1. Follow-up of Prof. Honeyman’s lecture, by Galina Schwartz U of M Business School My comments are in italics, and underlined. They are at the end of almost every Prof. Honeyman’s slide…

2. electronic payments — and — emerging technologies peter honeyman center for information technology integration

3. problem statement u risk management u elevate trustworthiness of electronic payments to “card present” status u simple, practical, inexpensive u Sounds like real Finance?

4. emerging technologies u computing: moore’s law dictating faster and smaller computers at a constant price u smartcards are the ultimate mobile computer u communications u ubiquitous internet u wireless data communications u biometric identification Question: how to alter your fingerprints?

5. smartcards u tamper resistant u secure key storage and management u “personal cryptography assistant”

6. how can smartcards be applied? u secure identification u trust platform u to do: solve the infrastructure problem Is the infrastructure a big problem? Related question: How to make reverse engineering more difficult?

7. what is this? u  u a mobile phone? NO! u portable, disposable smartcard reader u solves the infrastructure problem

8. emerging communications technologies u gsm u europe now, n. america coming on line u europe: gprs, umts u japan: i-mode u cdpd u n. america now, will fade from the scene u n.a. telecoms don’t “get it” u wap u and other futile efforts to occupy this space

9. the convergence u pda + mobile phone + bluetooth + smartcard u offers opportunity for secure, authenticated payments Why Eurore is so advanced in cellular phones??? [catch-up] Supply and demand sides: Supply: technologically possible Demand: Is it really there?

10. biometrics u goal: personal identification u fingerprint u faceprint u retina or iris scan u voice recognition u questionable technical foundation to date u secrecy abounds Compare this reasoning with the reasons behind the disclosure requirements (still, see slide 12 : OPEN! is important) [pros and cons are both there]

11. biometrics? u revocation is difficult u fingerprints and other durable identifiers u spoofing is easy u fingerprint u voice recognition u compare to present biometric identification u signature on paper u demeanor of customer

12. multi-factor identification u combination of methods u secure crypto platform u biometrics, possibly more than one u can this offer risk management comparable to “card present” transaction? u maybe u “data collection yields to pattern recognition” -- m. mcluhan

13. promoting (and preventing) competition u the wap re-intermediators u wap must die u internet protocol will be the instrument of its death! u open systems u has huge advantages in risk management u gsm protocols u french bank card u aes (des replacement)

14. next steps u explosive growth in internet deployment application space will continue unabated u it will continue to accelerate! u this provides fertile ground for innovation, development, and deployment  Subject: MAKE MONEY FAST u €omputing + €ommuni€ation$ It is a great logo. Is not it? It is clear, elegant and greedy, but convinsing: exactly as the markets are!

15. thank you for your attention http://www.citi.umich.edu/

16. Relating technology to International Finance u Volatility – we expect to grow  UP. u Specifically, Financial Industry will be MORE risky business u Also: Telecoms: huge risks u Real risks will be very much dependant on regulations u Who `wins` is any scenario? u [Computer security specialists]