SAN DIEGO—Expect more anti-money laundering (AML) fines next year and data breaches to rise due to outdated security practices, according to Mitek.
The company has unveiled its top five predictions for the financial services and mobile industries in 2017.
Mitek’s 2017 predictions were formulated after speaking with many of the leading global financial institutions, observing the changes in the regulatory landscape, and studying the mobile preferences and economic impact of Millennials.
Mitek’s predictions for 2017 include:
AML Fines Pack a $5-Billion Punch
- AML laws are gaining strength and Mitek predicts more than $5 billion in fines will be levied on financial institutions globally in 2017 due to AML violations.
More than 1 Billion Consumer Records Breached
- Security practices that rely on knowledge-based authentication are rapidly weakening and data breaches are increasing. Mitek predicts there will be more than one billion consumer records breached in 2017 – finally causing many companies to abandon the password for good.
Mobile Deposit Saves Banks $1 Billion
- With remote mobile deposit capture usage expected to grow globally, Mitek predicts that the technology will deliver more than $1 billion in savings through reduced operational costs for financial institutions in 2017.
Millennials Move Mobile Mortgages Mainstream
- Millennials represent 35% of all home buyers and research shows they have a strong desire to apply for mortgages via mobile. Mitek predicts Millennials will originate more than $30 billion worth of mortgage applications through the mobile channel in 2017.
Selfies Used In $3 Billion Worth of Mobile Transactions
- Recent research shows that there is an enormous unmet demand among Millennials for using selfies in mobile commerce. Mitek predicts that more than $3 billion mobile commerce transactions in 2017 will incorporate selfies for authorization or authentication.