Convenience, Security, or Both? Setting Out a Vision for Authentication

by Zilvinas Bareisis, July 20, 2016
Industry Trends
Global

Abstract

Important changes in customer expectations, regulation, and technology are forcing banks to place renewed emphasis on authentication. This report discusses these drivers of change and sets out Celent’s vision for authentication.

Celent has released a new report titled Convenience, Security, or Both? Setting Out a Vision for Authentication. It addresses three key research questions.

Customer authentication is not a new topic. Financial institutions deal with identity and authentication issues on a daily basis in a number of ways. Yet today, important changes in customer expectations, regulation, and technology are forcing banks to place renewed emphasis on authentication.

“Celent’s vision for best-in-class authentication is to deliver both strong security and frictionless customer experience at the same time,” says Zilvinas Bareisis, a senior analyst with Celent’s Banking practice and author of the report. “In order to achieve this, we contend that authentication should be built on solid foundations: secure customer identity and device binding, risk- and context-aware, multifactor, and flexible, offering multiple modalities and coping with multiple ways to access the account or payments credentials.”

In addition to setting out Celent’s vision for authentication, the report discusses:

  • The upcoming PSD2 requirements for strong authentication.
  • The rise of biometrics, including different modalities and device-based vs. server-based implementations.
  • An overview of FIDO alliance and W3C Web Authentication Working Group.

This report contains nine figures and one table.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Introduction: Defining Authentication

3

Drivers of Change

6

 

Customer Expectations

6

 

Regulation

7

 

Technology and Standards

10

Authentication Technologies and Standards: Selected Deep Dives

11

 

Biometrics

11

 

FIDO Alliance

14

 

Web Browser Authentication

16

The Vision for Authentication

17

Leveraging Celent’s Expertise

20

 

Support for Financial Institutions

20

 

Support for Vendors

20

Related Celent Research

21

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