As digital financial services rapidly evolve, financial institutions face multiple challenges, including enhancing security, reducing costs, and optimizing user experience. Implementing Financial Fast Identity Online (FIDO) technology has become an effective solution to these issues.
Financial FIDO adopts international FIDO Alliance standards, leveraging asymmetric key technology and biometric verification mechanisms. This allows users to bind their mobile devices and biometrics, eliminating the need for traditional usernames and passwords for secure identity verification. This not only reduces the risk of account and password theft, and minimizes money laundering and fraud, but also cuts the high costs associated with traditional equipment and manual verification. Additionally, with Financial FIDO, users can quickly access digital financial services on any platform or device, significantly enhancing user experience and service efficiency.
With Authme’s one-stop KYC service, businesses can smoothly integrate Financial FIDO technology to achieve secure, convenient, and efficient digital financial services.
What is Financial FIDO?
Application Scope:
- The Financial FIDO App, through an identity verification center, connects services such as bank cloud counters, online banking, mobile banking, securities/futures account opening, mutual fund electronic trading, online insurance, and mobile insurance.
- Financial FIDO technology is used for binding personal information and biometrics on mobile devices, facilitating multi-factor authentication (MFA) without the need to reapply for usernames and passwords or carry physical documents.
Technical Foundation:
- Adopts international FIDO Alliance standards, based on asymmetric key technology, allowing users to securely verify their identity by binding mobile devices and biometrics.
- User information is not stored on servers, and identity verification is completed through biometric verification (e.g., facial recognition), enhancing user privacy protection.
Practical Applications:
- Mega Bank and Mega Insurance have implemented Financial FIDO for updating cloud counter information, online securities account opening and settlement account binding, and internet insurance member registration and policy purchase.
- Taiwan Cooperative Bank uses it for mobile banking login services and digital deposit account identity verification, eliminating the need for repeated verification.
Advantages of Implementing Financial FIDO
- Benefits for Users:
- Simplifies the application process by using biometric recognition such as fingerprints and facial recognition instead of traditional password authentication.
- No password storage on FIDO servers, reducing the risk of privacy breaches and protecting personal identity.
- Benefits for Financial Institutions:
- Financial FIDO facilitates cross-institutional data transfer, reducing the operational costs of repeated verification.
- Enhances customer service, optimizing convenience and efficiency, with wide applicability in various industries such as banking, securities, and insurance for identity authentication scenarios (e.g., digital bank account opening, securities account opening, online insurance).
What is the Financial FIDO Security Control Implementation Guide?
1. Digital Identity Verification Mechanism
- Identity Registration: Financial institutions must verify the identity of new customers. Verification can be done in person, via chip-based personal certificates, or chip-based financial cards. All verification processes must retain images and proof of customer consent (such as signatures and biometrics).
- Token Management: During registration, customers must complete identity verification and FIDO key pair generation and storage on the same device and connection session. If this cannot be completed in one session, an activation code must be generated and the customer’s identity re-verified.
- Identity Verification: FIDO verification is required based on the transaction type, with each instruction-based service needing individual verification, and each transaction instruction (e.g., non-designated transfer transactions) also requiring individual verification.
2. Risk Adaptation Framework
Depending on the risk level, verification mechanisms are divided into four levels (low, medium, high, and highest):
- Low Risk: For customer marketing apps, password verification alone may be used.
- Medium Risk: Additional verification methods such as OTP (one-time password) are required.
- High Risk: Dual-factor authentication (2FA) is recommended, combining passwords with one-time verification codes.
- Highest Risk: For operations like transfers, FIDO or higher-level dual-factor authentication must be used to ensure transaction security.
3. New Type Handling
- New Application Scenarios or New Verification Technologies: Do not need to wait for self-regulation updates to be used. Before launching, financial institutions must consult with the FSC to determine if a business trial is needed. When introducing new technologies or applications, financial institutions must ensure compliance with existing regulations and security requirements.
- Flexible Operation: Ensures financial institutions can adapt quickly and operate efficiently in a rapidly changing technological environment. All new technology introductions must undergo risk assessments and necessary security checks to ensure compliance and safety.
Authme’s Assistance in Implementing Financial FIDO
Authme provides a one-stop identity verification service, insight into regulatory compliance trends, and assists businesses in constructing FIDO-compliant financial services.
Our services include OCR document recognition, NFC chip document verification, and facial recognition technology, offering convenient and efficient verification methods. Our zero-trust solutions further ensure digital security, reducing manual verification costs, improving verification efficiency and compliance, and helping businesses implement Financial FIDO for faster, safer, and smoother online service processes.
