Biometric Authentication for Financial Technology

From lending to wealth management, fintechs must be able to prove genuine identity. Biometrics are the most secure, user-friendly, and compliant form of authentication.

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Biometric Authentication for Financial Technology

From lending to wealth management, fintechs must be able to prove genuine identity. Biometrics are the most secure, user-friendly, and compliant form of authentication.

Read Case Study

Fintech Security Solutions: Why Phishing-Resistant Authentication Matters

Strong, user-friendly authentication is crucial for secure systems. Two-factor authentication (2FA) under PSD2’s Strong Customer Authentication (SCA) helps address password vulnerabilities. However, many methods are vulnerable to phishing. Email codes can be forwarded, and SMS OTPs are at risk of SIM-swap attacks, where fraudsters intercept messages.

As PSD3 emerges, increasing fraud liability and stricter regulations, the need for more secure, phishing-resistant authentication solutions becomes even more critical to protect sensitive accounts and transactions.

Biometrics: The Gold Standard

Biometrics provide secure, convenient, and phishing-resistant authentication with minimal error rates, requiring little training and enabling near-instant user verification. Widely embraced in banking, more than half of credit cardholders would switch banks for biometric options.

A major advantage is identity assurance—verifying users’ true identities, unlike SMS OTPs, which cannot confirm the authenticity of the person entering the code. This is essential for Strong Customer Authentication.

Dynamic Linking for PSD2 SCA Compliance

In the EU, PSD2 SCA mandates payment institutions use at least two authentication factors and dynamically link transaction amount and account number.

Keyless ensures compliance by generating a unique one-time code before each transaction, securely linking transaction amount and account number.

Integrating Identity Verification and Authentication

Identity verification (IDV) and authentication are critical for fintechs. Typically, users verify their identity once with a government ID and use biometrics for future actions like payments or account recovery.

However, IDV and authentication often require separate sign-ups or lack integration. Fintechs can streamline this with the IDV Bridge, allowing users to authenticate with Keyless without needing to enroll in the service.

End-User Benefits:

Existing Users: Users already verified with an IDV are passively enrolled through a backend bulk integration.
New Users: Users enrolling with an IDV are automatically enrolled in the biometric authentication system.
Other Users: Those not verified with an IDV can enroll via SDK or web.

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