19 April 2014

PCarroll

Pat Carroll - ValidSoft

69 | posts 243,565 | views 37 | comments

Innovation in Financial Services

A discussion of trends in innovation management within financial institutions, and the key processes, technology and cultural shifts driving innovation.

ID Theft is number 1 security concern for consumers

21 October 2012  |  4566 views  |  1

This week ACI Worldwide released their global survey which finds that a quarter of people across the 17 countries reviewed have been affected by card fraud during the past five years. In particular, 42% of Americans and 34% of Brits admitted they have fallen victim.

From this research I found two insights of interest: firstly that identity theft replaces credit card fraud as the greatest concern from fraud exposure, with 49% admitting they are very concerned about possible harm to their financial standing and rating. Of course, identity theft can lead to credit card fraud, so in reality it is perception. Secondly, customers believe that receiving notifications from their bank of unusual activity on their accounts/cards is paramount to good customer service, with people’s preference to be alerted on their mobile phones marking a move away from the 2011 trend of being notified via their home phones.

With immediate notification and action now demanded by customers, it’s good to see there’s a step in the right direction with some banks now notifying customers of any change via mobile phone. By doing so it enables new invisible techniques like Proximity (Proximity Correlation Logic) and voice biometrics to be used for authentication across all electronic and cards transaction channels. On the other hand, it can also have negative consequences: fraudsters will be quick to take advantage of the mobile phone as a means of spear-phishing; fraudster sends SMS informing customer that a transaction has occurred and to ring the number in the SMS if not correct. Such a message may induce the customer to call the number and end up speaking to the fraudster.

As the world moves to a more mobile centric and real-time environment, paying anytime, anywhere using a smart phone or tablet, it’s not surprising that preferences on how a bank contacts their customers is moving in the same direction. This is another step in the convergence process; the same device, with regard to banking, transacts, protects and communicates. Ultimately we need to get to a situation where the authentication process is “invisible” and the customer is never contacted unless something is wrong. Mutual authentication and voice biometrics will take care of the rest!

TagsSecurityPayments

Comments: (1)

Michael Nuciforo - Keatan - London | 21 October, 2012, 14:34

A banks operating model is still based on the premise that customers contact banks, not the other way around. It's as if banks have forgotten that they can contact customers anytime, anywhere due to mobile devices. They have only started to leverage this capability but as you allude to, there will be more opportunities to utilise this moving forward.



Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Latest posts from Pat

How do we achieve 'The Holy Grail' in contactless payments?

28 February 2014  |  1908 views  |  0  |  Recommends 0 TagsMobile & onlinePaymentsGroupInnovation in Financial Services

Malware , the Achilles Heel of Mobile Adoption

30 January 2014  |  2184 views  |  0  |  Recommends 0 TagsMobile & onlinePaymentsGroupInnovation in Financial Services

Customer Experience vs Strong Security: What's the Answer?

28 January 2014  |  1789 views  |  0  |  Recommends 0 TagsMobile & onlinePaymentsGroupInnovation in Financial Services

Predictions for 2014: Voice Biometrics Go Mainstream? Part 2

24 January 2014  |  2056 views  |  0  |  Recommends 0 TagsSecurityMobile & onlineGroupInnovation in Financial Services
name

Pat Carroll

job title

Founder/Executive Chairman

company name

ValidSoft

member since

2011

location

London

Summary profile See full profile »
Throughout his career, Pat has been at the forefront of industry thinking, representing organisat...

Pat's expertise

What Pat reads
Pat writes about

Who is commenting on Pat's posts

Andrew Smith
Ketharaman Swaminathan
Nigel Beatty