Banks Starting to Adopt Authentication Technology As Deadline Nears

STRONG Authentication

With the December deadline approaching for implementing better authentication for online banking systems, financial institutions are hard-pressed to come up with technology solutions that will satisfy regulators. It's going to be a race to the finish line to meet the deadline set by the Federal Financial Institutions Examination Council (FFIEC).

As of July, only 16% of financial institutions had implemented authentication technology capable of meeting FFIEC requirements, according to a survey by Roth Capital Partners. In the same survey, only 5% said they intended to use hardware tokens to meet the FFIEC requirements; hardware tokens, which are devices that plug into a computer's USB port, are a form of multifactor authentication, which is based on something the user knows, such as a password, and something he has (the token).

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