PSD2 Strong Customer Authentication

PSD2 Strong Customer Authentication

Verification that protects customers’ experience.

Solution Details

PSD2 means that payment service providers will be required to use strong customer authentication (SCA) to secure more transactions. This will apply to payments and other non-monetary transactions where there is a fraud risk. To do this, PSPs will need to secure each applicable transaction by getting their customers to verify their identities using two factors, each from a different category from:

  • Inherence - this means something they are, for example a biometric.
  • Knowledge - secure information they know, such as a password.
  • Possession - this means verifying something they have, for example their mobile phone.

PSPs that don’t have appropriate paths to authentication for every customer, every time stand to lose those customers to PSPs that do. We help you to turn SCA into a competitive advantage while cost-effectively meeting your regulatory obligations.

FICO® Customer Communication Services for Strong Customer Authentication helps you deliver customer-centric SCA for every transaction and each customer so that you can:

  • Make better, more appropriate decisions – adaptive technology, using machine learning helps you dynamically build customer journeys unique to each person, their current needs and preferences, every time SCA is required.
  • Offer more choice and flexibility – integrate multiple authentication solutions and execute them from a single platform so you have more choice in the authentication methods you offer customers.
  • Deliver a consistent experience across channels – a single authentication platform delivers customer experiences that can be replicated across all channels, including; mobile app, online banking and telephone banking.
  • Be condition responsive – dynamically adapt the authentication you present to customers to conditions such as poor signal reception or network outages.
  • Take a risk-based approach – make decisions based on compliant strategies that are pragmatic and explainable.

Our PSD2 SCA solution helps you implement strong customer authentication that is compliant with PSD2’s regulatory technical standards while also protecting the customer experience and driving cost-effective efficiency. It is flexible, comprehensive, scaleable and reliable. With it you can implement strong customer authentication across all channels and for all processes using a combination of authentication factors that meet the regulatory requirements and are delivered in ways that support a positive customer experience at a lower total cost of ownership.

PSD2

Meet the PSD2 regulatory requirements
FICO® Customer Communication Services for PSD2 is designed to meet the regulatory requirements of PSD2. This is backed up by the industry knowledge of our experts, who will partner with you to determine how you can achieve compliance in all scenarios.

Deliver Superior Customer Experiences
FICO® Customer Communication Services for Strong Customer Authentication helps you deliver customer-centric SCA for every transaction and customer so that you can:

  • Make better, more appropriate decisions – adaptive technology, uses machine learning to help you dynamically build customer journeys unique to each person and their current needs and preferences every time SCA is required.
  • Offer more choice and flexibility - integrate multiple authentication solutions and execute them from a single platform.
  • Deliver a consistent experience across channels – a single platform to orchestrate across all channels including mobile app, online banking and telephone banking.
  • Be condition responsive – dynamically adapt the authentication you deploy to conditions such as poor signal reception or network outages.
  • Take a risk-based approach – make decisions based on complaint strategies that are pragmatic and explainable.

Achieve cost – effective efficiency

Take a strategic, comprehensive approach that makes PSD2 SCA cost-effective.

  • Use risk-based modelling to ensure that levels of security are transparent and there are fewer false positives that are costly to manage.
  • Automate step-up authentication and case management to reduce costly manual intervention.
  • Incorporate cost analysis into decisions on what methods of authentication are deployed so that you don’t pay more than is necessary to complete an authentication but at the same time don’t damage customer experience or introducing more risk than is acceptable.
  • Use a single platform to orchestrate all authentication to achieve economies of scale and reduce duplication of effort.
  • Integrate with transaction risk analysis, including the FICO® Falcon® Platform and third party TRA systems to ensure effective feedback loops that reduce the occasions when you must perform SCA

Resources

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FICO® Customer Communication Services for Strong Customer Authentication

From September 2019, banks and other payment service providers will be required to use SCA to secure more transactions. This will apply to payments and other nonmonetary transactions where there is a fraud risk.
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Minimal Compliance for PSD2 SCA Will Cost Payment Service Providers More

With any piece of legislation, an organization has to work out how far to go beyond simple compliance with the letter of the law. Payment Services Directive 2 (PSD2) and its associated Regulatory Technical Standards (RTS) is no different. This article looks at compliance with the Strong Customer Authentication (SCA) requirements of PSD2 from the perspective of a payment service provider (PSP) and asks the question: Is it worth going beyond the bare minimum?
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PSD2 Will Strong Customer Authentication Mean You Lose Customers? - United Kingdom

Less than half of consumers say they have a good awareness of the upcoming changes and most people think there are already enough or even too many security checks. Banks that implement SCA badly will lose customers to competitors that do it better.
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PSD2 Will Strong Customer Authentication Mean You Lose Customers? - Germany

Less than half of consumers say they have a good awareness of the upcoming changes and most people think there are already enough or even too many security checks. Banks that implement SCA badly will lose customers to competitors that do it better.