Smart insights for a digital world

Issue 1 2015

QUICKFIRE CONNECTIVITYThe technology that’s connecting everything – wherever you are

WHAT MILLENNIALS WANT FROM MOBILE BANKING • eID COMES TO EUROPE • CONTACTLESS ON THE TUBE

It may be the most basic of handsets or a top-of-the-range tablet. We may use it to transfer money to friends and family, answer work emails or control our home thermostat from afar. Whatever the device, our lives are more mobile than ever – and increasingly, it’s not just phones and tablets that we want to connect.

As users, we demand instant connectivity, ease of use and value for money. And we demand that our data, both personal and corporate, is secure. This need has become especially acute as data breaches hit the headlines and more of our transactions are online or mobile. These are all things no enterprise can afford to ignore.

On page 10, we look at what people have been saying about Apple Pay, which uses the secure element to protect users’ payment information. On page 18, we hear from millennials about their love for mobile banking – and their concerns about security. And on page 16, we go underground to learn about why the world’s oldest metro system has adopted contactless payment.

There’s plenty more in this issue, from an interview with Beecham Research’s Robin Duke-Woolley on putting users at the heart of the Internet of Things to a look at how big data can make our cities better places to live. We also look at Europe’s major eID initiative, B2B mobile marketing and why there’s still life in SMS.

In case you missed it, earlier this year, we announced the acquisition of SafeNet, a giant in the field of data security and software monetization. Together, we are building the next wave of data, transaction and identity protection solutions for enterprises, governments and financial institutions. Learn more at gemal.to/edge2core.

I hope you find plenty in this issue to inform and inspire.

Teck Lee TanExecutive Vice-President,

Platforms & Services, Gemalto

gemalto.com @gemalto linkedin.com/company/gemaltoC

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The Review is published by Gemalto Corporate Communications – www.gemalto.com

© 2015 Gemalto – www.gemalto.com. All rights reserved. Gemalto, the Gemalto logo and product and/or service names are trademarks and service marks of Gemalto NV and are registered in certain countries. The views expressed by contributors and correspondents are their own. Reproduction in whole or in part without written permission is strictly prohibited. Editorial opinions expressed in this magazine are not necessarily those of Gemalto or the publisher. Neither the publisher nor Gemalto accepts responsibility for advertising content.

For further information on The Review, please email laurence.manouelides@gemalto.com

The Review is printed on Cocoon Silk 50 paper. Certified as an FSC mixed sources product, Cocoon Silk 50 is produced with 50% recycled fiber from both pre- and post-consumer sources, together with 50% FSC certified virgin fiber from well-managed forests.

Mobile is everywhere

Contributors

Simon Creasey

Jess Unwin

Simon is a freelance journalist who has written for media outlets including the Guardian’s technology section, TechTarget and ComputerWeekly.com.

A journalist for 25 years, Jess has written about the impact of big data on the insurance industry and how nanotechnology is being used in construction.

David Howell

Sofia Mitra-Thakur

Ray Philpott

David has reported on technology and computing for more than 15 years. He also works as a consultant to small businesses looking to move online.

Sofia is a journalist based in Bangkok, covering technology news and features for the South China Morning Post and the Telegraph, among others.

Ray is a freelance journalist and editor who has written for international publications in the engineering, IT and telecommunications sectors.

The Review is produced for Gemalto by Wardour, Drury House, 34–43 Russell Street, London WC2B 5HA, United Kingdom +44 (0)20 7010 0999 wardour.co.uk

COMMUNICATIONS MANAGER, GEMALTO Laurence ManouelidesEDITOR Molly BennettART DIRECTOR Steven GibbonDESIGNERS Dean Buckley, Tara SwartPICTURE RESEARCH Johanna WardPRODUCTION Jack MorganPRODUCTION DIRECTOR John FaulknerACCOUNT DIRECTOR Ella KilgarriffCONTENT DIRECTOR Tim TurnerCREATIVE DIRECTOR Ben BarrettMANAGING DIRECTOR Claire OldfieldCEO Martin MacConnol

WELCOME

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4 DIGITAL DIGESTTech stories from around the world

8 INNOVATIONRemote controlSmart devices demand instant connectivity

10 THE BIG QUESTIONWill Apple Pay be a game-changer for contactless payments?Forrester and Gemalto go head to head

12 FIRST PERSON What’s in IoT for us?Robin Duke-Woolley says connected technology must have users at its heart

16 INNOVATION No tickets, pleaseThe world’s oldest underground metro system has gone fully contactless

18 INSPIRATION Meet Generation mBankingYoung people love their mobiles – so banks and other payment providers should ensure their mobile offerings are up to scratch

