If Nick Ogden has his way, signature-based
authorisation could be a thing of the past.
authorisation could be a thing of the past.
Ogden, chairman and CEO of Voice Commerce, a
biometric voice authorisation company based in the UK, said that as
payments technology continues to evolve at lightning pace, the days
of needing physical authorisation – with all its time delays, fraud
risk and merchant hassle – are over.
biometric voice authorisation company based in the UK, said that as
payments technology continues to evolve at lightning pace, the days
of needing physical authorisation – with all its time delays, fraud
risk and merchant hassle – are over.
Voice Commerce has teamed with NCR Corp to test
a biometric voice authentication system that would let people
withdraw money from automated teller machines without their ATM
cards.
a biometric voice authentication system that would let people
withdraw money from automated teller machines without their ATM
cards.
Ogden said his company’s technology enables
people to make a withdrawal by entering their mobile phone number
into an ATM. The system places a call to the phone, allowing the
person to authenticate himself by matching his voice against an
existing biometric voiceprint.
people to make a withdrawal by entering their mobile phone number
into an ATM. The system places a call to the phone, allowing the
person to authenticate himself by matching his voice against an
existing biometric voiceprint.
“The mobile phone serves as the gateway, and
the limits are set by the financial institution, but there is no
reason why we can’t use this technology to allow voice
authorisation of a host of transactions on any connective device
that allows us sufficient data for two-factor authorisation,” Ogden
told EPI.
the limits are set by the financial institution, but there is no
reason why we can’t use this technology to allow voice
authorisation of a host of transactions on any connective device
that allows us sufficient data for two-factor authorisation,” Ogden
told EPI.
“As a starting point, though, we want to use
the mobile phone as a means of augmenting authorisation at ATMs,
and for P2P [person-to-person], which both seem like natural
markets to begin with.”
the mobile phone as a means of augmenting authorisation at ATMs,
and for P2P [person-to-person], which both seem like natural
markets to begin with.”
Ogden said he has much broader goals for the
future, however. A renowned payments veteran, he was instrumental
in the construction of Europe’s first on-line store in October 1994
and in the development of one of the first bank-endorsed e-commerce
initiatives, BarclaySquare, in 1995.
future, however. A renowned payments veteran, he was instrumental
in the construction of Europe’s first on-line store in October 1994
and in the development of one of the first bank-endorsed e-commerce
initiatives, BarclaySquare, in 1995.
Ogden founded the multi-currency processor
WorldPay and led the company through its growth to over 270
employees with 20,000 customers in 120 countries and processing
transactions in excess of $2 billion per annum.
WorldPay and led the company through its growth to over 270
employees with 20,000 customers in 120 countries and processing
transactions in excess of $2 billion per annum.
“Voice Transact signatures will transform the
way that banking and financial services transactions are conducted
to provide a secure and convenient global standard for worldwide
use,” he said.
way that banking and financial services transactions are conducted
to provide a secure and convenient global standard for worldwide
use,” he said.
“We believe that voice-signed transactions and
payments will become as commonplace as chip and PIN because they
address key security concerns by delivering convenience, control,
and responsibility to the consumer and the substantial efficiencies
and benefits to the financial institutions concerned.”
payments will become as commonplace as chip and PIN because they
address key security concerns by delivering convenience, control,
and responsibility to the consumer and the substantial efficiencies
and benefits to the financial institutions concerned.”
He said the system, Voice Transact, integrates
seamlessly with existing payment and transaction processing
systems, and added that a new client could be up and running within
six weeks of joining the service.
seamlessly with existing payment and transaction processing
systems, and added that a new client could be up and running within
six weeks of joining the service.
From a consumer perspective, the system is easy
to use. Consumers are asked to create an anonymous voice signature,
which uses a biometric that they then use to ‘sign’ for payments
and many other financial transactions. It seamlessly links to
VoicePay, the consumer-facing voice-payments system that was
announced in May 2007 by Voice Commerce.
to use. Consumers are asked to create an anonymous voice signature,
which uses a biometric that they then use to ‘sign’ for payments
and many other financial transactions. It seamlessly links to
VoicePay, the consumer-facing voice-payments system that was
announced in May 2007 by Voice Commerce.
Mobilising the paper cheque
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Voice Transact enables financial institutions to lower risk,
communicate far more securely and efficiently with their customers
while providing increased confidence and reductions in fraudulent
transactions. Significantly, it also transfers the signing
responsibility back to the consumer, in exactly the same way that
cheques are signed.
