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Six predictions for financial services in 2021

data, which could be the catalyst for open bank-
ing in America. Canada recently announced plans
to develop a framework for open banking referred
to as consumer-directed finance. In Latin America,
Mexico, Brazil, Colombia, Uruguay and Chile are all
at various stages.
4. Facial recognition will drive the greatest changes
to banking regulations: As banks increasingly use
facial recognition technology for identity verifica-
By Michael Magrath tion requirements, they are housing large amounts
OneSpan of consumer biometric data.
5. Many COVID-19 driven actions implemented
OVID-19 has created a sea change across to sustain commerce will become permanent: In
enterprises with respect to remote work and the United States, several governors, including the
a push for digitization. Financial services, and governor of New York, permitted the use of remote
C specifically banking, experienced the most dis- online notarization in 2020 via executive order.
ruption, with an accelerated innovation road map that We predict this secure and convenient technology
digitized once manual processes including account open- will be permanently permissible, post-pandemic
ing, lending applications, mortgage closures and more. through legislation.
6. Government agencies will continue to expand
However, with the rush to digitize, security was often an data access for private sector organizations to ver-
afterthought. Bad actors took advantage of the new breach ify the identity of prospective customers: The U.S.
opportunities found within increased digital banking Social Security Administration's electronic Consent
platforms and, as a result, we saw a surge in systemic Based Social Security Number Verification (eCBSV)
fraud over the course of the year. This was a key learning service is just the beginning. Other agencies at the
in 2020, and many financial institutions implemented new federal and state level, which historically have been
digital technologies like facial recognition and biometrics
TouchSuite Is Looking to better identify and stop fraud the authoritative source to establish identities, will
begin to offer similar services using passport data,
current mailing address, driver's license data etc.,
To Buy Quality Portfolios With a brighter future ahead, here are my top six predic- thereby strengthening the identity verification pro-
tions for the financial services sector in 2021:
cess and reducing fraud in industries such as bank-
1. Remote account openings will gain traction world-
gambling.
wide: Regulators in Hong Kong, Pakistan, Greece, ing, brokerage, insurance, healthcare and online
Macedonia, Mexico and Turkey approved remote
We pay top dollar for First Data, TSYS, Elavon, and bank account openings in 2020—a clear indicator As technology continues to advance in the financial ser-
Nuvei merchant processing portfolios with a high that even processes rooted in traditional face-to-face vices industry, banks, credit unions and other financial or-
certainty of closing meetings in the branch are now going digital and ganizations must find the right balance between adopting
innovative technology while keeping security a priority
touchless around the globe.
2. Regulation is on the way for cryptocurrencies: As for their customers. Understanding and following current
regulations and security best practices are good places to
For a complimentary valuation, please call our dedicated digital banking platforms have experienced mas- start to ensure that these institutions are held accountable.
sive growth, many governments and industry bod-
team or email us at acquisitions@touchsuite.com ies worldwide have begun to look to Central Bank
Digital Currencies (CBDCs) and cryptocurrencies in However, I believe that we're already seeing a positive
shift in how financial organizations are treating and fol-
terms of what they might add to the financial sector.
This has resulted in new and refreshed conversa- lowing current security measures. I also think this trend
will carry on into 2021, as financial organizations begin to
tions around the possible uses of CBDCs and cryp-
tocurrencies. adopt innovative technologies such as facial recognition,
digital identities and cryptocurrency to enhance the cus-
3. Open banking will grow rapidly throughout the tomer experience.
Transparent Fast Transaction world: As third-party providers (TPPs) are allowed Michael Magrath, director, global standards & regulations at OneSpan,
Structures Closing Expertise to use banking information to help consumers is responsible for aligning OneSpan's solution roadmap with stan-
save money, borrow more easily and pay efficient-
ly, banks will increasingly work with TPPs. In the dards and regulatory requirements globally. He is co-chair of the FIDO
United States, the Consumer Financial Protection Alliance's Government Deployment Working Group and is on the Board
Board issued an Advanced Notice of Proposed Rule- of Directors of the Electronic Signature and Records Association. For
touchsuite.com (844) 453-8422 making on consumer authorized access to financial more information, please visit www.onespan.com.
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