Mobile identity and unlocking the DNA of trust

  • Gen X and Y giving financial institutions new behaviours and requirements
  • Why shouldn’t their mobile devices be able to recognise them for who they are?

Mobile identity and unlocking the DNA of trustFOR years the concept and use of biometric identification, such as retina fingerprint and voiceprint identification, was only seen in movies.
Today however, these capabilities are fast becoming realities and what our technology- and security-savvy consumers are calling out for from their day-to-day service providers.
Gen X and Y, the pioneers of the modern digital era, are presenting today’s financial institutions with a new breed of consumer behaviours and requirements.
When it comes to interacting with brands, we’re seeing this group shifting its security preferences, moving away from ‘having to prove ourselves, to being recognised for who we are.’
For instance, the smartphone has fast become the product that most represents its owner. It is home to confidential and personal information, connects us to our bank accounts, and is even beginning to converge with our wallet to take over payments.
Expectations around how financial institutions manage mobile identify have been transformed, so why shouldn’t our mobile device be able to recognise us for who we are too?
For financial service providers, this presents significant opportunities to better engage with customers in a much more personalised way.
But can we confidently say that we know what they want? And more importantly, how close are we to providing it?
In my recently released report Mobile Identity – The Fusion of Financial Services, Mobility and Identity, we explored this generational shift and how our identities and consumption of financial services are now inextricably fused with the mobile device.

Mobile identity and unlocking the DNA of trust

In just seven years, since the advent of the smartphone, these devices have become the primary means for consumers to access financial services, with this inflection point forever changing the industry.
2014 was a landmark year in banking, ushering in the age of mobile with devices now being the most preferred way for consumers to engage with their service provider.
We are now transitioning to an ‘omnipresent’ customer engagement model, characterised by expectations of predictive, personalised and presence-based financial application experiences that are part of the fabric of our increasingly interconnected lives.
Gen X and Gen Y have become so dependent on their smartphones to access their financial services, that it’s led to a behavioral state we are calling ‘no-finapp-phobia’ – the fear of being without financial applications.
Globally, Telstra’s research reveals customers trust financial institutions more than other organisation types, but few are very satisfied with their current institution’s security performance.
In fact, one in five consumers stated they would be happy to go as far as sharing their DNA if it would help secure their financial and personal information.
While the industry still thinks customers prefer passwords, it has become a sometimes flawed authentication method – everyone knows it.
To give an example, in Singapore, the majority of consumers using mobile banking applications want their mobile devices to instantly recognise them via biometrics, such as fingerprint and voiceprint, instead of having to prove who they are with passwords and usernames.
Two-thirds of Singapore consumers think that using biometrics – such as voice, fingerprint, iris and facial recognition – would be more secure and help reduce the risks of fraud.
These findings were consistent with consumers across Australia, Hong Kong, Indonesia, Malaysia, the United Kingdom and United States.
For financial institutions, mobile identity services deliver a wide-ranging payload – from improved acquisition and retention of Gen X and Y customers, thanks to developing trust in keeping finances secure, through to improved customer satisfaction and increased advocacy by developing trust in keeping personal information safe.
In turn, this would see reduced incidences of fraud, security and privacy breaches.
Mobile identity and unlocking the DNA of trustMore frequent access to consumers via the mobile of course yields more than simply retention and an increase of security. It means greater personalisation.
This means it is easier to target with relevant services, provide products that suit specific needs, and improve customer experience across all channels.
The battle to acquire and digitally engage Gen X and Y is most definitely on. The online pure plays are ‘winning wallet,’ but is it now the mobile pure plays’ turn?
As the centre of financial services gravity moves to Gen X and Y, we need to respond by designing identity services that accommodate the fusion of financial services, mobility and identity, and which engender consumer trust and confidence.
Undoubtedly, mobile identity is a fundamental enabler for innovation, and – just as importantly – is critical to the trust relationships that will unlock access to many wonderful new experiences that will be created as mobile financial services continue to evolve.
Rocky Scopelliti is global industry executive, Telstra Global Industries.
Related Stories:
1 in 4 Singapore consumers willing to share DNA … no, really!
Adaptive identities coming to forefront of security: RSA
Create moments of magic by engaging with the ‘virtual you’
Identity and access management: 5 things to watch out for
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