Blair: For people that aren’t familiar – give us 140 characters or less about what InAuth does?
MIKE: InAuth delivers device identification, risk detection, and analysis to help organizations limit risk, friction, and reduce fraud within their digital channels.
Blair: Does InAuth solve a problem or address an opportunity people already know they are facing, or does do it provide an opportunity they may not yet considered?
MIKE: InAuth addresses opportunities that organizations know they are facing. Companies know that they need to enhance the digital experience, increase revenue, create loyalty, reduce operational costs, and create a more secure digital experience.
By implementing authentication and real time fraud detection and decisioning at the point of access – the mobile device – companies can mitigate potential fraud before it happens and create a more frictionless customer experience, reducing fraud losses and building customer loyalty.
With the right security in place, companies can build their own branded optimal customer experiences, and preserve ownership of the customer relationship.
And companies want to retain access to valuable customer insights. Data provides such insights for running your business more efficiently and profitably. The ability to study and predict customer behavior to tailor product offers and retain your relationships is predicated on the volume, quantity and freshness of information at-hand. It’s crucial for FI’s and merchants to understand customer preferences and qualifications so that they can target offers to increase a customer’s “sticky” factor, as well as their satisfaction.
The best possible security is also necessary to assure a position of trust and authority. Deep risk assessment for devices transacting through mobile applications will enable merchants to mitigate against fraud and digital attacks, while offering customers a frictionless payment experience.
As mobile adoption continues to play out in coming years, tremendous opportunities for income growth and increased consumer share of wallet will present themselves. I think most companies are aware of these opportunities and just need to know how to achieve them.
Blair: Tell us a little bit about yourself – where are you from and what are some aspects of your background that led you to where you are in InAuth?
MIKE: I am originally from Boston but I’ve spent the last 15 years in Northeast Florida. I spent many years in key roles within financial services, consulting, and Fortune 500 companies, specializing in security and technology leadership.
Just prior to joining InAuth, I served as a Senior Vice President for Bank of America, responsible for Authentication Strategy. That role covered customer protection, and online and mobile security strategy. With mobile security being a new field, and with the predicted growth of mobile at the time, it seemed like a great opportunity join an innovative mobile first security company.
Blair: What do you do for InAuth and what are you working on right now that you can tell us about?
MIKE: In my current role as Chief Strategy Officer, I get to see a lot of the next trends in innovation, and provide input on what the best practices are to secure those innovations. I also have the pleasure of overseeing many of our marketing and PR efforts.
We’ve just rolled out recently our first integrated biometric feature. Because InMobile Biometrics is delivered through our InMobile solution, our customers receive the added benefit of comprehensive device integrity screening, where we uncover high-risk factors and anomalies that can be clear indicators of a fraudster working behind the scenes. InMobile also performs application validation to confirm the integrity of the mobile app by identifying potential tampering.
And we continue to build out “defense in depth” on our core Mobile and Browser platforms.
For example, we are enhancing our next generation browser ID which leverages advances in machine learning, data analytics, and statistical analysis to provide an enhanced browser print. It delivers superior print life and longevity, is not reliant on cookies, and is resilient through IP changes, common IPs, font changes and screen changes. Having a trusted device identifier allows businesses to recognize and differentiate returning devices with confidence.
This enhancement also helps us defend better against BOTS. Bots have become a primary tool for fraudsters across the globe. To prevent bot and botnet attacks, InAuth delivers the ability to detect a key indicator of a potential bot attack: velocity—devices taking multiple, unusual actions. Our next-generation persistent browser ID can detect key indicators such as a high number of attempts or failures, unusual traffic patterns, unusual speed of access and access attempts.
Blair: What’s a favorite customer success story that you can share?
MIKE: A leading financial services company with a proud history of helping people achieve financial security was unable to deliver the client experience they promised due to limitations with their legacy browser security solution.
