Presenting a mobile device for authentication and electronic signature with legal effect at the E-Banking Summit & Awards 1000+ event

11/10/2017 printable version

The Electra Development Business Line of Cardinal Kft. gave a presentation titled 'Strong client authentication and electronic signature with legal effect on my mobile phone' at the E-Banking Summit & Awards 1000+ conference held on 11 October 2017.

E-Banking Summit is currently the most significant fintech conference in Hungary. The main topics at this autumn's event included:

  • digitisation processes in the financial sector,
  • digital administration with legal effect,
  • digital banking,
  • digital transformation, and
  • the FinTech revolution and the business model changes it brings about.

Gyimesi István, Cardinal Kft's Internet Banking Development head, presented an upgraded ViCA client authentication device integrated with a new service: an electronic signature device having legal effect based on a qualified certificate.

The ViCA virtual chipcard application is a product of the technological research and development efforts Cardinal Kft. made over the past few years and is currently in use by three financial institutions (K&H Bank, Raiffeisen Bank, Magyar Takarékszövetkezeti Bank) and several co-operative savings associations in the retail and corporate segments they are active in. Solutions including the mobile client authentication device will go live in three additional commercial banks in the oncoming months. The application is free to install on any mobile devices running iOS, Android or Windows operating systems and can be used with the banking clients' preferred internet banking, mobile banking as well as installed, client and mobile applications.

The two-factor authentication (2FA) method implemented in the device meets all strong customer authentication (SCA) requirements set out in the PSD2 regulations. In addition to authentication, it also provides push notification and messaging functions, which allow banks to send sensitive financial information or target marketing messages at their clients via a protected channel. This function will grant a cost-effective solution to account managing financial institutions in 2019, when the Instant Payment System (AFIR) is introduced in Hungary, since it will send all client notifications and status reports prescribed by AFIR standards to the mobile devices of the parties participating in the payment process without any extra costs.

In cooperation with the dominant domestic trust service provider of the Hungarian electronic signature market, Cardinal integrated Microsec-issued certificates with ViCA, supplementing its ViCA mobile application with a qualified signature device having legal effect. Clients obtaining a qualified signature certificate can manage all their contractual matters through an online connection with their account managing bank, replacing thus the current branch administration process entirely.

Microsec operates as a service provider qualified to provide services in the EU as per the relevant eIDAS regulations since 1 July 2016, and is entitled to issue qualified stamp certificates compliant with eIDAS regulations and also to provide eIDAS-qualified time stamping services. The Company has been a full member of ETSI, the organisation responsible for creating European electronic signature standards and regulations, since 2007.

The business processes to be signed using the qualified certificate linked to the ViCA device can be linked to the banks' background system and existing administration and data processing processes through API-based integration.

By reducing client presence at their branches, financial institutions can decrease their operating expenses considerably, or implement new, value-added services in the physical client areas already available.

Obviously, their signature devices also allow clients having an electronic certificate with legal effect to use electronic services of other service providers (insurance companies, public utilities, offices managing public administration processes) as a digital entity, through an authenticated procedure.

Summing it up, Cardinal Kft's enhanced-functionality mobile device provides the following services in the online electronic domain:

  • PSD2 SCA-strength (two-factor) client authentication,
  • Electronic signature of digitised and electronic documents with legal effect,
  • Free communication of client notifications, the number of which will increase due to AFIR requirements, between the client and the account managing financial institution.

You can download the full presentation document here.

You can find out more about the E-Banking Summit and its full programme by visiting the web page of the event.

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