Persistent Systems has announced an agreement with the USAA insurance and financial services company for development rights to patented security intellectual property currently owned by USAA for use in financial services.
Persistent builds customized software for enterprises and software product companies so they can move to new levels in the rampant digital transformation trend.
San Antonio-based USAA, a Fortune 500 financial services provider that serves members of the military and their families, has been an innovator in securing authentication and financial transactions through a process that extends beyond user passwords and security questions. The deal was announced Feb. 28.
The development and intellectual property rights granted to Persistent originate from innovations that USAA uses to identify and verify members while also protecting their privacy.
Persistent plans to use the patents and security algorithms USAA developed to detect fraudulent activity on its customers' accounts using an authentication system that considers risk and previous activity beyond passwords and even biometric scanning.
Persistent also will extend these technologies and focus on authentication and security solutions based on concepts such as micro-trust, risk-aware, contextual, and personalization in conjunction with technologies related to biometrics, risk modeling and dynamic proofing.
For example, the new software ostensibly can alert a financial institution when a customer makes a large cash withdrawal from an ATM far outside the customer's home city. However, instead of declining the suspicious transaction, the organization can require a second layer of authentication to approve the withdrawal.
The second authorization could be a biometric measure, such as a fingerprint, voice or face recognition, and even a reading of the customer's heart beat — a so-called "heart print."
Persistent Systems plans to roll out the technology in its FY 2018. The company is aiming for midsize customers in the financial services sector in addition to health care institutions looking for ways to prevent unauthorized access of customer accounts.
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