22 DIGITAL PLANETIngenious inventionsGemalto’s IoTMaker Challenge drew creative and practical ideas from all corners of the globe. Meet the winners

24 VOICE OF THE CUSTOMER“Security always evolves”Li Ming, CEO of industrial M2M technology developer InHand Networks

26 SOCIETYPower at Europe’s fingertipsA pan-European system of electronic identification is on its way

In this issue…12

30 INFOGRAPHIC SMS is alive and wellA2P is keeping the SMS fires burning, but for how long? We crunch the numbers

32 SOCIETY Bright lights, big data As more of the world moves to urban areas, our cities need to get smarter. Here’s how

36 INNOVATION Marketing has been mobilized Mobile marketing, once a B2C specialism, is now being adopted by B2B companies

38 EARLY ADOPTERS Hands off! Driverless cars: no longer just a futuristic vision. But how close are you to owning one?

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What do you think?

Like what we’re doing? Want to see stories on a particular topic? We’d love to know what you think about The Review. To help us make this award-winning magazine even better, visit review.gemalto.com/survey and follow the instructions.

DIGITAL DIGEST

We are really only in the early days of understanding what being connected means”ROBIN DUKE-WOOLLEY, BEECHAM RESEARCH

Read more on page 12

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A vision of eID’s futureMost travelers will have electronic passports by 2020. That’s according to Vision 2020, a report on future security trends from Eurosmart, the association that represents the smart security industry.

The report also states that Europeans will hold more than 250 million eID cards by 2020, and that electronic driver’s licenses will be standard in 10 EU member states.

“In all regions of the world, secure and convenient access to electronic government services will be possible via eID documents,” the report’s authors wrote.

But this vision of the future will only become a reality if citizens’ data is secure. Eurosmart recommends secure elements, which embed “a secure microcontroller that is both a ‘safety deposit box’ of data and processes and the support base of embedded software that is protected against viruses, malware and Trojan horses.”

Equally important are strong authentication systems to prove digital identity and protect privacy. The report says this is because “being constantly identified on the web poses the risk of divulging too much information: instantaneous identification of locations and activities, work activity and performance, habits, interests and lifestyle, etc.”

This level of digital connectivity holds huge potential. Eurosmart believes that alongside secure elements, biometric authentication has a huge role to play in safeguarding the liberty, security and privacy rights of citizens.

2D photos are so 2014Ever visited a museum and wished you could take an object home? Well, now you can – kind of. RealSense is Intel’s 3D brainchild for 2015. The camera scans an object using three lenses (conventional, infrared and infrared laser projector) and, in a similar way to how the human eye gauges depth, builds up an image of the object based on how the light reflects off it.

You can even manipulate the image on screen with hand gestures and then print it using a 3D printer. Intel CEO Brian Krzanich said: “The idea is you go out, you see something you like and you just capture it.”

Motion technology allows users to operate RealSense without even touching it. Imagine being able to draw in mid-air with your finger, with the camera capturing the movements and displaying the image you are drawing. The camera even responds to head movements and facial expressions.

Find out more at tinyurl.com/review-realsense

Read the report at tinyurl.com/review-eurosmart

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Read the latest news and statistics at Gemalto’s mobile hub: gemalto.com/mobile

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Source: Cisco IBSG Horizons report. tinyurl.com/review-cisco

THE RISE OF BRING-YOUR-OWN-DEVICE

69%

63%

of IT leaders feel BYOD increases productivity and employee satisfaction, and lowers costs

of IT leaders expect the percentage of employee-owned devices to increase in the next two years

42% of smartphones and 38% of laptops used in the workplace are now employee-owned

SNAPSHOT

Worldwide,

89% of IT

departments enable BYOD in

some form

The number of devices used for work rose from 2.3 per person in 2012

to 2.8 in 2014

42% 38%

China, Russia and Germany have the lowest adoption level of mobile devices used for work.

China, however, is expected to adopt BYOD fastest – growing from 1.8 to 2.7 devices per person

in the next two years

Connecting the dots on secure paymentsCustomers of nine banks representing 80% of the Belgian market can now use Sixdots, a mobile wallet service that uses a combination of QR codes and a six-digit PIN to enable payments in store, online and between friends.

Users first have to download an app, choose their bank and elect to store their bank card details, which will be protected by the six-digit PIN. Users scan the QR code into the system in store or online, then enter their PIN to confirm the transaction. There is no card reader, no card and no long series of numbers to input or remember. When making in-app payments, the seller’s app will automatically detect Sixdots on the buyer’s smartphone for direct payment.

