Effective digital identity solutions for banks are essential to prevent fraud and spoofing. This becomes intertwined with Anti-Money Laundering (AML) and behavior analysis in recent times.
As we navigate this evolving landscape, staying up to date with trends becomes important. The rise of Artificial Intelligence presents a significant opportunity for innovative solutions in various sectors, including financial services.
Among the companies leveraging this technology, TOPPAN IDGATE, a Taiwan-based fintech software company, stands out for its decade-long expertise in providing digital identity solutions for banks.
Kersey Shang, Founder and Managing Director of IDGATE shared,
“I established IDGATE because of the SMS One-Time-Passwords system. During this period, SMS OTP was the industry standard and deemed secure.
However, the vulnerabilities of this solution became evident as hackers exploited and compromised the security of banking transactions that led to identity and money theft”.
Recognising the shift towards mobile devices as a primary means of payment and financial services, IDGATE introduced iDenKey, a notable device binding technology that supports risk-based multi-factor authentication and introduced the in-app push notification mechanism.
Now a widely used feature in digital services, iDenKey’s introduction by IDGATE has redefined security and user experience standards in the digital financial services landscape.
Kersey added,
“Though many financial institutions are now placing heavy emphasis on AML analysis and fraud monitoring, there is room for further enhancement in existing countermeasures.
Banks currently manually block transactions in response to potential fraud cases. However, with TOPPAN IDGATE’s iDenKey solution, banks can differentiate the risk level of each transaction of service and manage fraud in real time”.
TOPPAN IDGATE is dedicated to delivering an end-to-end passwordless digital identity solution that guarantees a seamless user experience. Their product, iDenFace, an AI-based face recognition technology, has been in development since 2019 to ensure it stays state-of-the-art.
iDenFace acts as a server-side biometric engine that facilitates digital onboarding on banking apps. Together, iDenKey and iDenFace ensure a high level of convenience and security throughout the identity verification and authentication process.
Moreover, IDGATE’s digital identity solution can support device rebinding procedures to prevent identity fraud when users update personal information, log into the platform, or authenticate transactions.
Kersey emphasised the importance of combining iDenKey’s binding technology with iDenFace’s facial recognition solution for advancing digital financial services and ensuring security.
In light of recent policy changes from the Hong Kong Monetary Authority (HKMA), State Bank of Vietnam (SBV), and Bank Negara Malaysia (BNM), these comprehensive solutions may become the new industry standard.
Over the next 5 years, TOPPAN IDGATE plans to target the Southeast Asian region as highlighted by its recent collaboration with Bank Saqu in Indonesia.
Learn more about TOPPAN IDGATE here.
