Things have changed: More people do banking on their phones than on their desktops. And more people access their online accounts — whether banking, shopping, insurance, or even gaming — from a plethora of different devices, rather than just one laptop. That means authentication has to change too. Before we introduce choices like multi-factor, two factor, biometric, behavioral, or device based, it’s good to know how consumers feel about these methods and their usage. Join Aite Group's Research Director Julie Conroy as we discuss fresh research on consumer attitudes towards authentication. * How much is too much, or too little? * How often does "authentication frustration" lead to closed accounts or help desk requests? * Who is willing to accept a tiny bit more friction for a lot more assurance? * How do these perceptions change between generations? Watch this on-demand webinar today to hear the results and to speak into this conversation.

1. WEBINAR
CONSUMER VIEWS ON
AUTHENTICATION
APRIL 2017
NEW RESEARCH ON PERSPECTIVES AND TRENDS

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THE DEATH OF PASSWORDS
2004
2012
2016
• components
“ Z O M B I E T E C H N O L O G Y ” D E M O N S T R A T E D
“But I’m
Not Dead Yet!”The Mat Honan
Hack and the Year
of the Mega Breach
Bill Gates
at the RSA
Conference

3. 3
6 billion records compromised since 2013
(Last year, 1.5 billion from Yahoo alone)

4. 4
How do consumers value
authentication?
How do consumers react
to poor experiences?
What preferences exist for
types of access controls?
How will FIs adapt to these
preferences?
When will we turn the
corner to “passwordless”?

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J UL I E C ON R OY
R E S E A R C H D I R E C T O R
n Head of Aite Group’s Retail Banking & Payments practice, covering
fraud, data security, anti-money laundering, and compliance.
n VP-level product management roles in financial services, risk
management and payment processing.
M I C H AEL TH EL AN D ER
D I R E C T O R P R O D U C T M A R K E T I N G , I O V A T I O N
n Manages go-to-market, launch and customer education activities for
iovation’s authentication products.
n 20 years in VP- and director-level product management and product
marketing roles for information security companies.

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TODAY
A G E N D A
WHO WE SURVEYED
PRIORITIES FOR ONLINE BANKING
HOW BAD ARE WE AT USING PASSWORDS?
PREFERRED ONLINE AND MOBILE METHODS
RECOMMENDATIONS AND TURNING THE CORNER

7. WHO WE SURVEYED

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WHO DID WE SURVEY?
1 , 0 9 5 C O N S U M E R S A C R O S S A L L A G E G R O U P S
The survey distribution reflects
overall U.S. population
distribution
“Omnichannel” users across
mobile and web formats

9. PRIORITIES

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WHAT’S IMPORTANT?
S I M I L A R I T I E S … A N D S O M E K E Y D I F F E R E N C E S
n Ease of use is as
important, for most
groups, as passive
fraud prevention
n Interactive security
and protection is
increasingly valued
n A desire for “robust
transactional
capabilities” created
the biggest delta
between groups

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n Transaction tagging
n Flexible reporting and
transaction searching
n Internal and external
transfers
n Integration with tax
services and apps
n Digital onboarding
n Portfolio
management
WHAT’S IMPORTANT?
S I M I L A R I T I E S … A N D S O M E K E Y D I F F E R E N C E S

12. HOW BAD ARE WE
AT USING
PASSWORDS?

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n 107 accounts per
average user, expected
to be 207 by 2020
(Survey by Dashlane 2014)
n Paradoxically, the better
we do at password
hygiene, the worse
usability becomes:
dFouY#4!9n is a strong
password but a
nightmare to manage
NUMBER OF UNIQUE PASSWORDS
S E C U R I T Y E X P E R T S R E C O M M E N D U N I Q U E P A S S W O R D S

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n “Extremely frustrated” or
even “Very frustrated”
customers are at odds
with the goals of most
product owners
n And increasingly, even
their paychecks
RESPONSE TO FORGOTTEN PASSWORDS
I N A W O R L D W H E R E E X P E R I E N C E I S K I N G , F O R G O T T E N P A S S W O R D S A R E A N A T H E M A

15. PREFERRED ONLINE
AND MOBILE METHODS

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Device fingerprint: a collection of hardware
and software attributes associated with a
specific device, including device location
Eye vein biometric: Uses the device’s video
recorder to capture distinct eye patterns
Facial recognition: Uses the device’s video
recorder to capture facial shapes, with
added tests for “liveliness”
Fingerprint biometric: Leverages a device’s
embedded fingerprint reader
Knowledge-based authentication: KBA
questions provide identity based on the
answers to shared secrets
Mobile network operator data: Uses the
operator’s own systems for authentication
and authorization
One-time password: Sends a one-time
password via text messaging or mobile
push
Two-way text: Like OTP via text messages,
but allows for consumer responses like
“Approve” or “Deny”
Voice recognition: Unique biometric based
on the characteristics of the user’s voice
But what do consumers
prefer?

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PREFERENCES
T O P F I V E P R E F E R E N C E S F O R E A S E O F U S E A N D P E R C E I V E D E F F E C T I V E N E S S
Username/password
Fingerprint biometric
KBA
Device identification
Facial recognition
EASE OF USE EFFECTIVENESS
Fingerprint biometric
Eye biometric
Username/Password
KBA
Facial recognition

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WILLINGNESS TO ENGAGE
• Preferences for Mobile
push and Two-way text
• But also Some markedly
negative responses
• Particularly among
Seniors’ dislike for Mobile
push technologies…
• And in every demographic
a negative response to
voice recognition

19. RECOMMNEDATIONS
AND TURNING THE
CORNER

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n One quarter are
not interested in
changing,
regardless of the
use of incentives
n More than half
would change
even without an
incentive
n The balance could
be persuaded to
change with $10 to
$25 incentive
WILL INCENTIVES CHANGE BEHAVIOR?
A N D H O W M U C H I N C E N T I V E I S R E Q U I R E D ?

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n Differences
between
demographic
groups can be stark
WILL INCENTIVES CHANGE BEHAVIOR?
A N D H O W M U C H I N C E N T I V E I S R E Q U I R E D ?

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n Start with the mobile channel
n Enable multiple forms of authentication
n Leverage the complementary nature of
notification and authentication strategies
n Tailor education to customer’s demographic group
n Consider providing incentives to shift behavior
RECOMMENDATIONS
Something
you KNOW
Something
you HAVE
Something
you ARE

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A THREE-PRONGED APPROACH
C O L L A B O R A T I O N B E T W E E N C O N S U M E R S A N D T E C H C O M P A N I E S
Consumers
Tech Companies
ENLIGHTENED & CONCERNED
CONSUMERS
HARDWARE & DEVICE
MANUFACTURERS
AUTHENTICATION SOFTWARE
PROVIDERS
ACME

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A THREE-PRONGED APPROACH
C O L L A B O R A T I O N B E T W E E N C O N S U M E R S A N D T E C H C O M P A N I E S
Consumers
Tech Companies
ACME
Still leaves the
problem of entrusting
your credentials to a
centralized store that
could be breached
Focused on ways to
make “future
concepts” a current
reality

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G O T O W W W . I O V A T I O N . C O M / R E S O U R C E S
RESOURCES
AITE REPORT ON
CONSUMER PERSPECTIVES
A comprehensive survey of consumer
perspectives on authentication and the
responses needed by the FI community
ADDITIONAL RESEARCH
AVAILABLE SOON
Follow-on research on the impact false
positives have on customer experience

26. Q&A