Some big steps forward this week toward the future of Online Banking and Mobile Payments. It is always interesting to hear the announcements of exciting new technology to be developed but even better to see actual progress toward making it a reality. Two events marked legitimate progress on the reality scale.
Google Wallet
Google Wallet was released yesterday (Sep. 19th, 2011). While there are currently a limited number of merchants able to accept NFC payments and only one phone capable and supported (Sprint Nexus S 4G) for now it real technology in the real world officially. Right now the wallet can be backed by a MasterCard or a Google prepaid card but will expand to VISA and American Express over time. This is a huge accomplishment for Google and could have big benefits for Google targeted advertising in the mobile space along with Google offers, its Groupon clone.
Bank Simple
Bank Simple has been discussed at OLBB before but it seemed like it would never happen. Bank Simple which will strive to create an entirely new banking experience has gone into private beta. Once again, while not released to the masses, it represents another step forward to hopefully having an alternative to the way banks operate today. Bank Simple promises a Mobile experience built from the ground up, improved service and support, simple communication, putting people first and no surprise fees. We are all hoping for its success.
Tuesday, September 20, 2011
Friday, September 2, 2011
HSBC’s Secure Key: an eBanking milestone or a step too far?
This article is a guest post for the Online Banking Blog(OLBB) by John Ahlberg of Gemalto.
HSBC has come in for some criticism in the UK in recent weeks for its introduction of new security keys for its online banking customers. The credit card-sized keys generate a unique PIN for each time a customer wants to log on to their account, meaning they add an extra, second factor of authentication. This is obviously a good thing for customers’ security, yet it has attracted condemnation from customers frustrated by the lack of mobility it offers.
This once again brings up the age-old trade-off between security and convenience.
Banks are in a precarious position on this issue. On the one hand, they are under greater pressure than ever to do more to ensure the security of their customers, yet on the other are only too aware that these very same customers are averse to any changes which make it more difficult to use the service. Ideally, they need to strike a balance between the two which will provide an adequate, increased level of security, but without it being so inconvenient that customers decide to take their business elsewhere (as is proving to be the case with HSBC’s latest venture).
This is, of course, is easier said than done, but one option for banks moving forward may be to offer a secure mobile app to complement their token authentication systems. One of the criticisms of HSBC’s new system is that it removes much of the freedom that online banking customers have come to expect and enjoy. Offering an additional mobile option would respond to this demand.
However, from a security point-of-view it is hard to criticise HSBC’s efforts to up its game. Vocal though they may be at present, one suspects that, given time to experience the new system, most of those opposed to this heightened security will eventually accept the changes. And those opposed would no doubt be significantly more annoyed were their account to be emptied due to a lack of such stringent measures. That said, there is little point in bringing in these measures if all they achieve is to discourage eBanking altogether.
Given the number of organisations which appear to be adopting a ‘laissez-faire’ attitude towards online banking security, HSBC’s efforts are a breath of fresh air. But they must be mindful that their customers understand this, rather than simply searching for a simpler, and less secure, option.
Tags: HSBC, Secure Key, authentication, online banking, eBanking, security
HSBC has come in for some criticism in the UK in recent weeks for its introduction of new security keys for its online banking customers. The credit card-sized keys generate a unique PIN for each time a customer wants to log on to their account, meaning they add an extra, second factor of authentication. This is obviously a good thing for customers’ security, yet it has attracted condemnation from customers frustrated by the lack of mobility it offers.
This once again brings up the age-old trade-off between security and convenience.
Banks are in a precarious position on this issue. On the one hand, they are under greater pressure than ever to do more to ensure the security of their customers, yet on the other are only too aware that these very same customers are averse to any changes which make it more difficult to use the service. Ideally, they need to strike a balance between the two which will provide an adequate, increased level of security, but without it being so inconvenient that customers decide to take their business elsewhere (as is proving to be the case with HSBC’s latest venture).
This is, of course, is easier said than done, but one option for banks moving forward may be to offer a secure mobile app to complement their token authentication systems. One of the criticisms of HSBC’s new system is that it removes much of the freedom that online banking customers have come to expect and enjoy. Offering an additional mobile option would respond to this demand.
However, from a security point-of-view it is hard to criticise HSBC’s efforts to up its game. Vocal though they may be at present, one suspects that, given time to experience the new system, most of those opposed to this heightened security will eventually accept the changes. And those opposed would no doubt be significantly more annoyed were their account to be emptied due to a lack of such stringent measures. That said, there is little point in bringing in these measures if all they achieve is to discourage eBanking altogether.
Given the number of organisations which appear to be adopting a ‘laissez-faire’ attitude towards online banking security, HSBC’s efforts are a breath of fresh air. But they must be mindful that their customers understand this, rather than simply searching for a simpler, and less secure, option.
Tags: HSBC, Secure Key, authentication, online banking, eBanking, security
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