Finance Keynote Margaret Jackson[1]

8/14/2019 Finance Keynote Margaret Jackson[1]

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P rivacy and I dentity in the

Mobile LandscapeProfessor Margaret Jackson

Presentation to the Smart Services ForumSeptember 2006


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Privacy and Identity in the Mobile Landscape Slide 2

Aim

My aim is to bring together findings of tworesearch projects on the theme of privacy,

trust, security and identity.Case studies on the adoption of wireless technologyHow people manage money and how they bank

Then relate these findings to mobile banking.


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Defining Some TermsPrivacy

Focus is on personal information privacy and can mean both non-disclosure of personal information and control over theuse of ones information.

IdentityThe other side of privacy. How do businesses identify to whomthey are providing goods and services? How much informationis enough?

Security

Some customers confuse privacy, identity and security.Security for many is control of access to financial informationand account details.


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W ireless Case Study

14 case studies of wireless technology havebeen completed.

We mapped the wireless landscape not interms of the wireless technology used, asmany studies have, but by focusing on thetype of product or service wireless technology

can deliver.

We chose projects which fell into threecategories of wireless mobility:


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W ireless Case Study cont

1. M-Commerce consumer transactions(including sales of goods and services), usinga mobile phone or the Internet accessed viawireless

2. M-Services services to individuals andorganisations, such as banking and wirelesscommunications in health

3. M-Enterprises - enterprise solutions, such aslogistics applications or supply chain

management solutions.


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W ho W e Talked ToAREA SI ZE ORGANI SATI ON TECHNOLOGY STATUS

mCommerce Small P ublisher of Guides transfer content from hardcopy & I nternet to phones

SMS Shelved

mCommerce Large Telecommunications using a mobile phone to buycans of soft drink

Mobile P hones Shelved

mCommerce Small W ireless Solutions Provider Providing Tickets to MobilePhones

Mobile Phones I mplemented

mEnterprise Large IT Storage Company Storing Data from P DAs

W ireless PDAs I mplemented

mEnterprise Large City Council CCTV W ireless CCTV I mplemented

mEnterprise Large Water Supply Company P roviding OnsiteMaintenance for W ater Pipes

WirelessDispatch

I n Development

mEnterprise Large Gas Supply Company deliveries of gas

WirelessDispatch

Implemented

mServices Small Dentist Reminding Clientsabout Appointments

SMS I mplemented


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W ho W e Talked To contAREA SI ZE ORGANI SATI ON TECHNOLOGY STATUS

mCommerce Large Bank Recharging

Mobile Phone at ATMs

Mobile Phones I mplemented

mServices Small Mortgage BrokerServices OnlineMortgage Applications

W ireless Laptops & SM S

Implemented

mServices Large Tertiary Education /Hospital MedicalRecords

W ireless PDAs I n Development

mServices Large Tertiary Education Course Materials

Wireless PDAs & Mobile Phones

Implemented

mCommerce Large City Council P aying forParking via a M obile

Phone

Wireless PDAs & Mobile phone

Implemented

mServices Small P rivate Taxi Group Bookings and Payments

W ireless Dispatch& Mobile Phones

Implemented


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General FindingsMost of the media articles about wireless projectsare misleadingly positive

The same problems with implementation of projects occur in different industries/sectors but

there is no exchange of information aboutproblems across sectors.

Many are keen to use the technology but arestruggling to find a compelling business case.


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General Findings cont

Implementation of wireless projects has beenharder than expected.

Once started, the major issues are with the

technology and with integration with existingsystems.

In some cases, computer security is not well-handled and is often a late add-on.Projects with mobile phones collect the mostpersonal information.


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Regulatory FindingsNo real understanding about how the PrivacyAct operates and to whom it applies.

Hard to know which act applies to someactivities eg, is a telecommunications

company which supplies credit a creditprovider?

Changes to regulations and policies candisrupt projects eg NSW police and CCTV.


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W hat Else do the Case Studies Show ?Replacing a paper-based process:

Gas deliveriesMaintenance of water pipes

Taxi bookings and paymentsTAFE course notesMedical recordsStorage of data from PDAs

These projects have generally worked welland demonstrated a strong business case.While there are some privacy issues, most

are built into the implementation plan fromthe start.