There is an added level of security, because no data is stored on the phone. And customer card details are no longer stored in the seller’s database when making online or in-app payments.

The service is available for iOS and Android. The system may also be used in the future as secure proof of identity, and users could potentially link their Sixdots account to their digital banking applications.

Read more about mobile wallets at tinyurl.com/review-mobilewallet

SIXD

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DIGITAL DIGEST

The really successful B2B companies have always done personal [marketing]”ANNE GODFREY, CHARTERED INSTITUTE OF MARKETING

Read more on page 36

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GE

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How to make a memoryDevelopers at Google’s DeepMind start-up, which it bought for US$400 million in January 2014, are attempting to mimic some of the properties of the human brain’s short-term working memory.

In partnership with Oxford University’s Artificial Intelligence research team in the UK, DeepMind has gathered eminent researchers from around the world, including experts in cognitive language and meaning. DeepMind’s system stores decision-making sequences, or “memories”, of scenarios so it can apply the same logic to similar situations in the future. As part of this artificial intelligence, researchers hope the machine will be able to program itself.

Find out more at robinpowered.com

TECHNOLOGY TRENDS FOR 2015according to PR and communications agency Bell Pottinger

TOP 10…

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NFC paymentsApple Pay has made these a hot topic. By 2017, half of today’s smartphone users will be using mobile wallets as a payment method

IoT 4.9 billion connected things will soon be in use. Businesses will spend US$40 billion ensuring products are connected

Wearables 79 million will be sold this year

Internal communicationsHalf of devices on corporate networks will be mobile

Beacons60% of retail marketers plan to use these this year

PersonalizationIt leads to a 19% rise in sales. 56% of consumers would use a retailer that offered a personal service

Big dataGlobal spending will grow by 46%. But 85% of Fortune 500 organizations currently fail to exploit big data for competitive advantage

Augmented realityIn two years, more than 2.5 billion mobile AR apps will be downloaded

3D printing20% of retailers will use 3D printing to create personalized products. The market will grow to US$16.2 billion in three years

MobileUK mobile internet use increased 69% and accounted for 23.2% of all usage in the UK

Explore The Review’s online partner, /review, at review.gemalto.com

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Read more here: contactless.barcelona.cat/en

Barcelona: contactless cityBarcelona is a city of art, architecture, food… and now NFC updates. To ensure visitors and residents don’t miss a thing, the Barcelona Contactless platform has been extended. Connecthings, a contactless and proximity services company, has spread the service to 8,000 locations in the city. Visitors and citizens can access services and information about the area around them through NFC or scanning a QR code.

Contactless stickers at locations such as bus stops, subway stations and parking meters can, when scanned by a QR-reading app or NFC-enabled device, give service details and current travel information. Stickers at public buildings and on urban street furniture can also give directions, as well as information on points of interest, history, events and municipal services.

The aim is to help visitors make the most of their trip and ensure Barcelona’s residents benefit from a better quality of life and economic growth through more efficient management of the city’s services and resources.

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Event calendarGemalto regularly participates in trade shows, seminars and events around the world. Here’s a list of those taking place in the next few months.

Date Event Sector Location

Mar 2-5 Mobile World Congress Telecom Barcelona, Spain

Mar 4 Mobile Payment Financial Services

Moscow, Russia

Mar 10-11 Retail Business Technology Expo

Retail London, UK

Mar 25-26 Cards & Payment Financial Services & eBanking

Helsinki, Finland

Mar 26 Banking Technologies and Innovations 2015

Financial Services

Almaty, Kazakhstan

Apr 1-2 ROOMn 2015 General Deauville, France

Apr 14-16 INTERPOL World Govt. Programs

Singapore

Apr 21-22 2015 Connect Show General Melbourne, Australia

Apr 27-29 Cartes Afrique Financial Services

Marrakech, Morocco

Apr 28-29 M2M Forum M2M Milan, Italy

May 12-13 Cards & Payments Middle East

Financial Services

Dubai, UAE

May 19-20 Myanmar Mobile Services

Telecom Yangon, Myanmar

May 27-29 SmartGrids Paris Smart Grids

Paris, France

Jul 15-17 Mobile World Congress Shanghai

Telecom Shanghai, China

Sep 9-11 CTIA Super Mobile Show Mobile Las Vegas, USA

INNOVATIONTHE INTERNET OF THINGS

AUTHOR SIMON CREASEY

ILLUSTRATIONS GRÉGOIRE GICQUEL

Connected devices help people to be more mobile than ever – and these customers expect to be connected 24 hours a day, wherever they are. What are industry players doing to keep up with this demand?

