Passwords are falling out of favor with consumers
The increased global penetration of mobile devices has transformed the way consumers transact with their preferred financial institutions (FIs), merchants and service providers. As consumer lives have become more digitally connected, positive identity verification of end users is now particularly important. However, many financial service providers still rely on password authentication as the primary method for their customers to access accounts and personal data. Stolen usernames and passwords therefore remain the main threat vector for cybercriminals. who may engage in identity theft and fraud often before the offenses are detected.
PYMNTS research finds consumers are using digital banking to access their accounts across multiple digital platforms, including mobile apps and mobile and desktop browsers, but 64% are using a username combination and password to access their accounts. Consumers have high expectations for convenient and secure digital banking experiences and as a result are increasingly interested in stronger forms of authentication, such as biometric fingerprints, facial scans and voice.
These are among the startling findings that emerge from The future of authentication in financial servicesa PYMNTS and entersekt collaboration. In this edition, Using Authentication to Build Trust, we examine consumer preferences for different authentication methods when accessing financial service providers. The report is based on information from a survey of 2,719 consumers from September 10 to 27, 2021.
Other key findings from the study include:
• Six in 10 consumers are willing to try login methods other than passwords. This share rises to 73% for those who use multiple devices to access their accounts. Sixty-one percent of consumers are willing to log into their accounts with alternative authentication methods, and 60% of those using mobile apps and mobile and desktop browsers say they would be “very” comfortable logging in using methods other than login credentials and passwords. Nearly half of these users believe that passwords will be phased out as a method of authentication.
• More than a third of consumers are willing to use biometric methods for authentication purposes. Forty-nine percent of consumers say they are “slightly” or “not at all” reluctant to use fingerprint readers in private settings, while 47% say the same about using them in public . Additionally, 44% of consumers say they are “slightly” or “not at all” reluctant to use facial scanners in private, and 41% say they feel the same about using them in public. Similarly, 43% of consumers are “somewhat” or “not at all” reluctant to use voice scans in private places, while only 37% say the same about using them in public.
• Nearly two-thirds of consumers say a focus on data security has a “very” or “extremely” big impact on their trust in a financial services provider.. Sixty percent say that having information about how their transactions are secure has a “very” or “extremely” big impact on their trust in financial service providers. Forty-four percent of consumers say the ability to log in without a password has a “very” or “extremely” impact on their trust, and 32% say it has a “moderate” impact.
To learn more about consumer preferences for different authentication methods when accessing financial service providers, To download The report.