20 August 2017
visit www.avoka.com

Lloyds experiments with 'tap to bank' card tech for mobile authentication

06 July 2015  |  10871 views  |  6 Lloyds tap to bank

Lloyds Bank customers may soon be able to use their contactless debit card as a way of securely authenticating their identity when setting up the mobile banking app on an NFC-enabled device.

The ‘tap to bank’ technology has so far been tested on over 125 people, replacing the standard call-to-mobile procedure with a simple tap of the debit card. The bank says that in the future, the application could be extended to other tasks, such as authenticating new payments.

Director of innovation and digital development, Marc Lien says: “With the widespread take up of contactless cards and most new smartphones now having NFC technology, this tap to bank trial is developing enhancements to banking processes that many people could benefit from."

In a similar vein, the bank is replacing automated phone calls to authorise certain desktop banking transactions by a log into the mobile banking app to verify their requests.

This process is available for customers setting up new beneficiaries, setting up standing orders, making international payments and resetting passwords via their Internet Banking on desktop.

Lloyds says customer authentication on these transactions are a lot quicker than the current automated phone call, now taking less than 20 seconds to complete.

Lloyds Bank currently has around 2.5m active mobile banking customers - with over 1.5 million customers downloading the app - and over 10 million active online banking users. The bank recorded over one billion log ins to its online banking site in the past 12 months.

Comments: (6)

A Finextra member
A Finextra member | 06 July, 2015, 12:18

Interesting approach. Can anyone explain what sort of security this brings to the table?

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Seeva Selliah
Seeva Selliah - Leading European Bank - chennai | 07 July, 2015, 06:15

Not sure how it brings in robust security features? And isn't one of the main purposes of digital / mobile transactions to get away from physical cards?

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Dave Sanderson
Dave Sanderson - YBS Group - Bradford/Leeds - UK | 07 July, 2015, 08:23

My assumption is that the card acts in the way an RCA token would within two factor authentication. The first is the various passwords used to log in to the mobile app and the second is the card itself. There are a number of scenarios where a fraudster/criminal would have access to one of those things but rare that they would have both.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
A Finextra member
A Finextra member | 07 July, 2015, 09:14

@Dave. A payment card releases static card data when challenged from the NFC reader. Once the card has been used the first time, malicious software can capture and reuse the card data, any time. Hopefully they are able to block malware from modifiying the app.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Dave Sanderson
Dave Sanderson - YBS Group - Bradford/Leeds - UK | 07 July, 2015, 09:23

@Bjorn -  of course, I hadn't even thought of that aspect of it. Probably a good thing I don't work in Financial Crime!

1 thumb up! 1 thumb up! (Log in to thumb up)
Thomas B. Normann
Thomas B. Normann - MeaWallet - Sandvika | 08 July, 2015, 12:14

This sounds like a solution that's easy to hack. Are they using static or dynamic data from the card to authenticate? I really hope they're not using the static data - then your card data (easy to steal) gives full access to your account.

If they are using dynamic data it would be interesting to learn more about how they do this. Are they using session/transaction keys? Or are the cards running an additional applet for authentication purposes? 

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

European contactless adoption explodes

European contactless adoption explodes

06 July 2015  |  13955 views  |  1 comments | 32 tweets | 26 linkedin
Lloyds challenges student coders to develop gamified banking apps

Lloyds challenges student coders to develop gamified banking apps

20 April 2015  |  8028 views  |  0 comments | 15 tweets | 9 linkedin
Lloyds gives T&Cs a digital makeover

Lloyds gives T&Cs a digital makeover

08 April 2015  |  11144 views  |  0 comments | 17 tweets | 11 linkedin
Lloyds to accept electronic photo ID docs for online account opening

Lloyds to accept electronic photo ID docs for online account opening

11 February 2015  |  14911 views  |  7 comments | 28 tweets | 17 linkedin
Lloyds to push rewards to customer mobile phones and smartwatches

Lloyds to push rewards to customer mobile phones and smartwatches

09 February 2015  |  10071 views  |  0 comments | 20 tweets | 10 linkedin
Lloyds to pilot mobile cheque deposits with business customers

Lloyds to pilot mobile cheque deposits with business customers

12 December 2014  |  16078 views  |  2 comments | 15 tweets | 14 linkedin
Lloyds commits £1 billion to digital amid massive job cuts and branch closures

Lloyds commits £1 billion to digital amid massive job cuts and branch closures

28 October 2014  |  16736 views  |  0 comments | 20 tweets | 19 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
download the paper nowvisit www.dorsum.euvisit www.niceactimize.com

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
9945 views comments | 23 tweets | 23 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
8381 views comments | 19 tweets | 23 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
7975 views comments | 10 tweets | 7 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
7869 views 0 | 3 tweets | 1 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
7244 views comments | 15 tweets | 13 linkedin

Featured job

Find your next job