Consumer demand for more digital products and services is the driving force behind the rapid digital transformation for many financial institutions. This is especially true for account opening, with 37% of consumers, and more than half of millennials, citing digital channels as their preference for opening a new account.
Behavioral biometrics has evolved profoundly in the last decade. What started as the analysis of user behavior based on clicks, swipes and typing patterns has developed into a technology that relies on deep knowledge of neuroscience and cognitive analysis that ventures into the unchartered areas of the human mind.
The gig economy has exploded, especially in the wake of the COVID-19 pandemic. According to the Bureau of Labor projections, the portion of gig economy workers will increase to 43% in 2020. Among millennials, 40% have identified as participating in the gig economy.
Improving cyber security ROI while managing risk and providing a seamless customer experience is a balancing act. With the number of hackers and criminal groups targeting financial institutions at unprecedented levels during the pandemic, strong fraud detection solutions are more important than ever.
Mule accounts are the most critical link in the fraud supply chain infrastructure. After all, cybercriminals can’t steal money if they have nowhere to send it. According to Europol, more than 90% of all money mule transactions are directly linked to cybercrime.
The pandemic provided many financial institutions with a digital reality check as they scrambled to accommodate the surge in digital channel usage. As the future of money is changing, this has also presented financial institutions with an opportunity to rethink current technology investments as they adjust their business models and take a step closer to a digital-first strategy. With an expected increase in digital channel investment, preventing digital fraud while improving customer experience will be the key to attracting new customers and retaining existing ones.