REMOTE CONTROL

It’s a scenario that’s all too familiar. You’ve stopped at the supermarket on the way home from work to pick up some groceries, but when you start wandering down the aisles, you can’t recall what you’ve already got in the fridge that’s still OK to eat, nor can you think of something to cook. As a result, you end up selecting a bunch of random items in the hope that inspiration will strike on the journey home.

Then, on the walk back to your car, you notice the outside temperature has dropped significantly and remember that you failed to put the central heating on timer. To top things off, you think you forgot to set the alarm when you left the house this morning.

Thanks to the wonders of technology, these minor irritations could soon become a thing of the past. Smart fridges already exist that connect directly to your smartphone, tell you what you have in the fridge and when it goes out of date, and even suggest recipe ideas.

In store, beacons – electronic tags that can emit information to smartphones – are appearing that can suggest, for example, the perfect wine to accompany the meal for a specific recipe.

As for the central heating, you can remotely tell the smart thermostat in your home to switch it on, and activate your home security system in a similar fashion.

This is all being made possible thanks to flexible cellular technology and the Internet of Things (IoT), which is powered by machine-to-machine (M2M) technology. This network of objects contains embedded technology that allows it to communicate and sense or interact with its environment. The IoT

is in its early stages, but experts predict an explosion in this area in the next decade. Gartner estimates that the IoT will grow to 26 million installed units by 2020, representing an almost 30-fold increase from the 0.9 billion in 2009.

The falling cost of technology is one of the key drivers of this growth. “By 2020, component costs will have come down to the point that connectivity will become a standard feature even for processors costing less than US$1,” says Peter Middleton, Research Director at Gartner. “This opens up the possibility of connecting just about anything, from the very simple to the very complex, to offer remote control monitoring and sensing.

“The fact is that, today, many categories of connected things in 2020 don’t yet exist,” he adds. “As product designers dream up ways to exploit the inherent connectivity that will be offered in intelligent products, we expect the variety of devices offered to explode.”

PRÊT-A-PORTEROne area to watch is wearable technology. Juniper Research estimates that in 2013, about 15 million smart wearable devices, such as smart glasses and health and fitness monitoring devices, were sold, and that this figure will reach almost 70 million by 2017.

Takeup of these devices will largely be fueled by the fact that users of wearable devices like smart watches perceive them to be less interruptive to social interaction than smartphones. This was shown in recent research by Professor Andre Spicer of Cass Business School. “[Smart watches] are closer to their

STRONG SIGNALSThe number of installed IoT units is booming

20090.9 billion

202026 billion

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Connectivity is important, but not all IoT devices have the same connectivity requirements, and those needs can be very diverse”

Learn more about on-demand connectivity at gemalto.com/mobile/networks/on-demand-connectivity

bodies and in immediate sight,” he says. “This means users don’t need to reach into their pocket and type in their passcode and open their email program. They just need to glance at their watch.

“People are really driven by the desire to manage face-to-face social interactions, and smart watches can help them do this.”

CONNECTIVITY OPPORTUNITIESWearable tech may indeed help to break down some psychological barriers to the adoption of IoT devices, but there are lingering issues to do with connectivity. Many of these devices were designed to be used away from home, which means that the user has to rely on either cellular connectivity or free but sluggish Wi-Fi, perhaps in a café or bar, where they’re sharing an often-unsecured network with many other users.

Cellular connectivity, at least, has come on leaps and bounds in the past few years due to the rollout of newer, faster networks that boast better coverage.

“4G is helping, and 5G will too,” says Jonathan Mitchener, Lead Technologist, ICT, at Innovate UK. “This is not simply because the faster networks are becoming available, but also because, in doing so, they release capacity on the previous generation of mobile connectivity.

“Many IoT applications need some connectivity, perhaps reliable or regular connectivity, but do not necessarily need the fast video-conveying, game-playing, streaming speeds of 4G or 5G connectivity. So connectivity is important, but not all IoT devices have the same connectivity requirements, and those needs can be very diverse.”

What’s also important is that consumers feel their personal information is secure while using devices that fall under the IoT umbrella. But according to Professor Spicer, achieving complete privacy is almost impossible, particularly for wearable technology.

“You could probably go through the phone and change the privacy settings, but doing this requires lots of knowledge, and preserving privacy can become a full-time job,” he says. “The Faustian bargain of a smart watch is that you get lots of new functions, but you give away your privacy.”

The good news is users should be able to evade falling foul of hackers, as many of these devices use SIM-based authentication through cellular connectivity. Also, manufacturers and network providers are making great strides in ensuring that the IoT is as secure as possible, with much of the groundwork already in place. If this hurdle can be overcome, the IoT looks set for a bright future.

