– Andy Cease, Product Marketing Manager, Entrust
Describing 2020 as a disruptive year would be an understatement: from how much time we spend at home, to how the finance industry operates. The pandemic has also drastically accelerated some of the trends that were just taking a hold a few years ago; remote working and more robust mobile experiences have become the norm over just a few months.
As we put 2020 behind us: remote ID proofing, instant card issuance and single sign-on authentication are going to be key priorities – here are my predictions for the year ahead:
ID Proofing Authenticates Identity Remotely.
In 2021, due to the ongoing restrictions in some countries and the permanent customer behaviour changes caused by the pandemic, remote identity authentication will become a finance industry standard process. Financial institutions will keep customers safe by reducing the need to interact with people and step foot in public spaces while continuing to securely open new accounts or access certain services.
The customer will use their device to photograph an official form of photo identification, such as a driver’s license or government issued ID card, then the customer takes a selfie for comparison via facial recognition technology. ID proofing like this, involves collecting sensitive personal information, including biometric data and copies of government documentation. As such, it’s important to protect customers’ privacy by partnering with security providers that prioritize protecting personal data, as well as implementing strong cryptography strategies to avoid data breaches and other disruptions.
It’s important to note that ID proofing won’t work for every customer in every situation. No facial recognition algorithm is perfect, and some customers lack official photo IDs or mobile devices with facial recognition capabilities. That being said, the AI engines that refine these algorithms are getting better by the day, and soon ID proofing will enable everyone to open new accounts and access services without leaving their homes. This capability will continue to pay dividends after the pandemic by making the customer experience more streamlined and convenient, creating a frictionless customer experience.
Widespread Adoption of Instant Card Issuance
Although the pandemic has driven many to adopt cardless payment methods like digital wallets and smart devices the physical payment card will still reign supreme in 2021. The tap-and-go card will take precedence over cash and ecommerce applications as a convenient and simple preventative against transmitting the virus as people continue to battle the pandemic and attempt to return to some semblance of normality.
The pandemic has further ingrained the on-demand culture in our society and consumer appetite has transferred to financial processes. In 2021, customers will continue to want access to financial services, including their payment method options. Instant card issuance will enable customers to pick up a new payment card right away, rather than waiting several days for it to arrive in the mail. In the future, financial services providers can even offer touchless instant issuance, so customers reduce the risk of exposing themselves to the virus when collecting a payment card.
Instant card issuance technology is relatively easy to adopt. All that is necessary is an instant card printer and either an on-premises or cloud-hosted software stack. Printers that are user-friendly and able to handle multiple card designs, including both credit and debit card profiles are already growing in popularity. Some businesses already offered personalised cards with printed images or alternative card materials before the pandemic and I believe that this need for personalisation will be another driver behind the widespread adoption of this technology.
This trend will only continue to develop and spread around the world. A great number of customers will transition to predominantly using contactless payment cards and this technology will be particularly important for the finance industry to address that need.
Single Sign-On Authentication (SSO) Streamlines Customer Access
Financial information is incredibly sensitive and requires the highest levels of protection, but the strongest passwords are often the hardest to remember. If a customer needs to remember multiple passwords to access different services or accounts — or secure areas of a building — the difficulty is multiplied, and so is the potential for password theft or password fatigue.
In 2021 and beyond, Single Sign-On (SSO) authentication will be implemented to securely link access to multiple accounts to one password. Customers can sign in once on a mobile phone or alternative devices and gain access to accounts and services without the need to manage multiple passwords.
It is important to note that with SSO, cracking one password can give a bad actor access to multiple platforms, so it’s especially important to avoid easy-to-guess combinations. This places even greater importance on ensuring customers knowing what constitutes a strong password and why it’s vital that theirs is secure.
Businesses can further support their customers by implementing additional layers of protection, like two-factor authentication, as well as strong cryptography strategies that keep sensitive information safe. While no plan is 100% fool-proof, having a clearly defined strategy and team dedicated to protecting sensitive information is essential to maintaining customer and employee trust.
Thinking Ahead to the Post-COVID Future
With widespread distribution of vaccines on the horizon for 2021, there is a chance for us to return to normality in 2021 and there will initially be a surge in people returning to old habits like visiting bank branches for face-to-face interactions. However, financial institutions will continue to transform and will implement a balance between in-person and digital-based customer experiences going forward. Within that transformation: remote ID proofing, SSO and instant card issuance will provide a transition to frictionless financial processes, a demand that will continue long after the pandemic is over.
