Skip to main content

Securing Fintech via Mobile User Authentication

The global COVID-19 pandemic accelerated the development and adoption of online digital services, including mobile user authentication services. This led to more Fintech solutions growth at a rapid rate from 2020 to 2022, as companies started to adopt one-touch verification.

These services enable CIOs and CTOs to increase the level of security offered to customers who are concerned about online financial transactions. However, there are numerous other industry use cases that require increased security measures to protect sensitive data.

According to the latest worldwide market study by Juniper Research, mobile network operators will generate $27 billion from the termination of Short Message Service (SMS) related to multi-factor authentication in 2022 -- that's an increase from $25 billion in 2021.

Commercial SMS Apps Market Development

Juniper analysts predict this 5 percent growth will be driven by increased pressure on digital service providers to offer highly secure user authentication that reduces the risk of data breaches and protects user identity.

Multi-factor authentication combines two or more credentials to verify a user or a transaction. This includes sending an SMS message that contains a one‑time password or code to a user's unique mobile phone number.

Juniper also urges mobile network operators to capitalize on the growth in demand for multi-factor authentication SMS traffic, by leveraging firewalls to monitor and identify SMS traffic specifically used for multi-factor authentication.

In turn, savvy mobile network service providers will then be able to charge a premium on this SMS traffic and further increase their business-oriented messaging revenue.

The study findings uncovered that there will be over 1.7 trillion multi-factor authentication messages delivered globally in 2022 -- that's representing 60 percent of the total SMS business messaging traffic.

According to the Juniper assessment, mobile network operators must develop machine learning algorithms that automate the monitoring of this vast amount of traffic to efficiently identify messages that can be charged at a premium.

"Automating traffic detection is crucial for operators as we expect multi-factor authentication traffic to grow to 2.1 billion messages by 2027. SMEs have typically not invested in messaging for security in the past," said Keith Breed, industry analyst at Juniper Research.

However, rising pressure to implement greater security for users will drive adoption amongst small and medium enterprises (SMEs) over the next 5 years, and potentially increase global SMS traffic.

Outlook for Multi-Factor Authentication SMS Growth

To manage this increase in demand for multi-factor authentication SMS messages, Juniper urges mobile network operators to partner with Communications Platform-as-a-Service (CPaaS) platforms. 

These platforms offer the necessary user interface to SMEs to manage authentication processes and subsequent traffic from which operators will attain additional new SMS business messaging revenue.

That said, I believe the speed of adoption also increased for Automated Virtual Assistants. Artificial intelligence can extract information from voice calls to create a series of instructions that answer customer questions more quickly and efficiently. This capability will surely drive new growth.

Popular posts from this blog

Demand for Quantum Computing as a Service

The enterprise demand for quantum computing is still in its early stages, growing slowly. As the technology becomes more usable, we may see demand evolve beyond scientific applications. The global quantum computing market is forecast to grow from $1.1 billion in 2022 to $7.6 billion in 2027, according to the latest worldwide market study by International Data Corporation (IDC). That's a five-year compound annual growth rate (CAGR) of 48.1 percent. The forecast includes base Quantum Computing as a Service, as well as enabling and adjacent Quantum Computing as a Service. However, this updated forecast is considerably lower than IDC's previous quantum computing forecast, which was published in 2021, due to lower demand globally. Quantum Computing Market Development In the interim, customer spend for quantum computing has been negatively impacted by several factors, including: slower than expected advances in quantum hardware development, which have delayed potential return on inve

AI Semiconductor Revenue will Reach $119.4B

The Chief Information Officer (CIO) and/or the Chief Technology Officer (CTO) will guide Generative AI initiatives within the large enterprise C-Suite. They may already have the technical expertise and experience to understand the capabilities and limitations of Gen AI. They also have the authority and budget to make the necessary investments in infrastructure and talent to support Gen AI initiatives. Enterprise AI infrastructure is proven to be expensive to build, operate and maintain. That's why public cloud service provider solutions are often used for new AI use cases. AI Semiconductor Market Development Semiconductors designed to execute Artificial Intelligence (AI) workloads will represent a $53.4 billion revenue opportunity for the global semiconductor industry in 2023, an increase of 20.9 percent from 2022, according to the latest worldwide market study by Gartner. "The developments in generative AI and the increasing use of a wide range AI-based applications in data c

Global Public Cloud Spending to Reach $1.35T

Most digital transformation is enabled by cloud solutions. Worldwide spending on public cloud services is forecast to reach $1.35 trillion in 2027, according to the latest worldwide market study by International Data Corporation (IDC). Although annual spending growth is expected to slow slightly over the 2023-2027 forecast period, the market is forecast to achieve a five-year compound annual growth rate (CAGR) of 19.9 percent. "Cloud now dominates tech spending across infrastructure, platforms, and applications," said Eileen Smith, vice president at IDC . Public Cloud Services Market Development IDC believes that most organizations have adopted the public cloud as a cost-effective platform for hosting enterprise applications, and for developing and deploying customer-facing solutions. Looking forward, the cloud computing model remains well positioned to serve customer needs for innovation in application development and deployment -- including as data, artificial intelligence