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About FIDO Alliance

The FIDO Alliance is an open industry association launched in February 2013 whose mission is to develop and promote authentication standards that help reduce the world’s over-reliance on passwords. It is based in Wakefield, Massachusetts.

FIDO Alliance Headquarter Location

401 Edgewater Place Suite 600

Wakefield, Massachusetts, 01880,

United States

Latest FIDO Alliance News

Open banking needs better consent handling to allay consumers' security worries

Dec 6, 2021

A PYMNTS report reveals how banks and third-party financial services companies can remove an impediment to winning over consumers' trust by improving data-consent processes. The report delves into consumers' uneasiness about data sharing and outlines various steps to approach users' consent for data sharing. Insider Intelligence publishes hundreds of insights, charts, and forecasts on the Banking industry. Learn more about becoming a client . The news: Banks and third-party financial-services providers can revamp how they manage consumers' consent for sharing the data needed to underpin open banking ,  per  a new PYMNTS report that outlines an international landscape. Insider Intelligence How we got here: The report delves into consumers' uneasiness about data sharing, citing other companies' recent studies of consumers in various countries: A 2021 Axway  survey  of US consumers found that 47% of consumers worried about losing control over their financial data access, and 27% worried that the data would be used against them. A 2021 Deloitte  survey  of Indian consumers showed that almost 70% replied that institutions should increase their emphasis on data protection. A 2020 survey from ING  found  that an average of just 30% of participants across Europe replied that they were comfortable with sharing data—even if they consented. The wariness has persisted, even as regulators in some geographies are looking to make open banking more convenient: In the UK, ongoing steps include  scrapping  a 90-day reauthentication mandate and rolling out recurring payments that consumers  don't  need to repeatedly consent to. In the US, the Consumer Financial Protection Bureau (CFPB) is engaged in the rulemaking process for  issuing  a future open-banking regulation. The CFPB recently noted that it will use open banking—by making account switching easier—to incentivize banks to move away from overdraft fees, according to PYMTS. Suggested solutions: In response, PYMNTS outlines various steps that banks and third-party providers can take to improve how they approach users' consent for data sharing: Proactively include opt-out features. As examples, the report cites existing requirements in Singapore and in the EU, where companies must explicitly let people withdraw their consent at any time they want. Include expirations for consent. This approach entails using an automatic revocation unless consent is reaffirmed. Move away from passwords. PYMNTS cites work by entities such as the FIDO Alliance to create passwordless authorization, with a biometrics approach noted. The big takeaway: Open banking's growth will be stymied unless consumers feel empowered to handle their financial data and trust that it will be handled appropriately by companies. Improving consent handling will help them leap over this hurdle. Changes to consent processes are also necessary for these companies to build trust with their consumers. Trust is  important  for getting more people to use open banking. For example, a recent US survey by PYMNTS and MX  showed  that more than one-quarter of respondents cited trust in their financial institutions for protecting financial assets as their reason for being comfortable with sharing their data, and 16% cited trust in third-party providers that they connect to. Want to read more stories like this one? Here's how you can gain access: Join other Insider Intelligence clients who receive Banking forecasts, briefings, charts, and research reports to their inboxes each day. >> Become a Client Current subscribers can access the entire Insider Intelligence content archive here . Loading Unlock this article from Insider Intelligence! Enter your email below to gain access to our free II Daily newsletter that delivers a snapshot of key finance trends right to your inbox: Email address Continue Reading Note: By entering your email and clicking Continue, you agree to receive emails from Insider Intelligence, and accept our Terms of Service and Privacy Policy . Sign up for notifications from Insider! Stay up to date with what you want to know. Subscribe to push notifications Get a daily newsletter packed with financial services data, insights, and analysis from the Insider Intelligence team. Sign up for the II Daily. Email address

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