Moving transactions and business processes online increases bank profits, but require higher levels of trust.
Most eBankers agree that moving transactions and business processes online helps improve the bottom line. Going beyond checking balances, transferring funds and making payments, however, will require a significantly higher level of trust. All parties would need high confidence in each other’s identity. Digital signatures that ensure non-repudiation would be needed for documents like mortgages or large overseas purchases.
By adding a digital security device into the transaction (something you have) a higher level of trust and non-repudiation can be added to the online channel. This better protects basic online banking and sets the stage for more complicated and high-value transactions that can help increase bank profits and operating margins. This is something that Barclays has done successfully in the UK with the launch of its Pinsentry device, massively reducing fraud and gaining market and customer recognition in the process.