiple government services using a single set of digital credentials, is forecast to generate around $AUD547 million in efficiency savings and reduced red tape over the next 10 years.
The cyber mixed bag
New technologies and enhanced procedures will keep both financial providers and their customers safe from cyber attacks.
For example, a system of trusted digital identities could have significant network benefits throughout the financial sector and the broader digital economy.
Not only could this be more efficient for businesses and more convenient for consumers, who would need to maintain far fewer username and password credentials, the widespread acceptance and mutual recognition of trusted digital identities across the financial sector could also assist customers in transferring accounts between financial institutions.
For business, the good news is that it appears that Gen X and Y are keen to come on this transformational journey. As a result, understanding how you can safeguard customer data will prove beneficial for customer retention and reputation management over the long run.
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