CASE STUDY: ELECTRONIC BANKING By: Sarah Baig, Laura Logan, Agyakwa Tenkorang

INTRODUCTION Banking began in 14 th Century, Italy: famers burrowed money to finance crops Bank (Banca): Italian for “bench” Introduction of online banking- physical branch to virtual world Cost efficient and convenient Banking is depending on security and authentication: secure transmission of data Guardian Newspaper September 2013: encryption standard no longer safe as there is a strong movement towards mobile banking Utilize fictitious TransEuropa

TRANSEUROPA TransEuropa is bank that has been well established in a European country for many years Has designated security as a top priority in their banking operations; improved security promotes customer satisfaction and confidence Focus on authentication and secure transmission of data Authentication has been improved by changing login process from username and password to 2-factor authentication (reply to security question and entering of a TAN) Security of transmission is based on SSL protocol (asymmetric and symmetric encryption) and extended validation digital certification Concerns that current encryption key length may be breakable by brute-force decryption or backdoor methods Malware concerns: phishing exploits and man-in-the-browser Trojan

MOBILE BANKING Mobile Tech boom: 590 million phones used globally for banking the year, expected to exceed 1 billion in 2017 Banks, worldwide, spent $118 billion on technology and mobile banking in % of top 100 financial institutions in US offer mobile banking Approach of European Countries: use device detection tech to allow various devices to be compatible with all the features available for the online banking facilities Connection over WiFi controlled by WEP or WPA protocols or an unsecured service. Connection over mobile service will use GSM (Global System for Mobile Communication) protocols

MOBILE BANKING Approach of Developing Countries: Mobile banking only see in cities Not found in rural areas because lack of internet access and bank accounts TransEuropa plans to provide basic financial services to the rural population, basing their model off the Kenyan M-PESA system. Allows mobile owners to pay for services and transfer money with credit stored on phone. Development of STK (SIM Application Toolkit) is essential for TransEuropa plan

NEW DEVELOPMENTS development of Mobile Wallet smartphone app; TransEuropa’s customers can use their phones to pay for goods with either store or credit/debit cards and allow customers to access ATMs without the need for a bank card advantage of app: people always look for quicker and easier ways to make their purchases development investigating the use of biometrics in providing more secure authentication and verification (authentication) main areas that are essential for maintaining and increasing customer base are authentication, data security, and user interface TransEuropa must adapt customers’ desires for services such as internet banking and mobile payments

CHALLENGES to prepare a report on the different encryption protocols currently being used and how they might change in the future to design the user interface that will work with the STK for their developing world mobile project to review the authentication procedures in order to increase the security of banking operations to complete the research necessary for developing the Mobile Wallet project