Alliance & Leicester (A&L) has seen a 22 per cent rise in active online current accounts since launching its two-factor authentication technology in March.
The site-to-user and user-to-site authentication solution from RSA Security allows customers to log in to their online accounts using a previously selected image and phrase.
In the month following deployment, online transactions increased by about 20 per cent, which translates to a cost saving of some £1m a year.
Rival bank Lloyds TSB has seen a 21 per cent increase in activity since it introduced two-factor security in September last year.
Barclays, which will offer all online customers two-factor authentication security next year, says it is an established online bank and does not expect its figures to be as high this year as those seen by Alliance and Leicester and Lloyds TSB.
Andy Muddimer, head of internet banking at A&L, says the bank has been surprised by its customers’ responses.
‘When we launched this two-factor system we built a loss-avoidance business case, but there was a big increase in online transactions,’ he said.
‘Criminals look for easy targets, and attacks have been negligible on our system since we implemented it.’
Banking payment association Apacs is developing a standard two-factor authentication card reader that it hopes all banks will eventually adopt.
There has been industry debate about whether banks should offer their own two-factor authentication systems, ahead of the Apacs standard.
Muddimer says security is becoming a selling point.
‘You could argue being the most secure bank is a competitive arena. I think it is important that banks unite on this issue, but we’ve taken it to the next level while we wait for the industry standard,’ he said.
A spokesman for Apacs said: ‘The technological platform for the system has been agreed, but at this point we are not in a position where everyone in the industry has agreed on what the standard should be.’
What do you think? Email us at feedback@computing.co.uk
Further Reading:
Do you agree?
Have your say on this article