Accepting mobile banking and payment solutions from internet service providers and handset vendors may be fun for the bank customer – and the bank may find it hard to resist. Then again, there is not that much fun in handing over the relationship with your bank customer to these new players. So banks, beware - and consider an innovative solution based on Secocard which gives your customers all the flexibility and security they need, while maintaining your strategic position of being the institution which gives out these powerful and helpful tools to your customer base.

Accepting mobile banking and payment solutions from internet service providers and handset vendors may be fun for the bank customer – and the bank may find it hard to resist. Then again, there is not that much fun in handing over the relationship with your bank customer to these new players. So banks, beware - and consider an innovative solution based on Secocard which gives your customers all the flexibility and security they need, while maintaining your strategic position of being the institution which gives out these powerful and helpful tools to your customer base.

The Challenge

Bank customers begin to lose trust in software based online banking procedures such as mTAN – since it has been hacked – and tend to understand the necessity of secure element based online banking and payment systems, even in the increasing presence of “nice and comfortable” software-only payment solutions coming from overseas.

They also wonder to what extent the permanent surveillance of their communication with the bank may affect their financial stability.

Then again bank customers ask themselves why they should carry a piece of hardware for which they need to pay a price, small as it may be, and which has no other function than protecting their e-banking and e-commerce transactions – isn’t this something the banks should take care of using their own tools and means?

The bank in this case can certainly resort to solutions provided by the handset manufacturers or the mobile network operators. These are generally connected to a secure element inside the phone or the SIM card. Unfortunately this is the fastest way to say goodbye to both your bank customer and to transaction processing margins. The applications would then be linked to a specific player other than the bank and the bank no longer has any means of keeping the customers using exactly your services, and at the end of the day the handset manufacturers, in unison with operating system makers, will compete with mobile network operators about who owns the banks’ former clients’ business – and ultimately the banks’ former customers themselves.

The Solution

If every bank and payment service requires different hardware – or goes unprotected or worse, handcuffed by the handset manufacturer or mobile operator because of their software based solutions which are connected to a secure element inside the phone or SIM card – the customer will become reluctant to be using either.

Dear bank: Give your customers something they can value – which dons them the full protection of a dedicated hardware solution. Your customers can exchange their fancy smartphone and tablet practically every day at random – the banking device will remain the same and provide all the security: Not only protect online banking transactions and mobile payment services, but also shield the dialog between bank and customer from eaves-dropping and tapping. No need to exchange the small and lightweight device – not really bigger than a few credit cards stacked on one another – if your customer subscribes to a new bank service or decides to change the way she wants to operate her account from her desk or any other place through remotely using the mobile internet - as long as the service is protected by a protocol and application which has been standardized according to the requirements of e.g. the German credit industry, and as such has been implemented beforehand in the device your customer has begun to love while using. It makes so much more sense to handle a small piece of hardware which is compatible with all the smartphones, tablets and PCs, and your customer will not have to worry whether or not the next service which you, the bank, will promote may be something that could become corrupted within a few months or weeks following its introduction.


Our Security Platform in Pictures