Mar 27, 2007

Study Shows Banks Could Increase Profitability By $8.3 Billion Per Year If Stronger Security Measures Implemented

Los Gatos, Calif.

31 Million Would Start Banking Online and 39 Million Would Increase Online Banking Usage If Offered Identity Protection Software

TriCipher, a leading provider of strong authentication solutions to protect against fraud and identity theft, today announced that a recent TriCipher Consumer Online Banking Study, conducted by Javelin Strategy and Research, reveals that consumers would take advantage of more online banking services if banks provided stronger identity protection.

The TriCipher Consumer Online Banking Study included 3,349 respondents from a random-sample panel that was representative of the U.S. population. Surprising findings uncovered that nearly 1 in 5 - estimated at 26 million - adult consumers have been victims of identity theft or fraud in their lives. And, according to survey results, over 88 million online banking customers would switch banks, or reduce online banking usage, if news reports exposed their individual institution as compromised.

The survey discovered that banks could dramatically increase their bottom line if they provided customers with identity protection software to securely log in to online banking websites. In fact, not only would an expected 39 million online users increase their online banking activity if their bank offered free identity protection software, but 31 million customers who don’t presently bank online would feel safe enough to begin online banking if offered the software.

"Sixty-seven percent, or 150 million, U.S. consumers don’t bank online today," said Stephen Knighten, Javelin Strategy and Research statistical analyst. "Our study results show that offering consumers strong online measures creates highly significant implications for the banks. We estimate that the industry could realize a gain of $8.3 billion per year through customer adoption and increased loyalty by offering strong identity protection software to their customers."

When asked if they would download identity protection software from their financial institution, 62%, or 102 million, consumers said that they would be likely to do so. Consumers’ willingness to download security software to protect financial information was further confirmed when 69% of respondents, or 113 million consumers, reported having downloaded some form of security software in the last six months.

"We’re very excited by the survey results that prove that consumers want more innovative online banking features and that they’re more than willing to take the extra security steps to get those features. With recent news of more sophisticated fraud and identity theft attacks, we believe that customers are comfortable downloading innovative software to increase access to financial information and banking functions," explained John De Santis, TriCipher CEO.

After having downloaded, installed, and logged into a simulated online banking website using identity protection software, an overwhelming 4 out of 5 respondents found the process easy – and well worth the effort for more security.

About TriCipher, Inc
TriCipher, Inc. provides a unified authentication infrastructure to protect the B2B and B2C online channel against fraud and identity theft. The TriCipher Armored Credential System™ (TACS) is the first authentication system that enables companies to deploy and manage multiple types of credentials from a single infrastructure. Through this flexible “Authentication Ladder,” TriCipher protects customer investment by adjusting authentication strength to defeat new threats and to meet regulatory changes without the need to implement a new infrastructure. Founded in 2000, TriCipher is headquartered in Los Gatos, California. The company is funded by RBC Technology Ventures, ArrowPath Venture Capital, Intel Capital, Trident Capital, and Wasatch Venture Fund. For more information, visit TriCipher on the web at www.tricipher.com.

About Javelin
Javelin is the leading provider of independent, industry-specific, quantitative research and strategic direction for payments and financial services initiatives. Javelin rigorously researches technology issues, industry trends, attitudes and activities of consumers, small businesses, institutions, processors, merchants, billers, and other organizations in order to deliver relevant, high-impact findings. Javelin can be found on the Web at www.javelinstrategy.com.