The FFIEC Guidelines and Browser-Based Cash Management Security: What is Your Vendor Doing For You?

Report Summary

The FFIEC Guidelines and Browser-Based Cash Management Security: What is Your Vendor Doing For You?

The number of U.S. commercial banks offering multi-factor authentication to secure browser-based cash management solutions will increase from 7% to 55% by year-end 2006, creating a paradigm shift within the industry.

Christine Barry
Research Director

Boston, MA, April 21, 2006 – In a new report, The FFIEC Guidelines and Browser-based Cash Management Security: What is Your Vendor Doing For You?, Aite Group examines the impact of the new guidelines on commercial banks as well as the initiatives cash management technology providers have in place to ensure customer compliance. The report highlights that 89% of the vendors interviewed currently either offer or have integrated with token-based security. However, of those same vendors, 75% believe that software-based solutions will be the more popular security option deployed going forward.

Now, more than six months since the new guidelines were announced, security has become a top priority for most banks, regardless of their size. Aite Group expects that while there will be exceptions, most banks will adopt strategies based on their size and experience with security technologies.

"While many large banks will do their own due diligence and will form independent partnerships with security vendors, approximately 85% of U.S. banks planning to secure their browser-based cash management solutions with multi-factor authentication will depend on the security options offered by their online banking technology vendors," notes Christine Barry, Director of Research with Aite Group and author of the report. "Since most vendors will not be rolling out their new security offerings until the third and fourth quarters of this year, there is a high probability that some banks are going to miss the deadline, despite their efforts."

This report describes the current and planned security offerings and strategies of eight of the leading U.S. browser-based cash management providers including: Banklink (Fiserv), Bottomline Technologies, Corillian, Digital Insight, FUNDtech, Jack Henry, P&H Solutions, and S1. These eight vendors provide cash management solutions to more than 2,900 U.S. banks. It also describes their partnerships with security vendors such as Vasco, RSA Cyota, TriCipher, PassMark, and Strikeforce.

This is a 33-page Impact Report. Clients of Aite Group's Wholesale Banking service can download the report.

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