Followup of Prof. Honeymans lecture, by Galina Schwartz U of M Business School

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Follow-up of Prof. Honeymans lecture,
by Galina Schwartz U of M Business
School

• My comments are in italics, and underlined . They
  are at the end of almost every Prof. Honeymans
  slide

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electronic payments and emerging technologies

• peter honeymancenter for information technology
  integration

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problem statement

• risk management
• elevate trustworthiness of electronic payments to
  card present status
• simple, practical, inexpensive
• Sounds like real Finance?

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emerging technologies

• computing moores law dictating faster and
  smaller computers at a constant price
• smartcards are the ultimate mobile computer
• communications
• ubiquitous internet
• wireless data communications
• biometric identification
• Question how to alter your fingerprints?

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smartcards

• tamper resistant
• secure key storage and management
• personal cryptography assistant

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how can smartcards be applied?

• secure identification
• trust platform
• to do solve the infrastructure problem
• Is the infrastructure a big problem?
• Related question
• How to make reverse engineering more difficult?

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what is this?

• ?
• a mobile phone? NO!
• portable, disposable smartcard reader
• solves the infrastructure problem

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emerging communications technologies

• gsm
• europe now, n. america coming on line
• europe gprs, umts
• japan i-mode
• cdpd
• n. america now, will fade from the scene
• n.a. telecoms dont get it
• wap
• and other futile efforts to occupy this space

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the convergence

• pda mobile phone bluetooth smartcard
• offers opportunity for secure, authenticated
  payments
• Why Eurore is so advanced in cellular phones???
• catch-up
• Supply and demand sides
• Supply technologically possible
• Demand Is it really there?

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biometrics

• goal personal identification
• fingerprint
• faceprint
• retina or iris scan
• voice recognition
• questionable technical foundation to date
• secrecy abounds
• Compare this reasoning with the reasons behind
  the disclosure requirements (still, see slide 12
  OPEN! is important)
• pros and cons are both there

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biometrics?

• revocation is difficult
• fingerprints and other durable identifiers
• spoofing is easy
• fingerprint
• voice recognition
• compare to present biometric identification
• signature on paper
• demeanor of customer

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multi-factor identification

• combination of methods
• secure crypto platform
• biometrics, possibly more than one
• can this offer risk management comparable to
  card present transaction?
• maybe
• data collection yields to pattern recognition
  -- m. mcluhan

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promoting (and preventing) competition

• the wap re-intermediators
• wap must die
• internet protocol will be the instrument of its
  death!
• open systems
• has huge advantages in risk management
• gsm protocols
• french bank card
• aes (des replacement)

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next steps

• explosive growth in internet deployment
  application space will continue unabated
• it will continue to accelerate!
• this provides fertile ground for innovation,
  development, and deployment
• Subject MAKE MONEY FAST
• omputing ommuniation
• It is a great logo. Is not it? It is clear,
  elegant and
• greedy, but convinsing exactly as the markets
  are!

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thank you for your attention
http//www.citi.umich.edu/
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Relating technology to International Finance

• Volatility we expect to grow ? UP.
• Specifically, Financial Industry will be MORE
  risky business
• Also Telecoms huge risks
• Real risks will be very much dependant on
  regulations
• Who wins is any scenario?
• Computer security specialists