Online Banking thoughts on future trends

I was going through some notes and found a brain dump of ideas about online banking, security and customer behaviour. I though that is would be worthwhile posting it here for safe keeping:

Nicks thoughts on future trends.

• Customers will want to do more for themselves and from more locations at any time of the day or night.
• As a mass market group customers will continue to very slow to learn about security risks and even slower to change their behaviour.
• The protection of customer data will become as important as the protection of customer funds, since in the virtual (Internet and phone based) channels access to funds is controlled by the data that you have.
• The information that is used for identification will need to change to banking specific, non public information. Ie No more birth dates and originating branch questions.
• It will become harder to reset Phone banking and Internet banking passwords with out Physical ID. (eg second factor authentication or visit to a branch with proof of Identity)
• Regular changes to passwords will become enforced and additional rules will need to be applied to prevent the same password used for physical and virtual access.
• Second factor authentication will need to be used by customers to view or modify data that might be able to be used for authentication.
• Second factor authentication on ALL virtual channels may be offered as a premium opt-in service initially, before full deployment to all customers.
• Attacks from criminals will become more targeted as the volume of stolen customer data accumulates.
• Identities successfully stolen once will be re-used and resold to others again and again, since once stolen it is much harder to change than a username and password to change.
• The bank will adopt multiple methods of communicating security-related issues to customers, eg message minder and/or SMS to alert customer that they should have received a mailed credit card.
• There will be a tipping point event (or series of events) that will cause customers to expect and demand better security from the banks. “Why have we been lied to? They knew that this was happening all along…”