1. Digital banking security: Are biometrics a real option for banks?
Mapa Insight Series
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Contents
1. Report objectives and methodology
2. Sample pages from the report
3. Mapa insight series: Report schedule 2014
4. Contact details
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2. Report structure:
A.
Objectives and methodology
B.
Executive summary --------
1.Learnings from previous editions 2. Login security and authentication 3. Other areas of development 4. Keeping customers up-to-date 5. Biometric solutions -------- C. Conclusion
Objectives:
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Highlight key developments over the last 12 months
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Pinpoint key trends
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Focus on showing examples and developments standing out for being innovative, unique or different in some way.
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The report is split into the following four sections
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Login security and authentication
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Other areas of development (including pre-login and card related features and more)
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Keeping customers up-to-date
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Biometric solutions This report will feed into internal planning processes by providing strategic understanding of what is happening in the marketplace. Furthermore innovative examples and approaches can be used to gain inspiration as well as strengthening existing business cases.
Methodology:
We have conducted logged in research of more than 40 banks across 10 countries utilising the portfolio of live accounts that we have access to. Also, we have conducted desk research to uncover related news as well as other developments of interest. Our findings are summarised in this report, providing in-depth insight of a number of innovative banks across the globe.
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Report objectives and methodology
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3. 2. Sample
pages from the report
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4. 2
Login security and authentication: Tie app to device
Following a June app update Handelsbanken (SE) now requires customers to tie the app to the device as part of a one-time set-up procedure. On the login page the bank states that ‘in order to get access to all features you need to activate the app’. The process is completed by providing an authentication code using a card and card reader which is used for internet banking. Once completed you can now pay non-existing payees just by logging in with a four digit PIN code. Do note the difference in daily limits for paying non- existing / existing payees: 1,000 / 5,000 EUR. Overall, this is a good example of a simple one-off procedure enabling more access to features while still keeping the login process unchanged, hence keeping a smooth customer experience.
Activation page – choose between using a card and card reader or an activation code picked up in a branch
Login page
Activation using card and card reader
Background: This implementation is a result of the Swedish Data Inspection Board doing a spot check last year on three different banks in Handelsbanken, Nordea and Danske Bank. The investigation found that there was a real risk that fraudsters can quickly get access to customers’ account and card details just by getting hold of a customers’ Personal ID number and a four digit PIN (which is required to login). As a result all three banks have all now done similar app updates.
In order to get access to all features you will need to activate the app. This process is completed once on every device you want to use. During a transition period you can choose to activate at a later date.
October 2014 – Page 4
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5. Using the slogan ‘Lock, Block and Limit’ Commonwealth Bank (AUS) has introduced the option lock your credit card for certain transactions such as in-store and online international payments or blocking ATM cash advances and putting spending limits on transactions. These features are accessed when selecting the Settings icon from the card overview and do not require any additional authentication. This empowers you to better control your card transactions and helps to create peace of mind.
Building on this we also want to highlight ING (NL) who now gives the option to unlock a card for transactions taking place in Europe as well as a ‘World’ option. There is a To and From Date option, making it an ideal tool in relation to vacations abroad and meaning that the customer does not have to login and lock the card again upon return.
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Mapa comment:
Other banks such as Bank of America and Westpac (AUS) have introduced similar a feature in enabling travel notifications. This makes the bank aware of where the customer is, hence helps to reduce the time spent by banks investigating potential fraudulent transactions.
These types of card related features are getting more and more common and this builds on to a trend we picked up already in last year’s report.
ING (NL)
Other areas of development: Locking your card for certain transactions
October 2014 – Page 5
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6. October 2014 – Page 6
Bank of America has introduced a similar security measure to that one shown from Jyske Bank on the previous page. Early in 2014 customers were informed of a new ‘Verify Account Activity’ measure – communicated on an interstitial login page to internet banking. Customers clicking ‘Learn more’ are informed that if you receive a fraud alert (email, phone call, text message or push notification) now immediately can sign in to internet banking and either verify the transaction or report it as fraudulent.
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Keeping customers up-to-date: Added security when suspecting fraud
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7. Earlier this year Westpac (NZ) announced that they were testing fingerprint scanning technology for login to mobile banking. The bank described it as a ‘world first”, customers would no longer have to provide your username and password. Similar to PayPal this will only work on Samsung Galaxy S5 devices. The primary objective is to improve the mobile experience for customers who sometimes struggle to type passwords into palm-sized devices. Link to video demonstration: bit.ly/1gVhIcV
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More insight:
The fingerprint-based security will work with a new internet banking environment the bank is developing, alongside a mobile app wrapper that will let the web pages work well on smartphones.
"We're making sure when we put this in the hands of customers we can feel confident that it's robust and secure," says Pomeroy (chief digital officer).
"The thing that blows me away is how simple it is to set up and use to get into your mobile banking app," he says. "That's the whole point. As a bank, we're looking for an easier way for customers to do mobile banking."
