With consumers living more of their lives online and engaging in an ever-expanding range of digital activities, one of the challenges for financial institutions is to ensure that security standards keep up with the constantly evolving threats to customer accounts and data.
Just one example of the dangers that providers and consumers must be aware of is identity fraud, which affected 15.4 million people in the US alone last year, according to research from Javelin.
One recently proposed measure that could have a positive impact on digital security in Europe is a pan-industry platform for online registration, e-identity and data services.
Major European businesses including Deutsche Bank, Allianz and Postbank have stated their intention to cooperate on the development of the system, the aim of which is to make online registration simpler and more secure for clients.
At the heart of the initiative is a ‘master key’ that would allow users to register and identify themselves across various industries. The companies involved in the project said this would increase convenience, strengthen security and also guarantee the “highest standards in data security and data protection”.
In the future, it’s possible that the platform could be used for digital financial services and payments.
Frank Strauss, chief executive officer of Postbank, said: “In the digital era more than ever, banks have a key role and are responsible for supporting their clients as they make their way into the digital future.
“That is why Postbank – one of the first online banks – is happy to join this pioneering initiative in order to ensure that its 14 million clients can place their trust in a secure and reliable digital world.”
Financial institutions are clearly aware of the need to continue innovating and evolving to protect their customers and data from fraudsters. Recent research by the Confederation of British Industry and PricewaterhouseCoopers revealed that 84 percent of financial services firms in the UK had plans to invest in new security technologies and IT systems this year.