Slovenia’s bank, Banka Koper, has chosen XIRING to supply it with more than 10,0000 smart card readers as part of the bank’s roll out of its authentication solution based on the MasterCard Chip Authentication Program (CAP).
Xiring supplies more than 10,000 pocket smart card readers, which allow on-line authentication of an account holder using a standard EMV smart card
Suresnes – XIRING has been selected by Slovenia’s bank, Banka Koper, to support the country’s first e-banking and e-commerce program, which will begin roll-out in May 2005, with a smart card based authentication solution based on the MasterCard Chip Authentication Program (CAP). This roll-out comes at a time when most European banks are working on projects to improve the security of their on-line services.
XIRING will supply Banka Koper with more than ten thousand Xi-Sign 4000 smart card readers, branded Banka Koper. These will be issued to the bank’s retail customers for use in conjunction with their EMV bank cards, to offer the highest levels of user authentication for accessing banking services online.
Before customers can log onto the internet and conduct banking or payment transactions, they will have to insert their EMV smart card into their individual reader and enter their PIN. The reader will then display a one time password, generated solely for that particular transaction. The user authenticates him/herself by relaying that one time password (8 digits) back to the bank, via their computer keyboard.
“This form of authentication in a remote transaction is known as `two factor’ authentication, as it can validate that the card is present and that the cardholder has given permission for the transaction to go ahead by communicating their PIN,” comments Nigel Reavley, Director of XIRING’s Banking Business Unit. “Entering your PIN into an offline dedicated device, such as the Xi-Sign reader, means it is not vulnerable to fraudsters. The one time password which is entered into the PC has no value beyond the immediate transaction. This means that the users’ identity is more protected than it has ever been before in the world of online banking.”
As internet banking becomes more popular, banks across the world are considering ways in which to make their online services more secure for consumers. A real benefit of implementing an EMV based smart card authentication program is that it can leverage the investment that many banks are currently making in EMV card schemes. This makes it extremely cost-effective, and guarantees the highest levels of security in user authentication.
Gojmir Nabergoj, Smart Card Migration Manager, Banka Koper, comments: “By working with XIRING on our Slovenian e-banking program, we will benefit from the real business advantages that can be enjoyed through the implementation of smart card based authentication programs. We are looking forward to continuing to build a long term partnership with XIRING to create a very successful e-banking and e-commerce program for Banka Koper and the seven other banks in the Activa Card System Group.”
Nigel adds: “By increasing consumer confidence in internet banking and encouraging more transactions to take place on line, banks can significantly reduce operational costs at individual branches. Additionally, by deploying a program which uses independent, mobile readers, such as the Xi-Sign, banks can easily use the same strong authentication solution for other channels, such as telephone banking, making their whole offering more secure and competitive.”
Research from Forrester estimates that the total number of Europeans who use internet banking will rise from 75 million in 2005 to 130 million in 2007.