Post on 03-Jan-2016
Internet BankingInternet BankingKey IssuesKey Issues
Internet Banking Working Group
May 14, 1998
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Presentation plan
Key issues for European banks International co-operation Next steps
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Key issues for European banks From online banking to Internet banking Cyberfinance and eurofinance Standards Infrastructure Smart cards Regulatory environment Competition versus co-operation
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On-line banking and Internet banking
Opportunities and threats Online banking experience
• Limited competitive impact• Distribution channel complementarity
Internet banking anticipation• Major cost reduction• Value chain upheaval
Internet• a channel• ..or a placenta ?
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On-line banking and Internet banking
How reliable are channel transaction costs data ? Hidden Internet costs
Who will benefit from cost reduction ? Existing players Newcomers
Service pricing What coverage? What service offerings? Bundle or unbundle?
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Internet banking Opportunities
New services• Lifecycle asset management• Transaction management• Trust infrastructure management
Threats Lack of competitive differentiation Diminution of customer loyalty Disintermediation
• …or value displacement
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Internet and Euro Coping with a large-scale system overhaul What is the combined impact ?
On technology deployment• New architecture
On marketing approach On the market structure
From national to transborder retail banking
From national to transborder retail banking
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Standards Adopting US standards ?
OFX Integrion SET
Adapting US standards ? How to organise input
The future of national standards HBCI Etebac
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Internet banking standardsEDIFACT,(SWIFT?)
SSL SRT OFX OBISET OTPTransactionStandards
Content
Confidentiality/Integrity
Authentification
FreeChoice
Free Choice
Free Choice:- PIN/TAN- Dig. Certif.- Smartcard
SSL
HBCI
SSL
Integrion
Merged in the future
SSL
Source: Brokat
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Standards Which forum ?
The role of traditional standards bodies• CEN very active in electronic commerce
The role of financial industry bodies• ECBS
Which scope ? Technical Business User interface
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Infrastructure What are the requirements ? Geographical coverage
National or European Basic architecture
Intranets or extranets ? Integration or interconnection ?
Project development and ownership Public, private or cooperative ?
• Who should be responsible for Development? Operations? Conflict resolution ?
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Smart card use
How critical ? Optional Integrated
What services ? SET Enhancement Generic security Stored value
Which standards ? How useful is EMV ?
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Regulatory environment Transborder regulation Trust infrastructure oversight Customer protection Treatment of new players
Virtual banks Technology providers and system integrators
New risks Remote banking System reliability
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Competition and co-operation
New rules of the game• Banks and other financial services suppliers• Banks and technology providers• Banks and their customers
Co-opetition
Competition Co-operation
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International co-operation Banking Information Technology Secretariat (BITS)
Part of The Bankers Roundtable• 125 largest bank holding companies in the United States, represented
by their senior executivesCreated to ensure banking sector input into
• Standard setting• New payment architecture design and implementation• Public policy discussion of remote banking and related issues
Organisation• High-level board• Small secretariat• Working group network
Security & Risk
Assessment Steering
Committee
Security & Risk
Assessment Steering
Committee
Board of DirectorsBoard of Directors
Catherine AllenCEO
Catherine AllenCEO
BITSAdvisory Group
BITSAdvisory GroupBITS StaffBITS Staff
Research & Communic-
ationsSteering
Committee
Research & Communic-
ationsSteering
Committee
de novo Meta-
Architecture Working
Group
de novo Meta-
Architecture Working
Group
Industry Review
Working Group
Industry Review
Working Group
StandardsSteering
Committee
StandardsSteering
Committee
Legal and Public Policy
Working Group
Legal and Public Policy
Working Group
PrivacyWorking
Group
PrivacyWorking
Group
International co-operation BITS Structure
International Co-operation BITS: Selected Initiatives
Privacy Security
• Certificate Authority Business Case Analysis Global Security Architecture White Paper
Meta Architecture Standards
• OFX/Gold Process - Draft II• Smart Card Standards White Paper
Legal and Public Policy• Digital Signature Legislation• White House Electronic Commerce Strategies
International Co-operation BITS and FIWG
Several informal meetings Mutual interest in co-operation Priority areas
• SET Smart card integration Governance
• Trust infrastructure and Security• Standards development
Next step• High-level meeting late June/early July
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Next steps Common projects
Transborder projects Common infrastructure Standards
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Next steps Is there a need for an Internet banking forum ?
Bringing together • Financial institutions and technology providers• Traditional players and newcomers• Public authorities and private sectors
Allowing a sharing of data and experiences Developing consensus on critical issues