The Bankwatch

Tracking the consumer evolution of financial services

Card Technology, The Smart Card News Source

European Banks continue with their “belt and braces” approach to security with smart cards, and software based customer recognition.  This is in contrast with the North American market where the latter is the only security enhancement in place.  Time will tell if Europe is the lead on this, and North America will simply fall in lockstep. 

VDK Spaarbank, a Belgian savings bank, will distribute smart card readers made by Vasco Data Security International, Inc. to all its Internet-banking users. Vasco, which has dual headquarters in Belgium and the U.S., says the bank will use Vasco’s Digipass 810 reader both to allow accountholders to access their accounts online and also to use their debit cards to make purchases over the Internet.

Source: Card Technology, The Smart Card News Source

Relevance to Bankwatch:

At a minimum I believe it is essential to avoid duplicating costs, as some Banks are doing.  Over time, I still see the use of software as the best approach, because it provide a very accurate method of customer recognition.  The downside is that it requires the data retention, and analysis in the background to support.  Contrast that with the European approach that says we will make sure you are in fact you, and once you are in, you can do what you like.

The answer will be something in between so its a question of investment pace and timing.

 

Written by Colin Henderson

November 16, 2006 at 19:10

Posted in Security

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