Why passwordless authentication is the future for digital banking

Why it's time to replace passwords with more advanced authentication methods

For years, passwords have been the go-to method for securing our digital identities, and 85% of US banks still rely on usernames and passwords¹. However, as technology advances and the number of online accounts we have to manage continues to grow, the flaws of this traditional security method have become increasingly apparent. Passwords can be easily forgotten, stolen, or cracked, leaving our sensitive data vulnerable to hackers and cybercriminals. And of course, when we’re prone to forgetting our passwords, we’re inclined to take steps that make them pretty useless, such as writing them down or using easy-to-guess words, such as the name of a pet, partner, child or favourite sports team. 

In fact, 89% of organisations have experienced a phishing attack in the past year in which user passwords may have been compromised², making this the most likely form of digital fraud. Weak or stolen passwords are at the root of 81% of all hacking-related breaches³. 

The good news is that it doesn’t have to be like this. There is now a robust and reliable alternative – the passkey – which gives customers of financial institutions a digital banking authentication solution that’s both secure and user friendly. 

The solution?

What’s not to like about passkeys? They are real game changers when it comes to the future of digital authentication, ushering in a new era of security and convenience that improves the customer experience and ensures consumers are confident that they can easily and safely access their bank account. This cutting-edge verification method, based on the FIDO standard, uses the power of cryptography and biometrics to provide unbeatable protection for your online accounts. 

Read more about fraud detection in banking

Unlike traditional passwords, which are vulnerable to phishing and data breaches, passkeys are immune to these threats, providing you with the peace of mind that comes with knowing your digital identity is safe and secure. 

And the best part? Passkeys are already available on all major platforms and web browsers, meaning you can start enjoying their benefits right away. With passkeys, you can take control of your digital security and enjoy a seamless, hassle-free authentication experience.  

The result?  

Switching from passwords to passkeys based on biometrics is a win-win for financial institutions and their customers. Consumers want two things when accessing their digital banking account: strong security and a simple user experience. Financial institutions can keep their customers happy with passkeys, helping to build trust and drive high levels of satisfaction. 

Still not convinced? Then have a look at our infographic, which highlights why passkeys beat passwords, backed by powerful statistics. 

It’s time to be part of the future of authentication. With FIDO passkeys for financial institution, you and your customers can enjoy the unbeatable combination of security, usability and trust that they provide. Contact us using the form below to learn more. 

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