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IT Trends – New Keywords

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1 IT Trends – New Keywords
May 2009

2 What’s Hot in IT?

3 What’s Hot in IT? Web Services SOA Memory DB Web 2.0 Cloud Computing
Open Source Green IT SEAP, XTP Utility Computing SaaS

4 What’s Hot in IT? Point of view Just Personal interesting?
Technological advancement? Industrial aspect? From the $$ point of view? – Business, Personal

5 Researcher/Professor Law Maker/Politician/Regulator
Who are you? Researcher/Professor CEO/CSO/CTO/CIO/COO Engineer Law Maker/Politician/Regulator

6 Industry Domain (1/2) Government Banking & Finance
Professional Services Insurance Manufacturing Information Technology Health Care Education Utilities Transportation Telecommunications Retail Energy Consumer Products Pharmaceuticals Media F&B Electronics Constructions & Engineering Metals & Natural Resources Hospitality & Travel Chemicals

7 Industry Domain (2/2)

8 You are the CIO of commercial bank.
Let’s assume that You are the CIO of commercial bank.

9 Overview Of Banking Industry And Technology Trends

10 Customer centricity is the dominant theme
Industry consolidation – emergence of pan-European and pan-Atlantic institutions Commoditization – little scope for game-changing innovation and low barrier to entry Relentless focus on customers – service seen as point of differentiation focus on analytical techniques to drive advocacy Channel integration to allow ‘one view’ for customers and banks preference for best of breed self-evaluation, customer service, product customization etc. Competition from non-traditional sources – especially in payments as well as retailers SME integration – bundled products, pricing, dedicated platforms, non-traditional offerings, supply chain and payment integration

11 Innovation is at the detail level and importance is on execution
There are no break through technologies that will change the landscape – it is not a game of big-strokes Developments at three levels Customer interface. Biometrics, convergence and divergence of channels and integration Products. Bundling, customization, pricing, etc Operations. Six sigma, shared services, offshore, etc Technology. Focus on managing “change versus run” the bank investments Exception is cards and payments ‘War on cash’ Nearly 40% of revenue and moving from engine room into profit center Innovation on multiple fronts: contact-less, pre-paid, mobile payments, etc Alternatives such as PayPal, ‘DebitMan’ etc

12 Ease of implementation
There are too many new technologies – where and when to invest is the complexity IT Value Matrix Strategic Value CRM high Online Payment Technology experience branches Contact less payment RFID Multi Channel BPM Personalized, location based offerings Corporate Performance Management Straight Through Processes Electronic invoicing medium Consolidated statements SOA Contact less payment Biometrics Real-time balances Mobile Payments e-Form Security tokens, mobile TAN Check image exchange Handwriting identification low Ease of implementation low medium high Note: Selected emerging technologies

13 What are your top 3 IT projects (in terms of investment) for 2007?
Global investment trends are more towards back office process management and intelligence North America IT Investment Trends What are your top 3 IT projects (in terms of investment) for 2007? 70% 2007 2006 2005 60% 50% 40% Percentage Respondents 30% 20% 10% 0% Fraud/ security Back office Compliance/ risk Online channels Multi-channel platform/ Product origination/ initiatives consolidation (e.g. management refresh/ upgrade integration servicing automation general ledger/ HR) BPM/ process Core product systems Branch systems Electronic payments Enterprise intelligence re-engineering/ refresh/ infrastructure replacement transformation consolidation/enhance 13 (e.g. BPM) Note: Data Monitor

14 Deep Dive In Banking Trends And IT Innovation

15 Customer Service & Distribution
Future Of Services And Distribution Future banks will need to prepare to be the financial aggregators providing anytime anywhere access Financial Services Value Chain – Elements Of The Future Vision Customer Customer Service & Distribution Product Development/ Packaging Processing and Administration Fraud Protection Elements of Vision New Service Propositions Trusted advisor (‘Brand protection’ – to provide quality assurance, reduce risk related to dealing with third parties) Extensive self-service and anticipated service Customised research, updates filtered by client portfolio Real time net worth Portfolio alerts e.g. 5% change in your stock price “Organic” (heuristic) customer modeling - Customer behavior/predictive modeling to better understand their needs (Profile of one) New Distribution Approaches Coordinated use of all channels, including 3rd parties (aligned to customer profitability/preferences; holistic view of customer in each channel; … Accessible via any device- always on, always there Many points of presence leveraging own and third party infrastructure for low cost improved experience

