Lloyds TSB - moves a step ahead

Lloyds TSB has taken a step forward in the race to turn ID security into a customer benefit. By introducing real-time two factor authentication for customers, the company has recognised the fact that the use of false identity is actually more salient with customer than data theft per se. It also recognises that technology solutions can be made consumer-relevant. And that 'mop-up advice' is not a sufficient response to this growing anxiety. Customers' sense of vulnerability in on-line environments is escalating, and they are particularly anxious at the point of sign-on and transaction commitment. This fear is a real barrier to the utilisation of self-service channels line web and mobile. A point-solution like hardware-based 2FA is a good first step. It shows the bank is trying to protect customers data. And in consumer behaviour terms, this is a not a big step for customers to take. Emotionally, it feels like a strong preventative solution. We expect 2FA solutions to take hold in the short term. On-line sign-on is a key moment of truth. Of course, what is doesn't do is offer any of the benefits of single sign on. Nor does it protect customers' identities in off-line environments. More pervasive digital identity solutions are required for that...