Strong authentication in e-banking. A Status Update after 10 Years

Niklas van Ingelandt 1989 SEB Interbank Payments 1995 Derivatives Trading 1998 SEB e-banking 2001 IT-security Manager NRPB 2004 Group Security

SEB’s history 1800 1900 2000 2000 1972 1856 2004 Codan - Denmark 1864 Stockholms Enskilda Bank and Skandinaviska Banken merge 1856 Stockholms Enskilda Bank founded 1972 2000 BOS Poland 2004 Codan - Denmark Skandinaviska Banken founded in Göteborg 1864 1982 SEB International 2004 Bank Agio - Ukraina 1997 Trygg Hansa 2006 SEB 150 years 1998 Acquisition of three Baltic banks SEB is a bank with a strong financial heritage and has existed as a financial institution for 150 years SEB was founded in 1856 by André Oscar Wallenberg and has since then held a strong position in the Swedish banking market During the last couple of years the structure of SEB has changed and SEB is today a very different bank from when it was founded 1999 BfG Germany

SEB worldwide SEB 5 million customers 2 million internet clients Sweden Brazil China Denmark Estonia Finland France Germany Great Britain Latvia Lithuania Luxemburg Norway Poland Russia Singapore Spain Switzerland Ukraine USA Market Home market in 10 countries 200 million inhabitants SEB 5 million customers 2 million internet clients 670 branch offices ~19 000 employees Today SEB has its home market in 9 countries SEB has local presence in 19 countries SEB has 4,5 million customers SEB has 670 branch offices and around 18.000 employees In addition SEB has local presence in many other countries and an extensive international network

SEB Group The SEB Group is a Northern European financial banking group which is focused on large companies, institutions and private individuals.

1995 SEB started using tokens from Vasco in 1995. The token first used was the DP500 It was used in our Telebank service (SESAM)

1996 SEB’s first Internetbank was launched in small scale. SEB employees Vasco Digipass 500 was used

1998 SEB’s Internetbank was launched in large scale. 150.000 Digipass was delivered to customers. 90% to Retail Customers. 50.000 was sent during 1 month! Vasco Digipass 300 was used

1999 The DP300 was considered to expensive with features that we deemed not necessary. Vasco listened to our needs and came up with the DP250.

1999 From now on the DP250 is the only one sent to customers. 175.000 Digipass was delivered

2000 The DP300C was introduced to clients with special needs. More than 200.000 Digipass was deployed.

2004

Internet usage by age group Sweden (Source: Statistics Sweden)

Swedish online banking success factors Efficient banks High-tech banking infrastructure High level of education Good knowledge of the English language High banking penetration High PC penetration High Internet penetration

Online Banking for private customers Control at glance Transaction - intensive 800.000 customers 4,3 mn visits per month

No of online banking customers

What is important? %

Delivery SEB uses a third party to initialize and personalize the Digipass. Token is given directly to the customer upon signing for the appropriate service.

Mobility The token is small and therefore easy to bring along. It can be used for several of our services. Only one token is needed. Most customer use it at home or at their office.

Mobility No program needs to be installed. Works on every PC with Internet.

Recycling Digipass that are returned to us are recycled. Digipass that can not be recycled is disposed of in an environmental friendly way.

Problems? Very few problems regarding implementation or malfunction. People tend not to be careful of their token. Many needs to be unlocked more than once.