16 Future Of Services And Distribution
Customer relationship management is essential to meet increasingly complex needs Need for effective CRM high Direct Marketing Customer Relationship Management The informed customer has increasingly complex needs Effective leveraging of customer information has become essential to retain customers through offering a highly personalised service Good understanding of customer needs Solutions tailored not only for segment but for individual Leveraged customer information Individualized mass communication One-way and action-oriented No real customer relationship Solution Focus on customer groups Solution Mass Marketing Traditional Customer Service No segmentation with regard to requirements and service levels low low high Interaction at contact point

17 Future Of Services And Distribution
Proliferation of channels and devices is enabling greater accessibility and customer self service Bricks and Mortar Access Channels Remote Channel Access Devices ATMs PCs Call Centre Mobile Phones Increased accessibility and customer self service opportunity Third Party Channels (e.g. Ezybank) PDAs eBranches Games Consoles Kiosks iTV New Branch Types Numerous emerging technology are being considered to increase customer accessibility

18 Future Of Services And Distribution
Self service automation has continuously been innovated - GE in Japan has automated credit approval with Automated Credit Machines GE Japan - Automated Credit Machines Example Product Concept Automated Credit Machines allow instant consumer loan application Network of 934 unmanned branches with 1,284 units of ACM (Unmanned Contract Machines) Machine allows submission of documents Credit approval given within 15 minutes Withdrawal of cash at own and other ATMs across Japan (>40,000 buildings) Source: A.T. Kearney analysis; Company websites

19 Future Of Services And Distribution
While on the traditional branch channel, modern technologies will be integrated to improve customer experience and enhance sales Deutsche Bank Branch Technology Document Digitising Video Conferencing Integration of Self Service & Service Area POS Marketing Card based customer identification Advisor notification when customer in self service area Digital Order Authorisation CRM in Service Area Service Front-End RFID recognition – pre-empts service / product requirements STP & Order Tracking Branch Architecture Service Desk Design Mobile PC tablets for customer assistance Source: Deutsche Bank

20 Future Of Services And Distribution
Alternative channels have gained more recognition - Banks are offering customers individual, attractive and demand-oriented solutions via mobile Alternative Channels – Mobile Solutions Quite a few retail banks are entering the mobile services market again with demand-oriented offers Prepaid loading: customers can load their prepaid mobile cards directly via the transactions portal. The amount is booked directly from the account. Push services: The customer can select individual criteria on the transactions portal according to which he receives result-based news via SMS. Example: M-TAN of the Postbank, result-based trigger, e.g. for receipt of cash or order execution, news services, SMS marketing Benefits for customer: Value-added services Easy-to-use functions Flexibility Benefits for bank: Differentiation in the market Purely electronic processing Proceeds for prepaid loading Effective advertising of re-entry into mobile services

21 Future Of Services And Distribution
ABN AMRO deploys instant messaging to promote external collaboration with customers and partners Alternative Channels - Instant Messaging ABN AMRO deployed MindAlign IM to allow bank staff to collaborate externally with clients and partners, as well as internally within the organization IM to help the company to trade and sell more effectively, and to reduce its reliance on , which is more expensive, slower and less secure MindAlign rolled out to 2,500 staff in over 45 countries. The solution allows staff to disseminate information gleaned from in-person and telephone conversations in real-time to business clients, partners and colleagues ABN AMRO also uses IM to deliver research reports at regular times during the day. The solution allows groups of staff to communicate and collaborate on projects in realtime, and employees to create user communities pertaining to their own responsibilities. In addition, MindAlign preserves unstructured information through archiving and metadata access. Bank executives expect the solution to provide instant benefits to the company, increasing revenues by allowing staff to share information, news and documents in real time, and reducing costs by decreasing volume.

22 Future Of Services And Distribution
Contact less payments by using RFID becomes popular and is offered by several devices and vendors Contact Less Payments RFID (Remote Frequency Identification) chips are getting integrated in various devices They allow identification fast and contact less The three major credit card vendors are offering smart cards and key toddles American Express: Express Pay Mastercard: PayPass Visa: Contactless Special applications are toll and parking payment or gas station payment beside shopping To avoid carriage of several cards and devices RFID chips are getting embedded in mobile phones and provides payment functionality Next step will be biometric identification making devices redundant