As a “web-first” operation, the firm’s customers rely heavily on the company’s website via a customer login portal to aggregate, view and manage their entire net worth. Due to challenges with integration between their legacy browser authentication system and their login system, clients were experiencing excessive lag times—often as long as 10 seconds—from the time they entered their password until gaining entry to the site. The lag time, as well as unstable uptime availability, was taking its toll on customer satisfaction, as complaints continued to increase. At the same time, the company was undertaking an enterprise-wide initiative to move all in-house applications, particularly client-facing services, to the cloud to deliver a wide range of customer benefits including availability.
With over three-quarters-of-a-million customers accessing the website on a regular basis, the firm reached a tipping point and needed a scalable solution that delivered the highest level of security, while preserving, and even enhancing, the consumer experience by removing friction along various client touchpoints.
Fortunately, the company chose InBrowser as their solution.
In addition to the technical implementation which included customizations and seamless interfaces to the firm’s existing systems, InAuth also worked closely with the company’s internal resources to smooth out the learning curve involved with using the new solution. After a few calls, the firm’s users were up to speed quickly and easily.
After deploying InBrowser, the firm now consistently achieves 1 second (or faster) login times and 99.9 percent uptime—far exceeding expectations. The company’s reduction in login time is a tangible win, yet did not sacrifice security.
Blair: Most businesses have either a competitor or they are a replacement for something that’s already in place, or both. What makes InAuth different – why are people buying it?
MIKE: A lot of our competition took a legacy PC solution and tried to port it to a mobile solution, with poor results. InAuth was quite different. InAuth was born mobile, and initially focused on mobile security and permanently recognizing a mobile device. That organic growth in mobile led to the deepest mobile device intelligence possible.
With the explosive growth in mobile and innovative new solutions for mobile, companies are now turning to InAuth primarily for our mobile expertise, although we also win business on our PC based solution as well.
Blair: Looking out 12, 24, 36 months, how do you think the world will be different, and what will people be saying about InAuth?
MIKE: I think Mobile will continue to transform how consumers buy & transact – how they conduct their lives. Mobile commerce is growing at a rate of 300% according to sources. Expectations are half of our online sales will be mobile-based in just a couple years.
I also think we will see greater adoption in Mobile Wallets.
With nearly 5 billion people worldwide using mobile phones, it is inevitable that mobile wallet adoption will increase year over year. The ability for consumers to carry credit or debit card information in digital form on a mobile device and make purchases with it is causing the payments industry to sit up and take notice of new opportunities—but also brace for a new wave of fraud.
According to McKinsey & Company, mobile wallets currently facilitate approximately $300 billion in transactions within the U.S. The research firm is predicting that this volume will expand to $1.2 trillion by 2020 to comprise 18-20% of total U.S. retail spending.
Also, we will see continued use of Mobile for other forms of payments such as P2P payments.
According to a recent report from Aite Group, digital peer-to-peer (P2P) payments increased 47 percent in the U.S. last year to a transaction volume of $147 billion – up from just over $100 billion in 2015. The report suggests that at current growth levels, transaction volume will reach nearly $317 billion by 2020 (Digital Person-to-Person Payments in the U.S.: A Strong Growth Game, March 16, 2017).
The Internet of Things will grow at a staggering pace and be a vehicle for new ways to transact.
According to Gartner, approximately 5.5 million new IoT devices are connected each day in 2016, an increase of 30 percent from 2015, bringing the worldwide total to 6.4 billion connected things for the year. If currently growth rates hold, the number of connected devices is expected to reach 20.8 billion by 2020. That’s almost three devices for every person on Earth.
Within a few years, a consumer will be able to tell a voice-activated device to purchase household items – and the device will know exactly what to order and how to pay for it. The same thing will occur in our cars and in other places that will house “smart speakers”. And wearables will also begin to catch up to other digital platforms. These new input devices will drive new ways of commerce.
Blair: Giving you the final word – in your own words, what’s one thing you wish everyone knew about InAuth and what you are doing for customers.
MIKE: I wish everyone knew the best practices for defending mobile and that once those best practices are employed, that Mobile can be the safest platform to transact on. However, without those, there are serious risks that are going undetected in mobile solutions.