KOBIL Systems, an IT security company headquartered in Germany, has launched a security solution that complies with the forthcoming European Union Payment Services Directive 2 (PSD2).
The Dual 7 Layers of Security approach developed by KOBIL, which is the only one of its kind in the world to date, allows for stricter customer authentication without restricting the end user experience.
“PSD2 will completely change the way a bank’s customers pay. The industry cannot ignore these facts. Just as Industry 4.0 has had a major impact on the industrial sector, these EU regulations will revolutionise the entire financial sector,” explains Ismet Koyun (pictured), founder and CEO of KOBIL Systems GmbH. “As a technology partner with over 30 years of experience and expertise in the IT security sector, the Dual 7 Layers of Security approach is our response to the hurdles and opportunities presented by the updated EU guidelines. We would like to communicate this answer together with our partners throughout Europe. At its core, PSD2 enables banks to create exciting new business models. KOBIL is committed to implementing innovations within this framework safely and in compliance with PSD2.”
PSD2 will in particular fundamentally change security requirements. Since 13 January, two-factor authentication is now a prerequisite for electronic payment transactions in the European payments area. This is intended to ensure greater customer security. Before PSD2, banking systems depended on direct interaction with the customer, whereby banks themselves have all the information they need to determine whether a transaction is counterfeit. The provision of a secure environment and the development of financial services – while ensuring consumer protection against fraud and accountability – will therefore be a major challenge for banks.
Strong customer authentication, together with secure communication, makes it possible to master this challenge. KOBIL’s Dual 7 Layers of Security solution takes a holistic approach and offers a robust, agile and compliant solution. This secures the identity of end users at seven different levels and makes any kind of fraud attempt almost impossible. KOBIL’s mIDentity Application Security Technology is used here. With mAST, KOBIL offers an end-to-end security platform for strong customer authentication and authorisation using trusted identities for continuous, binding and reliable communication between banks, third parties and their customers. KOBIL’s time-tested and market-proven Public Key Infrastructure (PKI) solution uses advanced shielding, protection, prevention, detection and reporting mechanisms.
Even before the login process, KOBIL starts securing the device and application. For example, KOBIL safely checks the device on which the dedicated application runs before the application is started, and binds the application to this device, making it personalised for the user. In addition, the solutions look beyond the technical aspects of security and assess the situation taking into account the real-time context: time, place and situation. KOBIL offers Titanium security with the Digitanium Channel with Dual 7 Layers of Security, providing dual communication technology to provide a secure transport route for sensitive data between user and bank.
There is no doubt that PSD2 presents banks with a number of challenges. Therefore, banks and other financial service providers must carefully weigh up their strategic options. This can lead to the development of different orientations – banks can choose to be PSD2 compliant with minimal effort. You can also use PSD2 as a tool to invest in agility and customer loyalty.
“Open banking in particular has many advantages,” says Ismet Koyun, explaining the opportunities offered by PSD2: “But it is those particularly forward-looking banks that are building their own ecosystems and are setting up their own businesses.”