Internet bank.ppt

The views and opinions expressed in this presentation do not necessarily represent the views and directives of the Office of the Comptroller of the Currency or the Office of the Director of the Bank Technology Division. Wireless Banking Motivations Banks and financial service companies are offering wireless account access Extension of internet applications Delivery to highly portable cell phones personal digital assistants More people getting devices Features improving as technologies advance Improve customer retention rates, especially technology oriented customer Retail Delivery PCs relying on non-bank owned wireless LANs or cell phone dial-in to access internet banking products Mobile devices (e.g., cell phones, PDAs) accessing banking products customized to smaller form factors Application support outsourced Services range from full internet banking services to limited balance inquiry, funds transfer, bill pay brokerage Wireless Link Retail Delivery Wireless LANs rely on unlicensed radio frequencies and IEEE 802.11 standards Cell phone delivery rely on licensed radio frequencies and evolving voice to data focused delivery standards Challenges Security Systems Development and Life Cycle Management Performance Return on investment Reported DataSecurity Incidents Identity Theft 86,200 identity theft incidents last year, up from 31,000 the prior year The cost to consumers averaged $1,200 per crime Some incidences required victims to spend up to three years communicating with lenders and credit bureaus to straighten out records. Source - Issue 771, Sept. 2002, of The Nilson Report, p.9 – FTC Data Banking Risks Same inherent risk and issues as Internet Banking, primary risks affected Strategic Transaction Reputation Compliance Strategic Risk Determining wireless banking role in delivering products and services Defining risk versus reward goals and objectives Is the reward added revenue, saving lost revenues, and/or increased efficiency? Are capital e