“This is a mobile ACH [automated clearing
house] really, when you think about it,” Ogden said. “We are just
mobilising the old paper cheque, and in way that can do many more
things for banks and consumers.”
house] really, when you think about it,” Ogden said. “We are just
mobilising the old paper cheque, and in way that can do many more
things for banks and consumers.”
The deployment of Voice Transact is extremely
timely: recent Harris Research suggested around 80 percent of
consumers are concerned about fraudulent access to their bank
accounts. In addition to reducing fraud, Ogden said Voice Transact
will enable financial institutions to tap into new markets, such as
mobile payments. Mobile wallets are projected to reach 1.4 billion
users by 2015 (or 25 percent of mobile users worldwide), according
to recent research by Edgar Dunn & Co.
timely: recent Harris Research suggested around 80 percent of
consumers are concerned about fraudulent access to their bank
accounts. In addition to reducing fraud, Ogden said Voice Transact
will enable financial institutions to tap into new markets, such as
mobile payments. Mobile wallets are projected to reach 1.4 billion
users by 2015 (or 25 percent of mobile users worldwide), according
to recent research by Edgar Dunn & Co.
The technology could also be used with a new
type of P2P money transfer model, in which a remote user uses voice
authorisation to grant permission for another person to withdraw
funds from an account. This process could have big appeal in the
remittance market, for example, with a sender instructing a
recipient to access the sender’s account at an ATM.
type of P2P money transfer model, in which a remote user uses voice
authorisation to grant permission for another person to withdraw
funds from an account. This process could have big appeal in the
remittance market, for example, with a sender instructing a
recipient to access the sender’s account at an ATM.
When the call is made, the sender could
authorise the transaction from miles away and the recipient would
receive the funds.
authorise the transaction from miles away and the recipient would
receive the funds.
Ogden, who said NCR plans to begin testing the
technology with an unnamed bank in the Middle East, added that
other announcements are forthcoming about additional Voice Transact
clients.
technology with an unnamed bank in the Middle East, added that
other announcements are forthcoming about additional Voice Transact
clients.
The technology is reliable but it is not
perfect, as many voice authorisation systems struggle in loud
places and have trouble recognising users if they have a cold.
Ogden said that Voice Transact has developed a backup system of
mobile phone callbacks with challenge questions in case voice
authentication fails.
perfect, as many voice authorisation systems struggle in loud
places and have trouble recognising users if they have a cold.
Ogden said that Voice Transact has developed a backup system of
mobile phone callbacks with challenge questions in case voice
authentication fails.
Though it would seem less secure than wire
transfers or paper cheques, Ogden stressed that voice authorisation
is actually more secure than signatures or PINs.
transfers or paper cheques, Ogden stressed that voice authorisation
is actually more secure than signatures or PINs.
Perhaps most importantly, voice biometrics is
one of the only two-factor authorisation methods that can be used
cross-channel.
one of the only two-factor authorisation methods that can be used
cross-channel.
Ogden said the Voice Transact system can
support 10 different kinds of transactions, including mobile
commerce, business-to-business payments, P2P payments, ATMs and
account transfers.
support 10 different kinds of transactions, including mobile
commerce, business-to-business payments, P2P payments, ATMs and
account transfers.
And the applications extend into every
interaction between customers and their banks, Ogden said. For
example, when banks raise a credit card account limit, they
typically notify the cardholder by mail, and only after the fact,
something US consumers long have complained about.
interaction between customers and their banks, Ogden said. For
example, when banks raise a credit card account limit, they
typically notify the cardholder by mail, and only after the fact,
something US consumers long have complained about.
Ogden said that his system could allow a bank
to place automated calls to cardholders, asking them to accept or
decline the increased credit limit by voice authorisation,
improving customer relations while helping the institution keep an
eye on unneeded credit extensions in a jumpy credit market.
to place automated calls to cardholders, asking them to accept or
decline the increased credit limit by voice authorisation,
improving customer relations while helping the institution keep an
eye on unneeded credit extensions in a jumpy credit market.
A consumer using an ATM could receive a call
moments later with an offer of a special consumer loan, and if the
consumer agrees and voices authorises, the loan could be
transferred instantly into the customer’s account.
moments later with an offer of a special consumer loan, and if the
consumer agrees and voices authorises, the loan could be
transferred instantly into the customer’s account.
“That is the real power of this technology,”
Ogden said. “It allows the bank to create a much more meaningful
relationship with the consumer and to do so in a non-intrusive way,
through a technology that is always on the customer.”
Ogden said. “It allows the bank to create a much more meaningful
relationship with the consumer and to do so in a non-intrusive way,
through a technology that is always on the customer.”
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