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Does API handle customer login/passwords?

We're looking to store client information so that customers can login in the future and we can pull up their information to pre-populate form fields.  I see in the API how to store client information (email, address, etc.) but without a login/password there's no way to securely associate this information with a user on a repeat visit.  The lack of these fields in the TE API leads to me believe that we have to create our own database with these fields (login,pass,salt,etc,) as well as a client_id field that links our customer login to the TE client record?  

If the TE client records has a couple of custom fields we could get around the requirement of having a database since essentially this would be "outsourced" to TE.

Thanks in advance for any advice.

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