23 Future Of Services And Distribution
For business customers, Schwab has successfully automated trading and routine enquiries, and is adding further value through client advice and technological innovation Pursuing a “clicks and mortar” touch point strategy: Utilises physical branch, phone and web based distribution channels to maximise customer channel choice And integrate “high tech” with “high touch” Using branches for customer acquisition, customer advice and facilitating transactions: Offering segmented branch services Standard branches offer "Portfolio Consultation" which provides a service where investors can walk off the street into branches and get their existing portfolio analysed The invitation-only "Signature Service" branch offices provide services for high-end accounts beginning at $1 million Branches remain an important customer acquisition point with 70% customers acquired through branches Continuing to leverage technology to automate services: Very successfully automated trading and routine inquiries to the internet with immediate confirmation of trades Automating advice guidance to free up advisers to focus on providing higher value consultation: “Portfolio Checkup” is an on-line asset-allocation planner based on an investors tolerance for risk; “Sell Analyser” is an online tool that evaluates the cost basis of the portfolio and recommend which to sell for tax losses; “Portfolio Tracker” allows investors to benchmark portfolios against standards/ indexes and identify under performing segments Introduced “Schwab Learning Center” – an interactive web based application to educate clients on investment Introducing trading services via mobile phones using WAP technologies: Transmitting content (real time information) to hand held devices via “Pocketbroker” Launching an account aggregation service powered by Yodlee: Allowing investors to aggregate their on-line financial information from a variety of sources such as brokerages, banks and credit card companies at no extra cost Source: Schwab Website; Schwab Press Releases; A.T. Kearney Research Website:

24 Product Development/ Packaging
Future Of Product Development Mass-customization concepts will reshape the product development and asset management functions Vision For A Future Financial Services Value Chain —Summary Customer Customer Service & Distribution Product Development/ Packaging Processing and Administration Fraud Protection Elements of Vision Cost effective mass-customisation From simple pre-packaged offerings to integrated solutions comprising information, education and product, made up of the same building blocks Least-cost wholesale components Wholesale components made up of tradeable risks and pre-defined processing activities (borne by players with appropriate capital structure and risk management processes) form the basis from which products are configured Contracts for comprehensive range of financial facilities Multi-purpose cash-management offer for full product flexibility Holistic optimisation of credits and investments (integrated cross-sectoral products) Family asset management offerings - “ Aggregation of family portfolio to deliver benefits - IR, offset savings etc” - tie into kids Lifecycle financial assets management offerings - “Product changes to meet your lifecycle requirements”

25 Future Of Product Development
Conceptually, banks will mass-customise their offers by flexibly combining least-cost components supplied by large-scale wholesale manufacturers Overview Of Concept Retail Capabilities to be Developed Unbundle products into components Price and service each component Integrate components and develop modular products meeting specific needs in a timely manner Interface with third party/private label product providers Manage permissions to enable cross-product collaboration Customer A Customer B Mass-Customisable Bundled Products Wholesale Capabilities to be Developed Determine standard components and minimise cost, sourcing as necessary from regional/global scale based players Continuously refine funding need by converting capital held in the Asset/Liability Management function into “Tradable Risks”, sourced externally in accordance with Basel II principles Unbundled Product Component End State Flexible solutions builder able to adapt to changing rules, product needs and system growth Customisable products that can be built to suit individual customer needs

26 Automated Sweep Functionality(1)
Future Of Product Development An early version of a ”mass-customised product offer” has been successfully implemented by Woolwich in the U.K. The Woolwich Open Plan Product Homeowners Insurance Chequing Account Home-Equity Secured Credit Facility Automated Sweep Functionality(1) Mutual Funds Overdraft Protection Visa Card 12 Different Savings Accounts Channel Integration Layer Delivery Channels Wireless - WAP Web TV Internet Banking ABM IVR Branch Product launched in 1999 — by end of 2000, 500,000 customers had applied Reduced costs and increased customer service as multiple products consolidated in one monthly statement Has assisted in migrating customers to electronic delivery channels by enabling WAP and Web TV access Provided customers with access to certain products (e.g., home owner insurance) from online channel that was not previously available Note: (1) Funds are automatically taken from chequing account each evening and deposited into chosen savings account to maximise interest earned Sources: Tower Group, A.T. Kearney analysis

