Strong authentication in e-banking.

A Status Update after 10 Years

Niklas van Ingelandt

1989 SEB Interbank Payments1995 Derivatives Trading1998 SEB e-banking2001 IT-security Manager NRPB2004 Group Security

Stockholms Enskilda BankfoundedStockholms Enskilda Bankfounded

Stockholms Enskilda Bankand Skandinaviska Bankenmerge

Stockholms Enskilda Bankand Skandinaviska Bankenmerge

SEB International SEB International

18561856 19721972

1982198218641864 Skandinaviska Bankenfounded in GöteborgSkandinaviska Bankenfounded in Göteborg

1800 1900 2000

19971997 Trygg HansaTrygg Hansa

1999 1999 BfG GermanyBfG Germany

19981998 Acquisition of three Baltic banksAcquisition of three Baltic banks

2000 2000 BOS PolandBOS Poland

SEB’s historySEB’s history

2006 SEB 150 years2006 SEB 150 years

2004 Codan - Denmark2004 Codan - Denmark

2004 Bank Agio - Ukraina2004 Bank Agio - Ukraina

SEB worldwide

MarketHome market in 10

countries200 million

inhabitants

SEB• 5 million customers• 2 million internet clients• 670 branch offices• ~19 000 employees

In addition SEB has local presence in many other countries and an extensive international network

• Sweden

• Brazil

• China

• Denmark

• Estonia

• Finland

• France

• Germany

• Great Britain

• Latvia

• Lithuania

• Luxemburg

• Norway

• Poland

• Russia

• Singapore

• Spain

• Switzerland

• Ukraine

• USA

SEB Group

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

SEB started using tokens from Vasco in 1995.

The token first used was the DP500

It was used in our Telebank service (SESAM)

1995

SEB’s first Internetbank was launched in small scale.

SEB employees

Vasco Digipass 500 was used

1996

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

1998

The DP300 was considered to expensive with features that we deemed not necessary.

Vasco listened to our needs and came up withthe DP250.

1999

From now on the DP250 is the only one sent tocustomers.

175.000 Digipass was delivered

1999

The DP300C was introduced to clients with special needs.

More than 200.000 Digipass was deployed.

2000

2004

Internet usage by age group

Sweden98%

93%89%

81%

54%

16-24 25-34 35-44 45-54 55-74

(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

Control at glanceTransaction - intensive800.000 customers4,3 mn visits per month

Online Banking for private customers

No of online banking customers

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

1997 1998 1999 2000 2001 2002 2003 2004 2005

What is important?

0

5

10

15

20

25

Userfriendliness Access to site Security Speed Fees/Charges Variety offinancial services

%

Delivery

SEB uses a third party to initialize and personalizethe Digipass.

Token is given directly to the customer upon signingfor 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 implementationor malfunction.

People tend not to be careful of their token.Many needs to be unlocked more than once.