Fintech Explores Identity Verification Solutions at Money 20/20

November 18, 2022
Fintech Explores Identity Verification Solutions at Money 20/20

Money is evolving and so is our relationship with it. Over the years, financial services companies have explored different avenues to better their user experiences and tech companies have risen to the occasion ― aiding in the growth of the fintech space. 

This past October, the Venetian Expo Center welcomed finance veterans and start-ups alike to Money 20/20 in Las Vegas. Held annually in both the US and Europe, Money 20/20 is the largest fintech conference with over 11,500 attendees from 3,000+ companies connecting and showcasing their latest endeavors. 

The four day conference was only the second tradeshow I have ever attended and my first in the fintech space. I could not have had a more thorough introduction to the industry and its key players. With the overhanging mandate of ‘know your customer’ (KYC), financial services companies are required to authenticate the identities of all their customers. This has financial firms — more concerned than ever with digital migration efforts — leaning into solutions for identity verification. The Venetian Expo trade floor did not lack for options, with identity and security-related businesses making up one-third of the exhibitors present.

A leading provider of secure, mobile, biometric authentication conducted a survey at Money 20/20 to assess perceptions regarding existing identity verification solutions and quickly made its findings public. Results showed more than 20% of respondents indicated they are “highly concerned” about the risks associated with one-time passwords (OTP) and knowledge-based authentication (KBA), including the theft of SMS PIN codes by cybercriminals or easily guessable responses to authentication prompts. Whereas 80% were only “moderately concerned” about these hazards, but concerned nonetheless. Other findings from the survey include:

  • The most popular methods of identity authentication are one-time passwords (36%) and KBA questions (29%), respectively.
  • Less than one-quarter (22%) of respondents presently utilize facial biometric identity identification, despite a high familiarity rate (88%).

From document scanning (both IDs and credit/debit cards), to liveness detection for the authentication of ID photos with a person’s face in real time, the identity verification avenues are endless. At Money 20/02, Microblink demoed BlinkID — an AI-driven document scanning and data extraction solution that guides users to successful scans with a 96.64% accuracy rate. 

Some companies like Veritran, a Microblink partner, launched their newest products at their booths. In Veritran’s case, it was Fusion by Veritran — a small business solution for financial firms. Microblink and Veritran collaborated for a presentation, to illustrate just how fast and easy identity verification can be when powered by two major providers in the space. 

Events ranging from panels to more presentations on the expo floor further explored both current problems with identity in fintech and current solutions. Titles that stood out to me included ‘It’s Actually an Identity Crisis,’ which highlighted identity verification as a problem that is not industry-specific, and shared in both public and private sectors. Other notable sessions included ‘The State of Identity in Government’ and ‘The Key to Mitigating Emerging Fraud Vectors? It’s in Your Hand,’ both of which were centered around fraud prevention in public and private sectors, respectively. 

The sessions taught me that enterprise fraud keeps growing and changing at an unprecedented rate as new access points are constantly emerging. Aided by economic fluctuations, the recent global pandemic, and new technologies, these emerging vectors require businesses to alter their perspectives on identity authentication and fraud mitigation, if they want to stop this loop from continuing indefinitely. Better yet, solutions for efficient identity verification now involve utilizing mobile phones, which almost every consumer currently owns and knows how to use. 

All in all, Money 20/20 is a conference I will be happy to return to in 2023. On the main Money 20/20 homepage, Adam Ludwin, President & COO of Byte Inc, was quoted saying “It’s still the one and only place where all the players come together every year. If you’re only going to go to one financial services conference you should come to Money 20/20,” and I can’t help but agree!

By: Jemimah Wavamunno, Marketing Coordinator

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