27 Future Of Product Development
A look at citiBank's customer life-cycle management tools in Germany and the US reveals leading approaches Citibank: Customer Life-Cycle Management in Germany: Financial Needs Analysis in the US: Database recommender systems Since early 2002, the core banking product business has been led by the Financial Needs Analysis (FNA) citiBank has developed the FNA to leverage the customer's financial background to tailor individual offers citiBank uses advanced scoring techniques to use that data to help citiBank identify appropriate customers and to align them with the proper product and delivery channel In early 2003, approximately 60-70% of citiBank's customers had completed an FNA with positive early feedback All new incoming customers are required to complete an FNA Repetition of financial needs analysis planned at regular intervals Credit card holders information is stored in data warehouses and used to create individual recommendations at inbound (and out-bound) calls, e.g. a customer who has been flying lately may be offered extra baggage insurance Detailed personal data such as usage patterns of credit cards, demographics and recent offers by Citigroup are used to make individual offers Only customers who fit certain profiles calculated by massive data systems are given a sales pitch A sales pitch increases time of inbound call (three minutes) by seconds About 20% of the goods and services offered are purchased by the customers As a result, Citigroup estimates that its credit card service centers are bringing in % of their expenses through transforming account maintenance calls into up- and cross-sales Source: A.T. Kearney analysis

28 Future Of Product Development
For business banking customers, the ability to provide value added consultative advice to optimize customer financing needs is a winning strategy Technology Requirements SME needs Balance Sheet of all my holdings Supply chain integration with customers, providing insourcing working capital management with following: Transactional functionalities - currency reorder, report distribution, account aggregation over and above the standard functionalities Payment functionalities - check imaging, electronic bill presentment, wire transfers, etc. Integrated online representing whole of customer position and transaction history (across geographies, products, etc.) including consolidated limit management Solid foundation for STP and end-to-end process efficiencies with next generation of information services and intelligences Hosting options as many mid-tier customers do not have the in-house IT presence to manage and maintain packaged solutions Open-source architecture that enables the bank to customize the solution and integrate it with other customer-facing products so that customer information flows seamlessly from one solution to another Predictive modeling of impending cashflow / limit issues Consolidated transactional data by expense type (not account number) Information on how to optimise my financial holdings Single direct feed of all financial data into quicken Data on how my organisation is performing v. competitors and how I can bridge the gap Summary of all account level data Alignment of my financial reporting with the taxation / regulatory reporting I must provide Cashflow statements that identify my rolling position over the month Wealth Creation - 50,000 100,000 150,000 200,000 250,000 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Net Changes Mortgage pay down Property appreciation Investment Growth Savings Growth Repayment Status Movement of your personal loan balance onto your credit card will save you ~$3000 Making your redraw facility your primary transactions account has the potential to yield and incremental $2000 Scenario A Scenario B - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Original Schedule Current Trajectory Cash Flow - 1,000 2,000 3,000 4,000 5,000 6,000 Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Redraw utilised for short term need Use of Credit Card for longer term debt meant excessive interest charges Suggest paying down debt during forecast low expenses period Forecast

29 Future Of Product Development
Various international banks have already offered integrated supply chain solutions to customers Supply Chain Solution Examples Standard Chartered worked with Tata Motors in supply chain services whereby the bank are able to access data all along the supply chain (e.g. movement of the vehicles) and able to have direct monitoring of the dealers' retail sales and their cashflow position JP Morgan has taken a toolbox approach making possible several combinations of products to create the right individual client solution Products range from purchase order management to supply chain finance Using the Bank’s modular technology platform allows trading partners to mix and match services to unique customer needs. Citigroup provides a single point of contact and streamlined access to cash management and trade services and a common web-banking platform With CitiDirect® Online Banking, Exporters can track and transfer LC and amendments online; create export LC presentation letters; monitor transactions – or outsource these processes to Citigroup Both importers and exporters can customize authorization, integrate systems to upload data to their treasury applications or Enterprise Resource Planning (ERP) system ABN Amro’s MaxTrad PO Manager automates the administrative tasks on both the buyer and seller It covers the entire process from electronic delivery of a purchase order for online supplier review and approval, submission of supplier documents, invoice comparison, electronic discrepancy reports, and images of documents related to the transaction to reconciliation and payment By connecting to corporates’ back offices and downloading PO data, the bank is then able to distribute that information to corporates’ suppliers through a common message platform

30 Processing and Administration
Future Of Processing Future processors will drive the development of industry solutions and greatly increase automation and Straight-Through-Processing Vision For A Future Financial Services Value Chain —Summary Customer Customer Service & Distribution Product Development/ Packaging Processing and Administration Fraud Protection Elements of Vision Full integration of value chain Maximised use of STP, electronic interfaces, and expert mgt of 3rd parties involved in the end-to-end process (titles offices, settlement process, valuations, verifications, registrations, etc) Full acceptance of e-forms/signatures/external party interactions Real time decisions with business rules Least cost, maximum flexibility Full access to product engines and enhanced rules User configurable enablement (Business Process Management) Utilization of VoIP as integrated communication infrastructure to manage increased voice and data traffic economically and with scalability as well as increase users’ convenience High performance processing system infrastructure with low costs, flexibility and stability (e.g. emerging utility computing)

