The business case for eBanking

Banks are just waking up to eBanking's potential to revolutionize their business. With good security, they can lead the revolution to a brighter future. Without it, they run the risk of being left behind. If you don't like change, you're going to like irrelevance a lot less.

The business case for eBanking rests on four pillars: cost control, increased utilization, competition and innovation.

  • Cost control. When customers do more online, banks need fewer branches, smaller call centers. Self-service online can cut the cost of a transaction by up to 80 percent.
  • Increased utilization. Spending increases when people prefer your service and cards – the ‘top of wallet' effect. Similarly, if people trust online services they will do more online with a provider they trust.
  • Competition. Banks face increasing competition from online payment providers such as PayPal, and mobile phone companies that want to provide payment services. Also, non-traditional businesses, such as supermarkets, are now offering a growing range of banking services. Improved eBanking services can enhance and differentiate traditional banks and increase loyalty.
  • Innovation. Increased security makes each customer more valuable and more profitable by enabling greater uptake of new online services. It lets branches and call centers focus on high-value relationship banking and high-touch services. It also enables new services such as electronic invoicing, for example by utility companies, and reselling identity services to other firms or government bodies.

The real cost of insecurity

  • Direct losses to online criminals
  • Indirect costs of defending against attacks and fixing security breaches
  • Reputational costs when customers switch to banks they perceive as "safer"
  • Opportunity costs when customers transact less online and don't use new services

The security paradox

When security is poor, everyone focuses on the cost of fraud and the difficulty of developing new services in an insecure environment. This makes it hard to upgrade security and hard to develop new business opportunities.

Trust builds business

Security is not just a cost of business to be weighed against losses to fraud. "Good enough" security isn't good enough anymore. It is much more than that. Strong security creates the trust that delivers the full benefit of eBanking.

If banks want to attract customers, upsell new services and out-compete their rivals, they need good security. It's not just a cost of business. It's good for business.


Gemalto gives banks the opportunity to offer their customers new and exciting card designs, next generation dual interface contactless cards, gift cards and mobile payments. We also give issuers the means to easily combine different services, such as payment and public transport passes.