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Banks risk brand with technology gamble

Wednesday 13 June 2001 02:49
Banks and financial organisations have been quick to launch e-business initiatives but they have gambled with technology and have often been dismayed by the results.

This approach risks damaging brand names, industry experts said at a round table discussion at the Planet Tivoli user conference in Vienna this week.

The market may not support Internet-only banks, such as Egg and Cahoot, they added.

"I don't believe in such a thing as the e-commerce-only bank," said Marc Vanmaele, managing director of IT consulting firm SecurIT. "People have to be able to interact."

Customers may wish to conduct simple banking processes, such as checking their balance, over the Internet or on mobile devices, said Vanmaele. However, they want human contact if they are carrying out more complex procedures, such as negotiating the terms of a loan, he added.

The Planet Tivoli audience was told that banks and financial institutions need to offer a multi-channel delivery, which means getting their mobile and Internet offerings right, or they risk damaging their traditional business.

"People are getting more concerned with e-business and the impact on their brand. It has to be consistent with their brand. It is crucial that, as a business, they look at the security of their business and the channels they deliver on," warned Andy Astbury, European sales manager for global financial services at Tivoli.

The financial services sector should check the technology they plan to use thoroughly before rolling out mobile and Internet-based services.

"Usually banks and insurance companies take risks and implement new technology," said Jose Lopez, lead research analyst for European network security services at Frost & Sullivan. "However, sometimes they're disappointed with the results. This happened with PKI (public key infrastructure)."

Emma Nash