31 Sales and Marketing and Distribution Product Development and Packaging
Future Of Processing Disaggregation will allow competition and collaboration Financial Services Value Chain Sales and Marketing and Distribution Product Development and Packaging Asset and Capital Management Administration and Service Retailers Utilities Check Processing Mortgage Processing Card Processing Regional/Global Wholesalers Wholesale Funds Re-insurance Providers Niche Sales Organisations Mortgage Brokers Stock Brokers Insurance Brokers Specialist Manufacturers Mutual Funds Debt Aggregator Insurance Co Payment Providers Niche Sales Organisations IFA Accountants Tax advisors Utilities Financial Institutions as financial aggregator will need to develop capabilities to interface with these emerging ‘specialists’

32 Future Of Processing Integration of an extended value chain will lead to substantial improvement in throughput Example: Security Lending (e.g. Home Loans) Review Security Quality Housing/Land Register Titles register exists, value register does not in most cases 30% simple cases 50% some review required (building restrictions, cross ownership,…) 20% complex cases (strata titles, sub-divisions,…) Coding and application of business rules to increases automation Can be extended to any security/any environment Livestock register Financial Instruments Secured Lending System Decision rules Workflow Manage transfer conditions Authentication of involved parties Biometrics, digital certificates Assess transfer conditions (contract terms, single/multi-party ownership,…) Coding and application of business rules, pre-certification Settlement Settlement authority pre-determined (e-signatures) Payment flows in existing transaction systems Stamping Registration and duty payment Automatic

33 Future Of Processing Business Process Management (BPM) allows the business users to manage processes without the IT department Business Process Management products gives the business users the ability to create customized applications and auto- mate processes These tools allow users to design, execute, and monitor processes by themselves without the IT department The BPM cycle of design execution and monitoring provides direct feedback to process modifications They provide a graphical interface similar to Microsoft Visio for easily building processes by linking together different objects. BPM processes can be executed to interact with both employees and systems BPM saves time and money Work items & work list Third party applications & automated activities Security & Directory Services Invokes Generates BPM System Execution engine Process designer Validates Persists Defines Instantiates Updates Opera-tional data Process definition Accesses Activity monitor

34 Future Of Processing Several banks have realized impressive benefits by using Business Process Management DZ BANK Reduction turn around time of personal loans by 70% Allianz Efficiency improvement at accident regulation by 80%, ROI after 6 month Citibank Reduction of failure rate by 80% Barclaycard Origination of credit cards in 18 minutes Volkswagen Bank Reduction of run times of all changed processes by more then 50%

35 Increasing uses of VoIP will enable conveniences and savings
Future Of Processing Increasing uses of VoIP will enable conveniences and savings VoIP Deployment Implementation Examples Lloyd’s of London completed the implementation of a $2 million VoIP system and anticipated $5.7 million in total savings over four years VoIP allows data and voice to be transmitted over a single cable, and enable users to play voic on their PCs. Bank of America decided to migrate from PBX to VoIP, replacing more than 500 legacy PBX systems and deploying 180,000 IP phones on users’ desks Based on the evaluation, the bank segregated VoIP into two categories - VoIP infrastructure services (VIS) and VoIP application services (VAS) The deployment of VoIP was done in phases – first at its branch and corporate offices, and then at its call centers, and commodities and stock trading offices VIS and VAS enable the bank to consolidate its voice and data staff within the IT department Post-deployment, the company reports significant reduction in telephony costs and enhanced employee productivity Source: NetworkWorld Financial Sector Technology

36 Future Of Processing Industry Analysts suggest that the Utility Compute market will be largest offering for ICT suppliers by 2010 Offering Evolution - ICT Innovative Growth / Emerging Declining Optimised Infrastructure Market Penetration Basic Connectivity Optimised Network Messaging Mobility Network Mgt & Professional Services Security Managed Applications Managed Storage Managed Server Managed Hosting IPT Asset Oriented Mobility Managed Apps Performance Utility Compute Time Notes: (1) Diameter and darkness of bubble indicates size of 2010 market Source: IDC

