In 2020, businesses can expect a range of regulations to be enforced, including the delayed strong customer authentication (SCA) requirement of the Second Payment Services Directive (PSD2). This requires financial service providers to provide two layers of authentication on high value purchases over £28 – aiming to improve the security of online transactions and reduce fraud.
Many game-changing regulations have come into force in the past two years. In the age of GDPR, businesses face significant ramifications for non-compliance such as financial penalties and reputational risk. This year presents an opportunity for firms to prioritise a proactive risk and compliance policy in order to succeed.
Government regulation operates around universally applicable criteria. Standards, however, such as the FIDO 2.0 protocol, is based on ensuring firms adhere to the highest levels of authentication. Alongside the speed of innovation and digital disruption, driven by fast-changing consumer trends, the regulatory and compliance landscape is having to evolve quickly to keep consumers protected.
The competing pressures of companies trying to enhance the customer experience, whilst adhering to regulations and the best possible standards of security, have meant compliance is now a key business differentiator.
Veridium’s FIDO 2.0 certification is part of a strategy to put compliance rigour at the centre of our value proposition to companies operating in a range of sectors, delivering a strong, passwordless authentication experience without compromising convenience. Conducting suitable and efficient risk assessments as part of this is crucial to ensure we provide the highest level of safety to both our employees and end-users.
Companies should look to regulations such as SCA as an opportunity, and take advantage of technology such as biometrics to facilitate the process. Emulating regulations through embedding biometrics can help businesses and governments protect the public’s security.
It’s key that the biometric industry embraces the rapid evolution of regulations and certifications that are being issued. The U.K. Financial Conduct Authority’s regulatory sandbox allows organisations to test innovative propositions in the market with real consumers. This ensures that compliance is woven into their service propositions, to produce the best outcomes for businesses and their customers. This is ultimately in the interest of the public as it impacts a range of sectors, improving services, and strengthening security for consumers.