This paper examines the evolution of Identity and Access Management (IAM) systems in financial services, focusing on the transition from legacy architectures to modern authentication frameworks. Through a detailed analysis of ETRADE’s transformation as a primary case study, the article explores the challenges and solutions in implementing contemporary authentication methods, including OAuth 2.0, OpenID Connect, and Multi-Factor Authentication. The study investigates the impact of emerging technologies such as AI-driven authentication, blockchain-based identity solutions, and passwordless authentication on security effectiveness and user experience. By analyzing implementation strategies, security-usability trade-offs, and regulatory compliance requirements, this article provides insights into successful IAM modernization approaches while highlighting future trends in financial services authentication.
Keywords: AI-driven security, blockchain identity, financial authentication, identity and access management (IAM), multi-factor authentication
