21 April 2018
Pat Carroll


Pat Carroll - ValidSoft

79Posts 354,071Views 40Comments
Innovation in Financial Services

Innovation in Financial Services

A discussion of trends in innovation management within financial institutions, and the key processes, technology and cultural shifts driving innovation.
A post relating to this item from Finextra:

Bank of Scotland streamlines app login

24 January 2014  |  7968 views  |  2
Bank of Scotland has revamped its mobile app in a bid to make logging in a hassle-free three click process.

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

28 January 2014  |  3323 views  |  0

It’s good to see the Bank of Scotland focussing on the mobile customer experience. Clearly they see this as a significant competitive advantage, and promoting it as such, whilst also highlighting the security features of their approach. With mobile, streamlining the login process, enrolment and activation is key if banking apps and wallets are to achieve the adoption needed. When it comes to financial services, consumers want convenience. Mobile can deliver a strong value proposition but achieving the balance between a low friction customer experience and “behind the scenes” strong security is vital. What is clearly still lacking is consumer confidence in the security of the mobile environment, and every high-profile attack on the payments industry further dents consumer confidence.  So it doesn’t help at all to read headlines such as “Personal banking apps leak info through the phone” coming rapidly on the back of some of the most high profile data breaches in history. Not scare-mongering – sadly fact.  

Fraudsters are relentless and evolve their methods constantly, and it’s easy to form an opinion that the war is over and they have won. However, some reassurance can be derived from the amount of research and innovation that is being invested in the security sector. The evolution to mobile creates some of the greatest opportunities we have to reengineer process flows and remove traditional opportunities for fraud. Real-time checks carried out in parallel at the point of sale can be used to detect and prevent fraud yet without any apparent linkage of the process flows. Such capability creates very complex layered security models that are very difficult for the fraudster to hijack. And even if one or more layers are compromised, the integrity of the process can be preserved.

Alongside the application of such powerful multi-factor, multi-layered invisible technologies is the emergence of innovative low friction “visible” technologies such as Voice Biometrics, with Equal Error Rates low enough to ensure widespread mainstream adoption in both online and mobile banking. Speaking is intuitive and when speaking can be combined with voice recognition and voice biometrics, but in a totally intuitive and “command driven” perspective, in high-fidelity, over the data channel (no call placement required), and where no PINs or passwords or any form of pre-determined security information is necessary, then a paradigm shift has been achieved and mass adoption is inevitable.

Such fiction is in fact reality today, and the technologies are already available, and in the process of being deployed by the most advanced technology adopters on the planet. No bank wants to be on the “bleeding edge” of any technology, but in the race for competitive advantage, and the absolute need to counter the fraudsters, no bank can afford to not be on the “leading edge”.

TagsMobile & onlinePayments

Comments: (0)

Comment on this story (membership required)

Latest posts from Pat

Security by Obscurity is the key!

27 January 2015  |  4210 views  |  0 comments | recomends Recommends 0 TagsSecurityTransaction bankingGroupInformation Security

Chip and Signature, a Paradise Lost

28 October 2014  |  5488 views  |  2 comments | recomends Recommends 1 TagsCardsPaymentsGroupDisruption in Retail Banking

Payment Card Data Theft At The POS - Time To Knuckle Down

13 October 2014  |  5275 views  |  1 comments | recomends Recommends 0 TagsSecurityPaymentsGroupInnovation in Financial Services

More Channels, More Payment Options, More Fraud

23 September 2014  |  2560 views  |  0 comments | recomends Recommends 0 TagsMobile & onlinePaymentsGroupInnovation in Financial Services

iHack Hastens Call for Multi-factor Authentication

05 September 2014  |  3950 views  |  1 comments | recomends Recommends 0 TagsSecurityPaymentsGroupInformation Security

Pat's profile

job title Founder/Executive Chairman
location London
member since 2011
Summary profile See full profile »
Throughout his career, Pat has been at the forefront of industry thinking, representing organisations on industry bodies and leading participation in industry initiatives. At ValidSoft, he leads the R...

Pat's expertise

Member since 2011
79 posts40 comments
What Pat reads

Who's commenting on Pat's posts