Thought Leaders in Financial Technology: Hakan Nordfjell, Senior VP of eBanking and eCommerce at Gemalto (Part 4)

Hakan Nordfjell: For example, I know that I have identified himself and enrolled with that Third Party Provider (TPP). I can trust the service because when the TPP does the request on my behalf, I will be authenticated. Where we will have problems to solve for the open banking to flourish is when the banks ask for a single security. You need to have something that is more central which will help the TPP and the end user. I think that national banks will see that that’s the way for them to boost the business.

Slowly, we will move in that direction. From my point of view, we want to help flourish that market and also see that the more FinTech companies or TPPs that are coming into that market, the more pressure will be put on the whole community to make it happen.

Sramana Mitra: What is your analysis of the whole Equifax disaster?

Hakan Nordfjell: I haven’t looked very deeply into that. In some sense, we see that all over. Gemalto is also providing the HMS for all of these types of databases where you should actually encrypt your data strongly. We’ve seen it with quite many others that have been breached in similar ways.

I would say the end user or the consumer of these type of services are now used to it in some sense. In our domain, it was catastrophic because it puts the mindset of everyone consuming the services that we, as an industry, are not able to handle their data securely. In the long run, governments might restrict what you can share and what you can do. In the end, the more access that I have to the digital life of a person, the more strongly I can make it.

When I’m not able to access that, I have a problem as a company to build a digital profile around an end user. If I have that, I need to use some sort of strong authentication. In the end, the end user might experience more friction because I will make it more difficult for the end user. If companies like Equifax have problems with keeping the data safe, we will see regulations coming on what data you can keep and how you can keep it.

Sramana Mitra: I think the whole data issue is becoming central at this point.

This segment is part 4 in the series : Thought Leaders in Financial Technology: Hakan Nordfjell, Senior VP of eBanking and eCommerce at Gemalto
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