Implementing MFA & SSO for Banks and Large Financial Institutions

Every day, thousands of financial transactions occur within banking systems, from employee access to core banking applications to customers logging in through digital channels. Yet behind this convenience lies a major threat: unauthorized access caused by weak credentials or single-layer authentication without additional security controls.

This is why implementing MFA and SSO for banks and large financial institutions has become a strategic requirement. These technologies protect system integrity, secure customer data, and support compliance with global regulations such as GDPR, ISO 27001, and OJK IT Risk Management.

Why Banks Need MFA and SSO Now

Financial data is one of the most valuable targets in the cyber landscape. According to the IBM Cost of a Data Breach Report 2024, the financial sector ranks second in the highest average data breach cost, reaching around USD 6 million per incident.

Most breaches occur due to stolen credentials, reused passwords, or manual authentication systems without layered controls.

Banks must balance two critical needs: security and user convenience. The solution is the adaptive implementation of Multi-Factor Authentication (MFA) and Single Sign-On (SSO) across all internal and external systems.

What Is MFA and SSO in the Banking Context?

MFA (Multi-Factor Authentication) adds an extra layer of protection by requiring more than one verification factor such as passwords, OTP tokens, or biometrics.

SSO (Single Sign-On) allows employees to log in once and access multiple internal systems such as core banking, CRM, HRIS, and audit applications without juggling multiple credentials.

📌 Note: In the banking environment, MFA and SSO are usually integrated with an IAM (Identity & Access Management) system to ensure role-based access control (RBAC).

Identity Security Challenges in the Banking Industry

Banks face unique challenges such as:

• Complex systems spanning operations, credit, treasury, and more

• Insider threats due to highly privileged access without granular restrictions

• Stringent regulatory audits from OJK, ISO, and external auditors

• Digital banking and cloud adoption that introduce new risk vectors

Without a mature IAM system, managing thousands of user accounts becomes a major security vulnerability.

Benefits of MFA & SSO Implementation for Banks and Financial Institutions

1. Protecting Customer Data and Transactions

MFA ensures only authorized staff can access sensitive systems like core banking, reducing internal fraud and data leakage.

2. Improved Internal Access Efficiency

With SSO, operational staff and risk analysts can switch between internal applications seamlessly without repeated logins.

3. Regulatory Compliance

MFA and SSO support compliance with GDPR and ISO 27001 while strengthening audit controls required by OJK.
Refer to the official guidelines at the European Commission – GDPR Portal.

4. Enhanced Cyber Resilience

MFA reduces phishing and credential theft risks, while SSO minimizes password reuse and shared credentials.

5. Scalable for Multi-Branch Banking

Adaptive IAM systems can be deployed across regions while maintaining centralized security standards.

Adaptist Prime: IAM Solution for Banking Security and Compliance

Adaptist Prime is an Identity & Access Management (IAM) platform designed for large enterprises such as banks, financial institutions, and fintech organizations. The platform integrates MFA, SSO, and role-based access control into one centralized system to secure the entire banking ecosystem.

Key Features of Adaptist Prime

• Multi-Factor Authentication using tokens, biometrics, and adaptive authentication

• Single Sign-On for both on-premise and cloud applications

• Role-Based Access Control (RBAC) with granular permission settings

• Automated Audit Trail to meet OJK and ISO requirements

• Flexible integration with core banking, CRM, and other internal systems

With Adaptist Prime, banks can strengthen identity security while improving operational efficiency without compromising regulatory standards.

Case Study: National Bank With Thousands of Internal Users

A major Indonesian bank struggled to manage thousands of employee accounts across branches. After implementing Adaptist Prime:

• System login time decreased by 50%

• Internal audits were shortened from 10 days to 3 days

• No unauthorized access violations occurred for an entire year

Conclusion

In modern banking, data security is not just a regulatory obligation but a competitive advantage. Implementing MFA and SSO for banks and financial institutions ensures system security, regulatory compliance, and long-term operational efficiency.

With Adaptist Prime, banks can manage digital identities securely, efficiently, and seamlessly across all systems, creating a solid foundation of trust for customers and regulators.