Are biometrics the future of credit union security?
With the increased use of mobile banking apps, cybersecurity has quickly come to the forefront as an imperative measure to guard against hacking and fraud. In a recent study, researchers predicted that smartphone subscriptions could hit six billion globally by 2020, and 81% of adults in the U.S. will be using mobile banking. As all of these members transmit their usernames, passwords and account information over the local area WiFi, there is an increasing amount of vulnerability that could lead to their information being compromised.
Similarly, online banking has also felt the impact and the need for more robust security measures, as credit unions now offer loan and account applications and a variety of other transactions over the internet, capitalizing on the convenience and ability to reach an account holder at home or on the go.
But all this comes at a price. Credit unions must go to great lengths to authenticate the identity of the applicant or user and do as much as possible to guard against fraud before opening an account, granting credit, remotely depositing checks and transferring funds. Many have partnered with fintech companies in order to offer the most cutting-edge technology to their members, looking to provide advanced credit union cybersecurity measures, including biometrics.
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