He envisions offering the same fingerprint-based security on other devices as they come on the market.
"This plays into the whole reason why devices are being enabled with finger and thumbprint access, because customers are demanding it and adopting it," Pomeroy says. "When we think about mobile banking, it's all about driving it through customer adoption."
Source: bit.ly/X6dhcM
Biometric solutions: Fingerprint
October 2014 – Page 7
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8. 3. Mapa insight series:
Reports schedule 2014
October 2014 – Page 8
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9. Introduction to the reports:
These eight reports (two per quarter) are aimed to cover key hot topics within the field of digital financial services. The reports have a global emphasis providing insight into the latest trends and developments.
The reports aims to support investment decisions within the field providing an independent view. In addition they provide as an inspirational resource as well as it helps to increase your overall understanding and awareness of different topics.
3. Mobile banking – state of the market 2014 Three key questions to ask as part of the research 1. What is the current state of play? 2. What innovative ways have banks developed for mobile banking users in the last 12 months? 3. What are the key trends and what does the future hold?
Three key points for the reader to take away: 1. Up-to-date view on developments within the mobile banking 2. Understand where developments take place and key trends
3. Insight into leading initiatives
4. The evolution of digital PFM – 4th edition Three key questions to ask as part of the research 1. What new digital PFM tools have been implemented in the last 12 months? 2. What have leading vendors accomplished over the last 12 months and where do they see the market going? 3. What are the key trends and what does the future hold?
Three key points for the reader to take away: 1. Up-to-date view on developments within digital PFM 2. Understand where developments take place and key trends 3. Insight into leading initiatives
1. Cross channel experiences- state of the market 2014 Three key questions to ask as part of the research 1. To what extent are experiences aligned (look and feel, functionality, security and communication)? 2. What is the current state of play including key challenges? 3. What are the key trends and where are we moving?
Three key points for the reader to take away: 1. Up-to-date view on the current state of play 2. Understand where developments take place and key trends
3. Insight into leading initiatives
2. Tablet banking report series – 6th edition Three key questions to ask as part of the research 1. What are the current tablet banking propositions 2. What are current browser experiences after login like? 3. Are banks utilising sales opportunities at hand?
Three key points for the reader to take away: 1. Understanding of tablet banking propositions 2. A feel for current browser experiences after login 3. Identify to what extent banks have utilised the sales opportunity that comes with tablets
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Mapa insight series: Reports schedule 2014
October 2014 – Page 9
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10. 5. Digital innovations: Selling within digital banking channels – 2nd edition Three key questions to ask as part of the research 1. How do banks utilise the different channels from a sales and marketing perspective? 2. How have approaches evolved over the last 12 months? 3. What are the key trends and what does the future hold?
Three key points for the reader to take away: 1. Understanding of different techniques and approaches used
2. Get a feel for where the market is moving 3. Insight into leading initiatives
6. Digital innovations: Engaging and onboarding business banking customers – 2nd edition Three key questions to ask as part of the research 1. What are banks doing to segment their offerings and make them more relevant and appealing to customers/prospects? 2. What are banks doing to engage customers/prospects and by that draw them into the website? 3. How have techniques and approaches in relation to point 1-2 evolved over the last 12 months?
Three key points for the reader to take away: 1. Understand how retail banks worldwide try to engage prospects in the digital space 2. A review of niche features available to business banking customers 3. Insight into how retail banks worldwide utilise the digital channels to generate new customers
7. Digital banking security report – 3rd edition 3 key questions to ask as part of the research 1. What innovative and different initiatives are currently available? 2. How will these initiatives affect the customer experience? 3. What are the key trends and what does the future hold?
3 key points for the reader to take away: 1. Up-to-date view on developments within the field 2. Understand where developments take place and key trends 3. Detailed insight into activity from banks worldwide
8. The evolution of point-of-sale mobile payment services – 3rd edition 3 key questions to ask as part of the research 1. What is the current state of play of the mobile payments market in relation to edition 1-2? 2. What new services have come to market (and being scrapped) in the last 12 months? 3. What are the key trends and what does the future hold?
3 key points for the reader to take away: 1. Up-to-date view on developments within the mobile payments sphere (point-of-sale only) 2. Understand where developments take place and key trends 3. Insight into a range of innovative and different initiatives
Mapa insight series: Reports schedule 2014
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Next steps:
If you are interested in finding out more about the reports including purchasing options please do get in touch with Niklas Olsson: niklas@maparesearch.com
October 2014 – Page 10
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11. 4. Contact details
October 2014 – Page 11
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12. Contact details
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Author:
Niklas Olsson
Senior Consultant
niklas@maparesearch.com
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Chairman
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Edward Chatham
Managing Director
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Clare Warren
Research and Operations Director
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13. @ About Mapa
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14. October 2014 – Page 14
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