Using a mobile device to do a sm all transaction:

Parking and infringement warningsRecharging a mobile phone account atATMPurchasing a can of soft drink

There is usually limited take up (if they movepast the trials) and privacy and identityproblems in that a lot of information iscollected about the customer, well in excessof that needed for the service. The projectsare a good idea and we have the technology.

Adding value to existing services to customers:

dentist appointmentsticketsmortgage broker

Seen as a service by the customer and as anextension of other services

New Activity

CCTVContent

Some issues with these


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Banking P rojectInterviewed 79 people from a range of

backgrounds.Asked them:

How they managed their money?How they bank and pay accounts?How they handled the online environment?About their relationships with their bank or buildingsociety.


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Our I nterview ees

31 men and 48 women. This dominance of womenwas partially explained because women manage

money particularly in the lower incomehouseholds;

Participants were aged between 18 to 80 years

We had a range of annual household incomelevels: 15 had an income below $25,000; 18between $25,000-49,999; 12 between $50,000-$74,999, ten between $75,000-$100,000 and 20had over $100,000 a year. Four participants didnot want to disclose their household income;


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Our Interview ees cont

Twenty-three participants had a Certificate orlower educational qualification, 51 had a BA orhigher degree, four had other qualificationsand one did not say;

49 used Internet banking;15 people used the Internet but didnt bankonline; and

At least 50 people had a mobile phone and 3used them for mobile banking


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Our Findings

We found that generally online banking is almost a middle tohigh income activity you need disposable income.

People with disabilities regardless of income will use the internet.

Those who use it do so because it is extremely convenient, somuch so that its convenience overrides any concerns people hold

about privacy, identity or security.Concerns about the privacy of the personal information handed tbanks is not really an issue with most people, but changingpersonal information details can be a source of frustration, all inthe name of privacy.


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Our Findings cont

Concerns had to be probed for and focused on the security of

credit card information and on unauthorised access toaccounts.

Nine people were concerned about identity theft; eight of them used internet banking.

Only three people of the nine were concerned about theft of identity as opposed to theft of money from accounts or cards.

A small number of people will not purchase goods over the

Internet because they have concerns about the security of their credit cards details or because they have no need to doso, but they will still bank online because it is convenient(attitude to eBay, airline tickets).


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Our Findings - Security in the sense of unauthorised access to their accounts

Security was a matter of great concern to 12 of the 49 users.The usefulness and convenience of Internet banking overrodethese concerns. The bank will look after me.

Security was a matter of some concern to 37 of the 49

Internet banking users in our sample. There were twodifferent kinds of people in this group. Some saw themselvesadept at information technology and security and judged thatthe security mechanisms in place were adequate. Otherstrusted the bank would look after them in case of loss.

All of them had different risk minimization strategies. Theseinclude boosting the security of the PC, ensuring that only a

safe computer was used for Internet banking, checking theirbalances regularly, using a credit card with a low limit or

curtailing use.


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I mportant Factors to Note

We found that people still trust their bank to look afterthem if anything goes wrong with their accounts.

Attitudes to some aspects of security are probably notwhat banks would hope for in that our interviewees will

share account passwords and other access procedureswith their partners in certain contexts.

Online banking, as well as being convenient, was easyto use.

A lack of confidence with the Internet often led to asense of discomfort with Internet banking, and at timestaking the guise of security concerns.


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Relevance for Mobile BankingIf the mobile service offers something of value/convenience to the customers, they will use it,

despite any concerns about security or privacy.We asked our interviewees about possible uses of mobiles - checking account balances, paying bills andauthentication of access to accounts were mentioned.

The service must be easy to use. Other studies haveshown that people's perception of security when doingon-line transactions depends on the simplicity of thesite and on the availability of user support. Eg Carparking project


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Relevance for Mobile Bankingcont

Trust , rather than privacy, identity and security,emerged as the single most important variable in theuse of Internet banking.

We also saw in our study how a lack of expertise andfamiliarity with Internet use and Internet banking wasconverted into security concerns. The same should

apply to mobile banking.


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Relevance for Mobile BankingcontSmaller micropayment activities werent seen asparticularly useful. Compare Oyster and Octopusprojects.

Banks should concentrate on engendering greater trustin mobile banking, if they want to lessen fears.

Increasing customers sense of control overtransactions, personalising information and making

access to mobile banking easier to use will help indeveloping trust. Technical specifications alone do notmake for trust.

Documents

Finance Keynote Margaret Jackson[1]