The Importance of Identity Analytics in Financial Services

In today’s digital age, financial services (FS) institutions are facing numerous challenges when it comes to identity analytics and behavior analysis. The threat of anomalous access patterns and transactions looms large, putting sensitive data at risk. In this article, we will explore the significance of robust cybersecurity measures, regulatory compliance, and identity management in preventing financial losses and protecting customer information.

Key Challenges in Financial Services

Regulatory Compliance

Financial services institutions must adhere to rigorous regulatory requirements, such as:

• Know Your Customer (KYC): Verifying customer identities to prevent money laundering and other illicit activities
• Anti-Money Laundering (AML): Detecting and preventing suspicious transactions
• Privacy regulations like GDPR and CCPA: Protecting sensitive customer data

Entitlement Sprawl and Management

The complexity of managing access rights and entitlements increases security vulnerabilities, making identity theft and fraud a significant concern.

Identity-Focused Attack Surface Management

The lack of standardized authentication approaches across FS institutions complicates user experience and security protocols, leading to increased cyber risks.

The Rise of Deepfakes

The ease with which bad actors can alter content threatens businesses in virtually every industry and sector, requiring appropriate computing power, forensic algorithms, audit processes, and talent to combat this threat.

Improving Security and Experience

Balancing convenience with security using tools like biometric authentication, Single Sign-On (SSO), and Multi-Factor Authentication (MFA) can enhance the customer experience, leading to increased engagement and loyalty.

Security Monitoring

FS institutions can leverage identity analytics to detect fraud and protect customers and assets, serving as a key differentiator in the market.

Addressing Challenges with KPMG Professionals

KPMG professionals can assist financial services organizations by:

1. Assessing their cybersecurity program and ensuring it aligns with business priorities.
2. Developing advanced digital solutions to meet evolving needs.
3. Advising on the implementation and monitoring of ongoing risks.
4. Designing appropriate responses to cyber incidents.

Technology Solutions from KPMG

KPMG professionals can also provide a range of technology solutions, including:

• Cyber cloud assessments: Identifying vulnerabilities in cloud-based systems
• Privacy automation: Streamlining privacy processes and compliance
• Third-party security optimization: Ensuring third-party vendors meet security standards
• AI security: Detecting and preventing cyber threats using artificial intelligence
• Managed detection and response: Responding to and containing cyber incidents