Quick and Secure: Striking the Balance to Meet Consumer Expectations

With global fraud losses related to payment cards predicted to reach $47.22 billion in 2031, the financial industry must continue to invest in security and risk management. And, according to MX’s latest consumer research report, consumers want more security and control. 

The top feature each generation wants most when it comes to the security and control of their financial accounts are:

• Gen Z: Ability to download financial data (40%) and required multi-factor authentication (40%)
• Millennials: Ability to download their financial data (39%)
• Gen X: Biometric login options (40%)
• Baby Boomers: Biometric login options (48%)

However, adding layers like multi-factor authentication elongates the login process for consumers who may have little patience for cumbersome experiences. 

So how do financial institutions and fintechs strike the right balance of quick, easy processes and security? According to Brett Allred, Chief Commercial Officer, Fintechs, at MX, it’s about creating a good blend of security to make sure that there's no fraud involved while maintaining a user-friendly experience. Here are a few things to consider that we shared previously:

Switch to authorized data connections. Only authorized third-party providers can connect to bank APIs. Consent management gives control to the end user, not allowing their data to be shared without their consent and knowledge. Connecting to financial institutions through secure connections also activates anti-fraud systems already in place.

MX offers an open finance API platform, built on FDX standards, that improves the data sharing experience between financial institutions, fintechs, and other third parties. 

Leverage Instant Account and Balance Verifications. These processes verify that the bank account number and account details are valid and that there is a sufficient balance before a transaction is processed. Verifying account details is especially important when opening a new account and moving money in order to reduce fraud.

Instant verification solutions like those provided by MX can help organizations better manage fraud and risk, maintain regulatory compliance, and improve trust with seamless user experiences.

Eliminate credential sharing with tokenized connections. This allows you to replace sensitive data such as primary account numbers (PAN) and customer information with tokens that shield access to a customer's financial data. As a result, consumer financial data stays safe because your business partners can only interact with the tokenized version of that information.

Our research clearly shows a desire and expectation for financial providers to do more — more innovative, more personalized, more secure. How financial providers balance competing consumer priorities like speed and security will be critical.

Check out the full report on What Consumers Really Want from Financial Providers for more key insights.