Financial services companies — in particular those involved in fintech — face a number of interrelated challenges that LoginID’s solutions can solve. The inherent sensitivity of financial and payments data, and the fact that this information is highly sought after by bad actors, means that companies must use the most secure and accurate authentication and identity management mechanisms available to keep their customers safe. In addition, regulatory agencies and policymakers around the world have developed stringent legal frameworks that impose strict requirements on private sector actors operating in fintech.
At the same time, the emergence of open banking is creating unprecedented opportunities for financial institutions to innovate and for consumers to gain control over their data. This potential can only be achieved when authentication and identity management is both secure and convenient.
Helping FinTech Companies Become PSD2 Compliant
LoginID provides cutting edge authentication and identity verification solutions that allow fintech companies to attain the highest level of security and compliance with laws such as the EU’s Revised Payment Services Directive (PSD2), without compromising convenience for the user. The following features of our FIDO2-enabled authentication solutions ensure compliance with the PSD2:
Strong Customer Authentication
The PSD2 requires that users be authenticated using a mix of at least two elements that relate to possession (something you own), inherence (something you are) and/or knowledge (‘something you know’). LoginID’s authentication solution is inherently a 2-factor authentication method that is explicitly PSD2 compliant. By contrast, other proprietary biometrics solutions on the market are single-factor, meaning that an additional safeguard must be added.
Security
The PSD2 requires companies to mitigate the risk that any of the elements used for authentication are accessed by unauthorized parties. Our solution ensures that the elements reside in the authenticating device — even if the device is stolen, that information cannot be read, copied or transferred, and the user cannot authenticate unless they have the necessary inherent features (e.g. biometrics) or knowledge.
Transaction Confirmation
The PSD2 mandates that payment services must have a secure mechanism that allows users to review and confirm the transaction. We support this through a mechanism by which the details of the transaction and a confirmation request are sent to the user, who in turn authorizes payment — e.g. by scanning a fingerprint.
About LoginID
LoginID is a comprehensive FIDO-based multifactor authentication solution that offers frictionless authentication. Created with developers and enterprises in mind, LoginID is FIDO-certified and adheres to PSD2 principles. With an implementation time of just one hour, LoginID’s multifactor authentication solution is a quick, simple to integrate, cost-effective, and regulatory friendly tool to give your business peace of mind around security, allowing you to focus on growing your business.