37 Fraud protection and compliance has gained significant attention over the past few years
Financial Services Value Chain – Elements Of The Future Vision Customer Customer Service & Distribution Product Development/ Packaging Processing and Administration Fraud Protection Elements of Vision Stronger, more reliable authentication tools Use of new technologies such as biometrics and smart cards to improve customer authentication – financial institutions worldwide spent US$15 billion in information security projects in 2005 Biometric technologies include finger scanning, iris recognition, retina recognition, facial, signature, voice recognition Smart cards, security tokens, anti-phishing solutions are deployed to enable dual-layer authentication systems IT Solutions to automate compliance processes and mitigate compliance related risks Basel II compliance management systems, internal-rating based credit system for grading loans

38 Future Fraud Protection – Security Tokens
Modern security devices are improving the authentication of customers and the security of remote transactions Security Tokens HSBC Australia is providing all of their retail customers a security device for internet banking The small devices constantly generate one-time numeric codes that are required to authenticate third-party transfers and bill payments online The code allows two-factor authentication – customer identification by a password and something else (a token, or biometric identifier such as a fingerprint) Costs for the tokens are $ 1.5 mil. and customer will not be charged Westpac already provides the devices to some of its business customers for a monthly fee of about $5. Most Bendigo Bank customers can choose whether to purchase a device for $16 An alternative is to send a Transaction Authorization Number (TAN) per SMS on the customers mobile phone National Australia Bank and St George are sending SMS-generated codes to a customer's mobile phone 764534 161616

39 Future Fraud Protection – Biometrics
Banks are experimenting with innovative Biometrics solutions for management of frauds and identity protection Biometrics Solution Map High Iris Face Cost Signature recognition Voice Non Biometric Fingerprint Vein Low Low High Security Source: ATK Research, Fujitsu

40 Future Fraud Protection – Biometrics
Biometrics offer an automated and highly secure solution for customer authentication Leading US Bank – Biometrics Implementation Examples Biometrics are automated methods of recognizing a person based on a physiological or behavioral characteristic. Biometric technologies are becoming the front line defense against fraud and are typically used in conjunction with smartcards to store the users biometric data. Features measured are face, fingerprints, hand geometry, handwriting, iris, retinal, vein, and voice. Citibank rolled it’s biometric payment systems in Singapore (Pay by Touch) in 2006 that allow Citibank Clear Platinum credit card holders to pay using only their fingerprints. Barriers to implementation: consumer reluctance, questionable accuracy, high cost, cultural and religious objections, unsuitable for some customers with injuries or missing fingers etc Source:

41 Future Fraud Protection – Fingerprint Authentication
Fingerprint authentication is relatively cheap and user friendly, but there are barriers to industry wide adoption Fingerprint Authentication Implementation Examples Banco Azteca in Mexico have implemented fingerprint scanners at all branches. Customers are also given a smartcard that stores the users picture and fingerprint data to make purchases at stores affiliated with Banco Azteca Standard Bank in South Africa is using fingerprint verification for it’s ATMs. ING Direct Canada: The system will identify the bank's customers through a high-resolution fingerprint recognition system that fits into a regular-size mouse. The bank will offer the mouse to its banking customers so that they can securely bank over the Internet. Finger printing is a relatively secure, cheap and effective method of identification Security can be improved by combining fingerprint authentication with other measures such as a PIN, signature or voice scan.

42 Future Fraud Protection – Voice Verification
A leading bank’s research found 95% of consumers would accept voice verification, compared with 80% accepting fingerprinting Leading US Bank – Voice Verification Implementation Examples Chase Manhattan Bank recently decided to use voice verification for customer identification following a review of several types of biometrics. However, voice identification has been implemented only for internal security, not customer facing at this stage Charles Schwab and Prudential Securities use voice identification to control access to secure areas and records to prevent internal fraud Voice recognition can be used remotely by customers where as other biometrics require specialized scanning hardware Accuracy declines when the audio quality is poor or background noise is high or the customer has influenza Source:

43 Selected IT trends in banking – Vein Scanning
Japanese banks prefer vein scanning since customers dislike touching fingerprint readers Vein Scanning Implementation Examples Bank of Tokyo-Mitsubishi and Suruga have adopted palm vein scanning systems for ATM authentication Japan Post, Mizuho Bank and Sumitomo Mitsui Banking Corp. have announced their adoption of a biometric system that reads the pattern of veins in the index finger to identify customers Japan's Financial Services Agency has proposed the standardization of biometric identification systems otherwise customers will inconveniently locked into using only their own banks ATMs Vein scanning uses infrared light and is inexpensive, non intrusive and a highly secure authentication method – false rejection: 0.01%

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