Document Management News

Over 20m banking customers will be using a mobile phone to authenticate and complete electronic transactions by 2014, says analyst Goode Intelligence.

Goode Intelligence has published a report which forecasts that in the financial services sector, mobile phone-based authentication products and services will be used by just under 3m users in 2010. But this figure will grow to a little over 20m by 2014.

The report, "The Mobile Phone As An Authentication Device – Analysis and Forecasts 2010 – 2014", shows the key drivers behind this market growth are:

• The requirement to reduce fraud from identity theft and unauthorised access for both internet and mobile financial services
• Industry and government regulation, including PCI DSS for credit card processing and FFIEC for US financial services, mandating the need for strong two-factor authentication
• The growing requirement to verify payment transactions for both internet and mobile banking services
• An ongoing need to reduce operational costs and improve efficiencies for financial services companies

Alan Goode, founder of Goode Intelligence, said, “The mobile phone gives financial services companies incredible flexibility. The mobile phone can be used to provide strong two-factor authentication into all financial channels, including physical and virtual, and also provides an excellent method to verify financial transactions including payments.”

The report also says the growing adoption of smartphones, the iPhone and Google Android-driven devices by corporate and personal users will drive the market for "soft-token" one time password (OTP) deployments.