“Connected devices will clearly play an important part in the future, and the impact could be high, provided that those launching services that include such devices make it as easy as possible for people to understand what they are and get value from them in their everyday lives,” says Mitchener.

“IoT is a hyped term and means different things to different people. The successful exploiters will ensure that the devices, software and service wrap work well together and deliver something of value that is new for people.”

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THE BIG QUESTIONCONTACTLESS PAYMENT

After years of rumors about an NFC-equipped iPhone, it’s finally here – and with it, the Apple Pay system. What are people saying about it?

THE BIG QUESTION

GE

TTY

Will Apple Pay be a game-changer for contactless payments?

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Find more opinion on Apple Pay at blog.gemalto.com

From “Brief: Apple Pay Signals a Fundamental Shift in Secure Payments Technologies,” September 22, 2014, Forrester Research, Inc.S&R [security and risk] pros should be excited about [Apple Pay] because: • A secure element allows for the secure storage of tokenized

card numbers. A secure element (trusted platform module) to store card numbers is nothing new: the Microsoft Surface and other consumer electronics, including the Samsung Galaxy S4, have a secure element. What’s new here is that upon registration of a payment account, Apple Pay creates a “Device Account Number,” which is essentially a tokenized form of the device identifier and the payment account. Apple then stores this token in the secure element in an encrypted fashion and relays only this number when its owner uses the phone or watch to make a secure payment. No actual account information is transmitted to the terminal.

• Apple Pay will motivate merchants to accept contactless payments more quickly. If the EMV chip liability shift for counterfeit cards in October 2015 and the Home Depot breach don’t drive the replacement of old magstripe-only (or magnetic stripe) payment terminals, Apple Pay surely will. Merchants – especially the largest ones – will move to upgrade their POS systems in order to accept cards with magstripe plus EMV chip plus contactless (NFC) readers much faster, which will greatly catalyze consumer adoption of Apple Pay. A growing number of solutions using host card emulation (HCE), the ability to support cloud-based NFC-based payments without a secure element, currently available primarily on Android KitKat, will further accelerate mobile contactless payment adoption. While EMV adoption will happen in the US, Forrester expects Apple Pay to accelerate the adoption of contactless payments in the US.

“Security and risk professionals should be excited about Apple Pay”

“I’m pleased with customers’ reaction to NFC and Apple’s adoption of the secure element”

Jean-Claude Deturche, Senior Vice-President, Mobile Financial Services, GemaltoNFC technology is quite mature now. But the opportunity to use NFC to take mobile payments into the mainstream had eluded the industry until recently. I believe the iPhone 6 will help NFC become the payment method of choice for an increasing number of consumers. It will also inspire a wave of NFC POS installations by retailers to capitalize on the buying power of Apple users.

I’m particularly pleased with Apple’s adoption of the secure element to store users’ payment credentials. This is part of a wider acknowledgement within the industry that dedicated, hardware-supported security protection for consumers is vital in supporting mass-market uptake.

Strong authentication is an absolute must – basically, ensuring the device is tied to its owner and impenetrable to anyone else. The best way to achieve this is to spread the risk between different components within a security framework.

In the case of Apple Pay, if the user enrolls using their existing iTunes account, his or her actual card numbers are stored in the cloud, whereas the payment identifiers generated by the token service provider are stored and processed in the secure element and accessed via fingerprint recognition. This is a good illustration of combining security frameworks in the cloud and on the device.

Users are one thing, but to convince retailers to adopt NFC, providers need to bring greater benefits than just payment convenience. We also need to address the long-term perceived risk of disintermediation – basically, doing away with the middleman, in this case the banks.

Until then, banks should institute open and fully interoperable standards for managing NFC payments. With the iPhone 6 likely accelerating uptake, limiting market fragmentation through intelligent standardization should be a priority.

Apple Pay is part of a bigger picture – there are already hundreds of millions of Android handsets with NFC. Whatever the hardware, providers will want to offer compelling, easy-to-adopt services backed up by secure element protection.

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FIRST PERSONROBIN DUKE-WOOLLEY

Talk of connected homes and smart cities is all well and good, but M2M technology will never become part of our everyday lives unless we feel the benefits, says Robin Duke-Woolley of Beecham Research

AUTHOR MOLLY BENNETT

PHOTOGRAPHY LYDIA EVANS

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The day before we talked, Robin Duke-Woolley was in Milan interviewing the CEO of Cobra Automotive Technologies, the company Vodafone acquired last year.

