With the conceptualisation of open banking, the number of financial services and applications built by third party developers have begun to increase. This in turn spells out a rise in authorisation mechanisms and security processes that bank customers will have to go through. Financial services providers must therefore start seeking ways to create a seamless user experience, if they desire to stand out from other competitors. A login experience that is both convenient and consistent across all platforms and channels is key for financial services organisation to remain competitive and enhance their ability to launch.
With the GPRDR being implemented, financial institutions must also make sure that all their security protocols and policies are compliant with the strict requirements of the GPDR. Needles to say, our article will enlighten companies on how identity and access management (IAM) can easily address such challenges.
What is IAM?
IAM is extremely suited to providing solutions to the problems both third party developers and financial services providers will face in the deployment of their applications and services. IAM ensures that the right people is able to have access to the correct applications, services and APIs seamlessly and securely. At the same time, IAM comes with an array of features that ensure that end user experiences are not compromised in terms of quality and convenience.
How does IAM go about achieving that?
1. Single Sign-On (SSO)
Through a standardised process using just a single set of login credentials, SSO allows for users to be authenticated while protecting their data. Modern SSO also empowers customers to be able to access all their third party applications through one single login point, contributing to an overall positive user experience.
2. Multi-Factor Authentication (MFA)
MFA strengthens existing authentication and authorisation mechanisms. By using mobile devices and security features such as fingerprint sensors for biometric authentication, MFA enables for users to be authenticated while they are on the go, minimising the threat of security breaches.
3. Access Security
Having the ability to regulate the access to all applications and application program interfaces (APIs) is very important in various use cases and industries. In the context of the financial services industry, it is top priority. Modern access security offers a single set of policies that support access security for both APIs and applications, and is developed on modern standards such as OAuth 2.0.
Typically, directories like Active Directory that were built for employees, do not meet the requirements necessary for financial user data. A highly scalable and highly secure data store is imperative for the storage of identity data of business partners and bank customers.
As the global concept of open banking gains momentum with its far-reaching implications, and the engagement with financial services and applications between businesses and customers start to rise in frequency, user experience will be sure to take centre stage. The financial organisations and banks that move ahead towards highly secure, yet frictionless digital user experiences, instead of stopping at compliance, will be at the top of the pack and the competition.