Identity and access management (IAM) is famous for managing access to enterprise resources. It an essential element of any information security program and one of the security areas that users interact with the most. Banks all over the world made it easy and convenient for the customers to use mobile facilities for paying bills, checking account details or even apply for loans and credit cards. That’s why app-driven mobile activities require the need for Identity and Access Management (IAM) capabilities that could be delivered to both mobile devices as well as mobile apps.

In the business environment of financial institutions it’s mandatory to keep control and compliance across complex IT Systems. These are one of the key factors to uphold a strong reputation and trust, while enabling employees and customers easy access to different systems and applications. More and more financial supervisory authorities across the world make it mandatory for the banks to possess and implement systems ensuring that access rights are both assigned and recertified properly. The financial sector has to deal with increasing national and international industry regulations such as EU GDPR, BaFin, Basel II, SOX, and Solvency II.

Identity Management in Online Banking

For financial institutions, the proper identification of the customer to the bank and the bank to the customer is of a great importance for secure providing financial services to customers. Individual and business customers are increasingly using the online platforms to access banking solutions. Accessing this kind of channels is a low cost, highly efficient method of delivering financial services. So what banks need is applying risk management controls necessary to authenticate the identity of retail and commercial customers accessing Internet-based financial services. That is possible by relying on IAM Solutions. But what exactly they provide in the complex banking sphere?

IAM provides user authentication

A robust and flexible IAM system focuses on providing user authentication without impacting consumer experience, supporting dynamic cloud-based services and providing data exchange and integrating multiple consumers in a secure manner. Applying SSO (Single Sign On) mitigates risks and gives better user experience without compromising the data of the users.

IAM provides rich set of reporting and analytics features 

IAM solutions are able to provide rich set of reporting and analytics features enabling banks to proactively document usage. It also helps for collecting information about application utilization, inactive users and login activity. It identifies users who have weak passwords, get insights into users, logins, apps, events and provide audit trails for demonstrating compliance as per cyber-security, together with privacy regulations.

IAM Solutions could be flexible

IAM system could be flexible enough to fit the changing IT security environment and technological requirements, such as adapting secure systems for biometrics, sensors, and customized device authentication. 

IAM enhances regulatory compliance

Mobile apps must be secured, otherwise this could lead to unauthorized access of sensitive data such as financial transactions or credit card details or personal information by employees or any third parties. This could cause identity theft, financial fraud or malware distribution. In this case IAM system helps the banks to meet their business demands. Developing a strong IAM program prevents attacks from the tools used by cyber criminals including reconnaissance, privilege escalation, remote access, data exfiltration and social engineering.

IAM solution gives significant advantages to both financial institutions, stakeholders and consumer. Banks using powerful IAM functions possess improved data security, lower operating costs, reduced risk relating to data access, as well as efficient audit-compliant processes in observation of all relevant regulations.