It’s a mark of how far connected technology has come that the mobile network giant sees Cobra as a viable stablemate to its core business. And not many people are more familiar with this technology’s potential than Duke-Woolley, founder and CEO of Beecham Research, which provides analysis and consultancy to its clients in the machine-to-machine (M2M) technology sector.

His jaunt to Milan was less than glamorous – delays meant his already late flight back to London didn’t land until midnight – but it’s part and parcel of what he and his colleagues do.

“We’re constantly looking at what’s coming up in the marketplace, what’s going to be hot and what’s not so good, and providing advice to clients about how we think they can succeed in this marketplace,” says Duke-Woolley. “It’s a very exciting area.”

He’s been involved in M2M since 2001 – a lifetime in technology terms. “It was a bit like a cottage industry when we got into it, and now it’s developed into much more of a big business,” he says, tracing the evolution of M2M from fleet tracking and vending machines to today’s emerging consumer and lifestyle applications.

When it comes to the latter, there’s been plenty of talk of smart kitchens and other futuristic inventions,

WHAT’S IN IoT FOR US?

Consumers tend not to adopt things where they don’t have choice”

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He believes there are several hurdles the industry must get over before we’ll see mass adoption of connected-home technology

FIRST PERSONROBIN DUKE-WOOLLEY

WHAT HE SAYS ABOUT…

Keep an eye on review.gemalto.com for our upcoming exclusive video interview with Robin Duke-Woolley

but Duke-Woolley advocates an easy-does-it approach. Services such as Nest and AT&T’s Digital Life started out with simple functions – respectively, temperature control and home security – and are gradually adding others, such as home automation. He says this is a good way of providing “an evolutionary service” that allows users to understand and engage with connected technology, making it easier for providers to then introduce new features.

He believes there are several hurdles the industry must get over before we’ll see mass adoption of connected-home technology – which will only come when consumers, rather than just businesses, embrace these products and services. To get to that point, the industry needs to create standards that work across brands and devices.

“Consumers tend not to adopt things where they don’t have choice – where they are forced to go down one particular line,” he says. “Standards will help to open up the consumer market opportunity. It is up to the industry to come together and try to push that forward.”

The other hurdles, which have been hot topics for some time, are data security and privacy. “People are only just becoming aware of what the dangers might be if their systems are not secure, and it is up to the industry to find solutions for that,” Duke-Woolley says.

“What it all boils down to is trust in the supplier. [Consumers] are going to be relying on somebody to have pulled all this together and provided the compatibility between devices, so you can follow a set of instructions and install it and it works.”

A NEW REALITYIn a somewhat surprising but eminently practical statement, he adds that we “just need to get used to the idea” of cybercrime. “This is a much more noisy environment than it used to be,” he says. “Why would anyone want to hack into an M2M application? Well, if it’s something like a vending machine, they probably wouldn’t, but if it’s infrastructure that is important to the operation of a country, such as a smart grid, then it becomes potentially interesting for hackers and catastrophic for users.

“Because connecting things is a relatively new thing, then cybercrime and hacking and ‘hacktivism’ is just a new dimension that goes along with that. We just need to accept it as being part of the environment and then deal with it.”

Data privacy is even more of a moveable feast, for a few reasons. There’s a generation gap, where older people tend to be more wary of sharing personal details on the internet, while younger people think nothing of posting their latest selfie on Instagram for all to see. But the central issue for everyone

…the best part of his job:“There’s a lot of innovative thinking going on in our industry, and it’s fascinating to get to grips with that and discuss what we think it means in terms of the future and how it’s going to take off.”

…and the most challenging: “Trying to analyze new ideas and move them toward something that is likely to make money for our clients is quite challenging, but that’s what we do and it’s also the most interesting part.”

…his role models: “There are many, but Tim Berners-Lee, for his creation of the web, and Steve Jobs, who created a way of thinking about technology in lifestyle terms and made people realize that it’s not just about products but about the services behind them.”

…the most exciting new technology: “Wearable tech has so many possibilities right across the spectrum. I think it’s fascinating as to how we can … develop those areas and how it will develop in five years’ time.”

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is, increasingly, what’s in it for me? “What value can you gain from giving your private data away?” Duke-Woolley asks rhetorically. “People are only now beginning to think about what information could be shared and the value of that.

“For both data security and data privacy, trust is the main issue – trusting the supplier that they’re going to do the right thing and being able to control [this data] in the right way. That provides many opportunities for some of the market players out there at the moment.”

