Adaptive Authentication for Open Banking Customer Consents
Abir Ghosh, Indraneel Mukhopadhyay, Subhalaxmi Chakraborty · 2024
Open banking customer consent process needs authentication on the data custodian side. This is an additional authentication for customers in the banking side apart from authenticating themselves in the Third Party Provider’s site. Considering this step of authentication for providing consent, adds some extra seconds in the end-to-end customer journey for providing consent for data sharing. Sometimes rigorous authentication is done for some small ask which may not justify that kind of authentication steps. This customer experience can be improved by implementing adaptive authentication in the data custodian side which will be done based on the exact need of authentication by assessing risk profile based on critical impacting parameters. In this chapter, we have identified these critical factors which need to be considered for implementing adaptive authentication and we have developed a random forest-based supervised learning classification model. Our developed model deals with identified factors and gives a very satisfactory outcome. Identification of these factors is complex as customer is sending request from an outside Organization. Implementation of random forest supervised learning process-based model to identify risk profile of customer transaction makes the approach flexible to address dynamic need for authentication. With improved customer experience, it will further boost chances of acceptance of open banking services among customers. Banks also benefit from this implementation as extra verification and validation steps will be removed from process and consent authentication process will be optimized process.