Whilst reassuring customers that their bank access is totally secure, the instalment of a reusable digital identity verification service, ConnectID, across two Australian banks will provide a trove of data that businesses can leverage to gather information on their customers.
The banking sector and government is often looked upon as a trusted end-state of data, particularly as implementation of identity technologies is noticeable, so businesses can derive data without having to collect it themselves where the risk of data breaches is high. Arguably, the threat of malicious actors and cyber attacks is equally high across the banking sector where this type of financial crime has been steadily on the rise.
The most common cyber security incidents are reported in the financial sector, with 6 out of 10 senior executives admitting their institution is vulnerable to data breaches based on poor data management and measures.
A reusable digital identity will be a huge asset to banks looking to expand their digital security and pursue new revenue streams by offering ‘identity-as-a-service’ to merchants.
Merchants using their own verification software providers can validate access attempts by matching the acquired customer data from banks to the person trying to authenticate.
The identity authorisation service, ConnectID was developed by Australian Payments Plus that allowed Commonwealth Bank and NAB to be the first public users of this service.
It is expected ConnectID will continue its rollout gradually in 2023 across institutions and businesses.
Other banks such as Westpac and ANZ could adopt ConnectID in the coming months.
The system is sparing with collected, personal information belonging to customers who have to give their consent to cross-organisational data exchange, between the party verifying someone’s identity and the other party providing verification.
ConnectID’s Managing Director, Andrew Black will be a speaker on the main stage at Identity Week Asia 2023 from 7-8 November 2023, where tickets are on sale now! Registration is open – secure your place.