Over the last year or so, there has been a significant uptick in the number of financial institutions leveraging disruptive financial technology (fintech) services. Third party fintech providers are now streamlining everything from payment processing and lending to wealth management.
As these two industries continue to merge, though, cybersecurity is quickly becoming a growing concern to U.S. policymakers and regulatory agencies. Just recently, for instance, a group of business leaders from the fintech industry travelled to Washington, D.C. for a series of important discussions with the Federal Reserve Board (FRB), Consumer Financial Protection Bureau (CFPB), Office of the Comptroller of the Currency (OCC) and Federal Deposit Insurance Corporation (FDIC).
While cybersecurity wasn’t the only topic that was discussed, it was a big one.
According to The Hill, U.S. regulators are worried about operational risks associated with the use of novel technologies in financial settings. As such, regulators and policymakers expect financial institutions to “meet high standards for the due diligence and monitoring of their third-party service providers, especially around cybersecurity and data security.”
Of course, identity verification is a major piece of the cybersecurity puzzle for banks and fintechs. And one way that companies can strengthen authentication and reduce fraud is to embed multifactor security options into their applications — providing extra security options beyond traditional passwords and personal identification numbers (PINs).
While this may sound difficult, it can be easily accomplished by working with a company like BioConnect, a VoiceVault partner and creator of the BioConnect Identity Platform which supports a range of enterprise-grade biometric technologies including face, fingerprint and iris scanners. The BioConnect Identity Platform also utilizes VoiceVault’s cutting-edge voice biometric identity verification technology. Fintechs can use the BioConnect Identity Platform to obtain simple, user-friendly and highly-secure user identity verification.
“Ease of use, security and fraud reduction are major drivers as to why we’re seeing changes to identity verification within every day, run of the mill banking applications,” stated Bianca Lopes, Vice President of Strategic Marketing and Global Alliances for BioConnect. “VoiceVault has a brilliant track record and a sound voice recognition technology that will provide enterprise clients with ease of use, scalability and ultimately, greater choice by being a part of the BioConnect Identity Platform.”