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Online Banking Authentication: A Survey of Banks

Online Banking Authentication: A Survey of Banks

An Aite Group’s survey of 21 of the top 50 U.S. retail banks indicates that 57% of U.S. major banks are planning to roll out online multifactor authentication by the end of 2006, with 34% expecting to complete the roll out in 2007.

Boston, MA, April 17, 2006 – In a new report, Online Banking Authentication: A Survey of Banks, Aite Group unveils and assesses how 21 of the top 50 U.S. retail banks (ranked by number of checking accounts) approach multifactor online banking authentication. The survey examines financial institutions’ plans, including their vendor selection criteria and the security features they are considering implementing.

Although the deadline for complying with the FFIEC guidelines for multifactor online authentication is approaching fast (December 31, 2006), a number of institutions have not started to deploy a solution yet. Only one of the survey participants had rolled out a solution at the time of the survey (March 2006).

Among its key findings, the report reveals some significant divergences among retail banks on the types of solutions they expect to implement. For instance, 21% of the banks in the survey view the visibility of the solution as critical, 47% say it’s only somewhat relevant, and 32% argue that the solution needs to be invisible. Also, while 37% of respondents state that the solution needs to work across channels, 32% dismiss that capability by referring to a strict interpretation of the FFIEC guidelines.

"Because a large number of banks have not made up their minds as to which vendor and solution they will pick, many institutions will be hard pressed to be in production before the end of the year," comments Gwenn Bézard, a research director with Aite Group and the author of the report.

The report discusses financial institutions’ dealings with the following twelve vendors: Actimize, Business Signatures, Corillian, Cyota/RSA, Digital Envoy, Fair Isaac, 41st Parameter, Passmark, Strikeforce, Tricipher, Vasco, and Verisign.

This is a 31-page Impact Report. Clients of Aite Group's Retail Banking service can download the report.