NatWest Targets PSD2 Compliance with Visa’s Behavioral Biometrics Tech

NatWest will be piloting a behavioral biometrics solution from Visa that will satisfy the incoming PSD2 requirements for Strong Customer Authentication. Those requirements will go into effect in 2021, and will force financial institutions to implement an additional layer of security to protect their customers. 

The new NatWest system could be deployed alongside one-time passcodes to provide that strong security while eliminating the need for more traditional passwords. Like other behavioral biometrics platforms, Visa’s tech analyzes characteristics like typing speed to create a trusted user profile. It can then identify any unusual behavior that deviates from that norm, which could in turn point to the presence of a fraudster.     

Visa’s solution will eventually be available through its end-to-end VCAS authentication solution. NatWest will be the first bank to test the technology with an eye towards PSD2 compliance.

“Visa is committed to working with its partners to develop innovative technologies that remove friction for cardholders, increase security and satisfy regulatory requirements,” said Visa’s Managing Director for the UK and Ireland, Jeni Mundy.

“We continue to explore biometrics and how they can be used to make payments easier and simpler for our customers,” added NatWest Strategy and Innovation Director Georgina Bulkeley. “The success of a pilot of this new technology demonstrates our ongoing commitment to developing innovative ways of enhancing customer experience while prioritizing security.”

The trial reaffirms NatWest’s interest in biometric authentication technology. In 2019, the bank carried out a biometric card trial that utilized fingerprint recognition to raise the payment cap on debit and credit cards. That trial was carried out in collaboration with Gemalto, and was conducted with cards that featured a fingerprint sensor from FPC.   

Previous reports have predicted that PSD2 will accelerate the adoption of biometric authentication technology. The extended deadline for SCA compliance for organizations in the European Economic Area is December 31.

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June 15, 2020 – by Eric Weiss