DUMB VS SMART SENSORSMuch of this opportunity lies in the vast amounts of data being generated by increasingly intelligent sensors. When Duke-Woolley first got into this field, sensors were fairly expensive and fairly “dumb”, as he calls it. Now, they’re much cheaper and have onboard intelligence, meaning we can weed out the background noise and focus on the valuable nuggets of data and how they could be combined to create something really useful.

This “big data” approach, he says, is what will power tomorrow’s smart cities, for example. “If you can put together smart parking with traffic control, you can find ways of considerably reducing pollution in town centers,” he says. “It’s looking at lifestyles that we want to lead and using technology for our benefit, rather than the other way around.”

Over the next few years, Duke-Woolley sees the further development of smart cities, smart homes, connected homes, wearables – but what’s it all for? “I think it’s a natural progression towards the individual … becoming the center of things,” he says.

“We are really only in the early days of understanding what being connected means in terms of opportunities and benefits and value, and the next 10 years are going to be fascinating in trying to get to grips with that,” he adds. “Why would you want to connect virtually every object that you come into contact with?

“It’s not obvious at the moment, but it will be in 10 years’ time, and we’ll look back on this and say, ‘Well, of course, everything needed to be connected.’”

For both data security and data privacy, trust is the main issue”

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INNOVATIONCONTACTLESS TICKETING AUTHOR TAMSIN OXFORD

Last year, Transport for London launched EMV contactless payment on the London Underground, the world’s oldest metro system

NO TICKETS, PLEASE

The crush and roar of rush hour on the metro of a big city: thousands of bodies pressing into passages and hurrying through turnstiles, busy workers running late as they wait in snaking lines by payment kiosks to top up cards and purchase tickets. For Londoners, all this is changing. Contactless payment has arrived.

In September 2014, Transport for London (TfL) introduced contactless payments on all forms of public transportation. That includes not just the Underground (better known as the Tube), but also buses, trams, the Docklands Light Railway, the London Overground and most National Rail services in the capital. Travelers can now use near-field communication (NFC) EMV-enabled bank cards, fobs and mobile phones to pay for their journeys. More than a million contactless payments were made in the first week alone.

Every day, people make 12 million journeys on London’s public transportation system. In an already very busy environment, having to spend time buying tickets adds an unnecessary layer of difficulty.

That’s why Oyster (a contactless smartcard) was introduced in 2003, but 11 years on, there was a need for change. The old system requires customers to monitor their cards’ funds and is complex to maintain behind the scenes. With contactless, customers simply start touching in and out with their cards. All cards issued by Visa, MasterCard, Maestro or American Express with the contactless payment symbol should work with the TfL system.

One of the key benefits of the system is its simplicity. Visitors don’t need to understand the ticketing system, get an Oyster card or top it up – they just need a contactless bank card. And while there are some restrictions on international cards, visitors from 57 countries have so far made use of the system.

Travelers can also pay with wristbands such as Barclays’ bPay, which uses the Optelio Contactless

It is as seamless as using an Oyster card but without the need to top up a card with funds – brilliant!” LOUISE MURRAY, LONDON COMMUTER

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MiniTag. On the smartphone front, mobile network EE has released the Cash on Tap mobile payment system, which works with NFC-equipped smartphones, as does Vodafone Wallet’s SmartPass.

TfL opted for a phased introduction to make it easier for customers to adjust to the change. The initial phase introduced contactless on London buses in December 2012, followed by a pilot on the Tube and the capital’s rail network in April 2014.

“London has one of the busiest and most complex urban travel networks in the world, so any improvements had to be meticulously planned to ensure there was no possibility of disruption to customers’ journeys,” a TfL spokesperson says. “It required the transport and payments industries to work together to create a new transaction model. Some of the rules around how contactless payment cards work in the retail environment, such as requiring a PIN, needed to be tweaked to ensure a viable payment method on the transport network.”

The resulting transactional model aligned the business processes of the finance and transportation sectors. Later, telecommunications was brought in. The model can also be implemented across any network in any country, and transit authorities globally have been watching London with interest – including how TfL educated travelers.

MIND THE GAPPosters, announcements and digital marketing were all deployed to help explain the system, including the new term “card clash,” a simple way of describing a rare situation where the wrong card is charged because the customer holds two or more cards together at the sensor.

Security was another important message, and TfL’s system is significantly safer than cash. Contactless payment cards are embedded with multiple layers of security to protect against fraud, boasting the same level of protection as chip and PIN payments.

Financial institutions have welcomed the change and have seen significant growth in contactless usage. HSBC says: “We are seeing contactless transactions increase each month, both in number and in average value. Over 75% of eligible

HSBC and First Direct customers already have a contactless debit card.”

