Biometric authentication for corporate banking offers financial institutions an opportunity to improve mobile security while reducing reliance on physical authentication devices. As corporate treasurers increasingly use smartphones to access financial information and conduct transactions, banks are looking for ways to provide the convenience of mobile banking without compromising the additional security requirements associated with enterprise accounts.
Bank of America is addressing this challenge through enhancements to its CashPro Mobile platform, including facial recognition and embedded token technology. The new capabilities can eliminate the need for corporate users to carry separate physical tokens, but adoption may depend as much on individual companies’ security policies and technology environments as on the capabilities of the banking platform itself.
Bank of America recognizes that corporates, especially large corporates, will have a range of issues that will delay deployment of this improved authentication technology, including BYOD security policies, access control systems already deployed, and integration to existing data management systems, as was mentioned in this article from Planet Biometrics:
“Bank of America has revealed enhancements to its CashPro Mobile platform, a corporate mobile banking portal that includes biometrics and embedded token technology.
In an official statement announcing the upgrades, Tom Durkin, Bank of America‘s head of digital channels, said the new features were included in the spirit of easier, anytime access to cash and treasury information.
“Corporate treasurers generally have to carry a bag of these tokens wherever they go,” Durkin said. “Now they have the capability of carrying the token on the mobile phone with the same level of security.”
Biometric technology – including the facial recognition capabilities within Bank of America’s latest enhancements – also addresses the friction linked to physical tokens. But adoption is not guaranteed – at least, not right away, as treasurers take their time getting acclimated to new technologies.
Durkin noted to PYMNTs that Bank of America anticipates this, and has developed these platform upgrades to support those professionals who want to continue using physical tokens until they are comfortable with biometrics.
Another factor that could slow adoption of biometrics in mobile corporate banking is the fact that companies have to build security policies that support and complement the technology – particularly, said Durkin, as it relates to BYOD, access control and tiered access decisions: Who has access to the firm’s mobile banking platforms, and how deep does that access go?
“A lot of companies support BYOD to work, and the mix of work-related activity on the same mobile device,” he said, adding that any concerns about biometric adoption are “more around policy and how you adjust where the company is.”
The enterprise must balance the embracing of tools that promote ease of use with this ever-rising need for security. But Durkin noted that as Bank of America continues its investment in biometrics, the FI sees a solid place for security technology in corporate mobile banking.
As treasurers continue to rely on mobile devices for banking and transacting, Durkin said that the bank will focus on promoting digitization for corporate customers and embedding new functionalities into the mobile screen. Again, the inspiration comes from the world of consumers: The ability to sign a receipt on a mobile screen at checkout via Square, for instance, is a capability that has potential in the corporate world, too.”
The new app also supports document scanning and uploading, a feature that may be more easily adopted into existing business practices.
Biometric authentication has the potential to make corporate mobile banking more convenient, but implementing it within a large organization is more complicated than simply enabling a new feature. Corporate security policies, BYOD programs, access controls, and existing authentication processes must all be considered before companies can transition employees from physical tokens to biometric alternatives.
Bank of America’s decision to continue supporting physical tokens alongside its newer authentication methods recognizes that corporate customers will adopt these technologies at different speeds. Providing both options allows organizations to introduce biometric authentication when their security policies and employees are ready rather than forcing an immediate transition.
Other mobile capabilities, such as document scanning and uploading, may face fewer organizational barriers and provide more immediate opportunities to streamline treasury workflows. Together, these features demonstrate how corporate mobile banking can evolve beyond basic account access toward supporting a broader range of treasury activities.
As mobile devices become more important to corporate financial operations, banks will need to balance usability with the more complex security and access requirements of enterprise customers. Biometric authentication for corporate banking could ultimately reduce friction and improve access, but successful adoption will depend on giving businesses sufficient flexibility to integrate the technology into their existing security environments.
Overview by Tim Sloane, VP, Payments Innovation at Mercator Advisory Group
