Half of banks surveyed fret about the activity being too manual.
Philippine banks are mainly worried about the complexity and costs of validating the identities of digital clients as technological pain points impact authentication processes, according to a FICO survey.
Half of the banks said the processes are still too manual, whilst 45% fret about the inflexibility around identity approaches. The consistent collection of supporting data and documents was also identified as a top challenge.
The time taken to verify identities and the cost of third-party verification were also listed as main problems. The sector’s authentication strategies are mainly driven by security, with the concern over the sophistication (50%) or volume (29%) of attempts to breach access control being much higher in the Philippines than in the other seven countries surveyed.
Moreover, the country’s banks risk losing business once their customers are forced to leave their chosen channels. Another issue is that Philippine lenders do not make separate fraud and authentication decisions, said FICO APAC head for fraud, security and compliance Subhashish Bose, as the sector is less concerned with user experience and will therefore ask a customer to authenticate again for a particular high-risk action.
“Philippine banks are often torn between the deployment of multiple point solutions that require integration and broader platforms that span authentication but don’t play well with third-party systems,” he explained.
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