An article relating to this blog post on Finextra:
Customers don't want authentication devices, says Abbey
Despite continuing security concerns, two thirds of customers do not want their bank to provide chip and PIN-style authentication devices, according to UK high street bank Abbey.
I totally understand that not every customer wants additional security from the hassle point of view but I really think Abbey (and other organisations) are missing a major point.
If 32% of your customers want something is that not reason enough to offer it to them?
Leave the other 68% without any 2nd factor for the time being and see what happens. I bet that a significant proportion of them will move over time to want more security, especially if they themself have fraud issues on their Abbey or other online acocunts.
I am also not surprised that when shown the Chip and PIN style device that people do not want it. There are other devices, such as credit card style tokens with an LCD which generates a OTP which are much more user friendly. There are even ones with a
Challange and response functionality available totally replacing the need for a seperate Chip and PIN reader.