Passwords are one of the oldest and most common forms of knowledge-based authentication credentials people use to authenticate into their accounts. This identity verification method requires users to create and memorize complex combinations of cases, letters, numbers, and symbols.
While password-reliant authentication systems are utilized by almost every industry, the continuous advancements in technology have made passwords outdated. In addition, adversities, such as the spread of the novel coronavirus, have set a bigger problem for various sectors, including banks and financial technology or fintech firms.
Typically, the financial industry is more reliant on in-person processes. However, with the changes that transpired during the pandemic, financial institutions were forced to explore virtual banking. Because of this, they had to establish a more secure verification system.
Subsequently, passwords are supported by multi-factor authentication (MFA). This system uses a combination of authentication factors such as a password and an SMS or email code. But despite this upgraded system, hackers and scams such as SIM swapping have made this verification protocol inadequate and unsafe.
Persistent threats and security issues remain a huge concern in the financial industry. Consequently, the continuous developments in technology have allowed devices to support a much updated and newer identity verification for mobile banking.
These numerous improvements have paved the way for passwordless login and digital identity verification to be possible. Currently, many iOS and Android mobile devices have built-in systems to support biometrics such as facial and fingerprint recognition. These modern identity verification methods have made logging in easier and coherent.
Furthermore, a stronger verification protocol called FIDO2 has also been developed, providing a more robust and seamless passwordless login. Unlike passwords, which are vulnerable to hacking and other circumvention techniques, FIDO2 authentication factors are not susceptible to theft and scams.
To know more about these improved verification protocols, read this infographic from authID. It explains how these new systems work, their advantages, and why passwordless login is needed more than ever.