Why is trust so important in Digital Banking?

Security is the foundational pillar of trust in Digital Banking. But for many users, security measures can feel more of a hindrance than helpful. With fraudsters using more sophisticated approaches and regulations like PSD3 introducing strict new security requirements, banks are challenged with protecting customers without sacrificing a straightforward user experience.

In our latest Tech Tribe podcast episode, G+D Netcetera’s Head of Product Stefan Matheis is joined by colleagues Markus Frauenfelder and Florian Kieninger, both software architects and security experts. Their conversation explores the invisible security battles happening behind the scenes, the evolving threats faced in Digital Banking and how banks can achieve the right balance between safety and seamless user experiences.

• Why security is about more than passwords: Markus and Florian discuss crucial concepts like multi-factor authentication (MFA), step-up authentication and hardening, and explain why these security layers are often misunderstood. They also demystify technical terms like ‘reverse engineering’ and ‘certificate pinning’ to show how these measures work together to keep fraudsters at bay.
   
• Why social engineering is the biggest threat to security: The weakest link in security is often people, not technology. The experts discuss how attackers exploit human psychology, using phishing scams to fake websites, and why even tech-savvy users can fall victim. They also explore the impact of AI, and how it can be used as a tool for fraudsters and a defense mechanism for banks.
   
• How to balance security with user experience: Security shouldn’t come at the cost of convenience. The discussion highlights innovative approaches, such as device binding and behavioral biometrics, that make authentication smoother while [maintaining high security standards]. Florian and Markus share real-world examples of how banks can reduce friction, like eliminating the need for SMS codes, without compromising safety.
   
• How PSD3 will impact fraud liability: With PSD3 quickly approaching, banks are facing new challenges, including a shift in fraud liability. The experts discuss what this means for app developers and customers, and why flexibility in MFA could be a game-changer.
   
• Why ‘waterproof’ security is an illusion: Is perfect security possible? Markus and Florian argue that while no system is foolproof, staying one step ahead of attackers is crucial. They discuss the cat-and-mouse game between security teams and fraudsters, and why trust is built over time - not just through technology, but through thoughtful design and transparency.