Decoding the Role of Multi-Factor Authentication and IVR in Banking
One of the greatest adoptions in the banking industry is the introduction of multi-factor authentication (MFA) and Interactive Voice Response (IVR) systems. Both of them are considered effective ways that help banks to reduce fraud. This blog explains their individual roles in banking.
There has never been a better time to enter the banking industry. Modern technologies have made banking a simple and entertaining experience. However, the competition has grown tougher. Customers have an increased appetite for engaging digital products that seamlessly fit into their daily lives.
But this also means not neglecting the cyber security threat that customers are constantly vulnerable to. Multi-factor authentication is one solution to keep the trust of their customers intact. Adding IVR into the mix can further help the banking industry deal with the new technical challenges they face on the digital front.
Understanding Multi-Factor Authentication
Multi-factor authentication (MFA) is gaining huge popularity globally after banks and other financial institutes started implementing it to prevent cyber frauds.
MFA provides a second level of credentials after a user logs in successfully with their credentials. This second-level validation requires either a one-time password or a soft token or a hard token. It increases the security of the users' data. If the token is lost, the user can still access their accounts by generating a new one.
Based on this fact, the chances of theft reduce to a great extent if MFA is employed for user authentication.
Understanding Interactive Voice Response
Interactive Voice Response (IVR) is a type of call management system that enables your business to receive calls through different channels such as online, email, or fax and offers services in real-time.
As traditional phone systems are losing their importance in today’s world of smartphones and the internet, more and more banks look forward to an IVR system for its convenience and effectiveness in conducting communication.
The Role of Multi-Factor Authentication and IVR in the Banking Industry
When it comes to providing a secure environment for your customers you can’t leave anything to chance. There are a number of very important technologies that, when used properly, will help ensure that your customers’ data is not at risk. Some of these technologies include multi-factor authentication and an Interactive Voice Response (IVR) system.
The following will give you a detailed insight into the different roles of MFA and IVR systems.
1. Provides strong authentication
A constant threat to credential harvesting has led to the adoption of multi-factor authentication, providing an extra layer of security to its users. A weak or stolen password can have consequences on the organization and customer's trust. Thus, using multiple weighted factors can prevent hackers' access to confidential data. These factors could be, using passwords and phone to log into an account.
2. Calculates the risk vector
With the introduction of work-from-home arrangements, the workplace of different users varies. Thus to cater to the needs of more complex requests, adaptive multi-factor authentication is here.
Adaptive Authentication is a method to send notifications or prompt the consumers to complete an additional step(s) to verify their identities when the authentication request is deemed malicious according to your organization's security policy.
For example, a user wants to access a company's data. He is sitting in a coffee shop and operating via an unsecured WiFi, then MFA would ask for additional verification data to ensure a secured network.
3. Enhances user experience
Being able to log in anywhere with the same password is convenient. However, by doing so you could be locking yourself out of your accounts if you forget them. With multi-factor authentication, you don’t have to worry about forgetting your password until it’s too late. There are ways to combine security with convenience to protect your data at all costs, enhancing user experience in the process.
4. Eliminates customer friction
Attending thousands of queries manually in a day is not easy. Moreover, it's a lengthy process and leads to customers' disappointment. IVR software helps a bank save time from small queries keeping agents free to deal with a more complex one. This highly efficient system is a boon for the banking industry. Further, it allows a bank hassle-free resolution of the problems of its customers.
For example, if a customer wants to know about the procedure to open a bank account, he can get the related information by clicking on telephonic numbers.
5. Sends immediate fraud notification
On detection of any fraudulent transaction, a notification is sent immediately to the concerned customer. However, a message is sufficient to inform the customer about fraudulent activity. But an IVR enables the customer to directly have a conversation with the bank's agent and take necessary steps.
6. Easy registration of an immediate report
In case of a lost, damaged, or stolen card, the user can immediately report via IVR. There is no need to call the customer care number and wait for an agent. With a simple click, you can register your problem or block the card in your preferred language.
7. Surveys
IVR is an excellent way of conducting surveys and collecting necessary data for further improvement in different policies. Moreover, bank authorities can keep an eye on their employees by asking their customers about their experience in interaction with the company's agent.
The use of technology in various ways has been a great factor in accelerating the growth of many sectors. These have resulted in the enhancement of product quality, improvement of delivery time, and reduction in costs. The banking sector is one sector that utilizes technology to add value to both its members and other commercial businesses.
Customers must feel and be sure that the bank's employees only can access their accounts and personal data. First-and second-factor authentication is now being replaced by newer technologies, specifically multi-factor authentication. This greater level of protection is gaining popularity in the wake of the growing threat of information theft and identity theft due to cyber-attacks.
