Jiri’s Notepad

Patrick Bedwell, Arcot Systems, 24th April

A good overview of mobile banking

Evolution of mobile banking
First mobile banking solutions arrived at the end of 80s and technology then evolved in three waves. First was a basic mobile banking providing basic services such as account inquiry, activity alerts, finding a cash machine. Then came a second, mobile payments wave technology allowing initiation of payments at the PoS and in virtual worlds and P2P communication via SMS. We are at the beginning? of a third, mobile marketing, wave enabling two-way, interactive functionality during transactions, alerts, loyalty programmes, location specific offers and electronic coupons.

Current mobile banking technologies
There are broadly three classes of technologies, each with its own benefits and disadvantages:

• SMS – familiar to the target user demographics, low cost of entry, but not guaranteed delivery, no end-to-end encryption, data stored on device. Exposes users to a range of threats including fraudulent SMS messages, spam, spoofing;
• Browser – common. familiar, SSL encryption, low cost requiring only extension of the existing internet banking system. Has problems with upgrade, small screen & keyboards affecting usability; vulnerable to phishing, malware, squatting, man-in the middle, vulnerabilities;
• Thick-client apps – secure, dedicated to single purpose, allow branding, upgrades, resistant to phishing, support multi-factor authentication, lower cost, increased stickiness & better used for marketing; challenging if they need to be installed by customers (uptake & helpdesk impacts); still susecptible to malware and inherent vulnerabilities; hundred phone models to support; some banks to tied to provider / devices

Future
Limited consolidation of technologies. Higher risk transactions will require more secure access. Services and adoption will vary widely across countries and services. Criminals will follow the money. Regulators will follow he criminals. Our handsets will never be the same after the iPhone.

Overall rating: 4/5 (A solid technology session delivered by a vendor which was not just a thinly disguised sales pitch)