Richard Koch, Head of Policy at the UK Cards Association, says: “The rollout of contactless technology across the London transport network is a change that’s clearly been warmly embraced by Londoners, with 1.8 million using their contactless cards for their daily travel and nearly one in 10 of all pay-as-you-go journeys paid for this way. Commuters no longer have to queue up to buy tickets, and we’re already working with other transit operators across the UK who are planning to follow suit.”

TfL says travelers have made more than 30 million journeys on bus and rail services in London using contactless since September 2014. And with contactless payments now used for 12% of pay-as-you-go journeys, commuters are clearly embracing this next step in the evolution of ticketing.

Learn more about Gemalto’s transit solutions at gemalto.com/transport

Source: UK Cards Association

50% The increase

in the number of contactless

cards issued

275.5% The increase in the money

spent using contactless

cardsCONTACTLESS

IN THE UK

November 2013 v November 2014

217.1% The increase in the number of

contactless transactions

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INSPIRATIONMOBILE BANKING

Mobile banking is rapidly gaining in popularity among young people. But to keep their loyalty, banks need to be sure they can offer both excellent security and a great customer experience

Imagine this. You have some urgent personal banking to do, so you pick up your smartphone and within seconds are securely connected to your bank and your account.

You quickly check your balance, pay a bill, apply for a loan – all from your mobile device. You also have a complex question about your mortgage repayment, which you decide to ask in person. Job done, without overcomplicated passwords, texting or tricky security questions that you seem to always forget.

It doesn’t quite happen like that everywhere yet, but it’s where mobile banking is heading: a reassuringly secure, smooth, user-friendly interaction with our banks. What’s more, the technology to create this sort of service already exists and is being rapidly developed.

As the popularity of smartphones and tablets accelerates, there’s been a revolution in the way we do our banking. Juniper Research estimates that, globally, the number of mobile banking users will jump from 590 million in 2013 to 1 billion by the end of 2017.

Mobile banking is particularly popular with millennials – those who have grown up with the internet, smartphones and social media. They want simpler, easier interactions with their banks.

And the banks are listening. Barclays Bank reported a 200% increase in its UK banking app registrations in 2013, and Deloitte predicts that Latin America’s 18 million mobile banking users will grow to 140 million this year. According to MobiPay, mobile banking customers at China’s three largest banks comprised an average of 29.7% of those banks’ overall customers in 2013 – a number that is growing by between 25% and 50% each year, depending on which bank you ask.

Research carried out by Gemalto in Brazil, Mexico, the USA, the UK and Singapore shows that mobile banking is particularly popular among 16- to 24-year-olds. It reveals that more than three in five use mobile banking apps, while more than 25% never go into

MEET GENERATION mBANKING

AUTHOR RAY PHILPOTT

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Visiting a branch is time-consuming and inconvenient. I would never do that unless an action I needed to carry out couldn’t be done online or mobile.”ROB WHEATLEY, 17, STUDENT

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the same security consciousness beyond their online finances, as almost half are happy to use unprotected public Wi-Fi networks for banking.

In response, banks continue to enhance their security. They have recognized the importance of two-factor authentication and are considered to be pioneers in the field of identity and authentication.

A BALANCED APPROACHWhile improved security and authentication technology offers peace of mind to customers, there is a fine line to walk between the ability to transact securely using a mobile phone and the demand for easy usability.

“Resolving this is the key issue for banks today,” says Michael Soppitt, Director of Digital Risk Solutions at Parker Fitzgerald, a specialist security consultancy in the financial sector. “The digital revolution has exploded in the mobile banking arena. It’s a complete paradigm shift from traditional banking, and as a result, people’s attitudes to data privacy and data security are entirely different.

“Consumers are demanding more functionality from their mobile channels to match their other online experiences,” he adds. “While young customers may be aware of mobile banking security risks, they get frustrated with a poor mobile interface and are less tolerant of usability challenges. They will simply move if they don’t get a good experience.”

This is borne out in the Gemalto survey: 68% would use their bank’s mobile app less if it were hard to use, and 37% would change banks altogether.

Soppitt believes customer experience is going to be one of the biggest drivers for customer loyalty. That, plus strong functionality and easy usability, will make all the difference between a successful digital bank and an unsuccessful one.

“Overcoming the risks and security challenges this throws up demands care,” he says. “In my opinion,

a branch. These young people are using banking apps for a wide range of tasks, but primarily money transfers and paying domestic bills.

Millennials have grown up using apps and expect them to be easy to use, enhance their digital life and, more superficially, have a nice design and user interface. These expectations don’t stop at entertainment and messaging services. They have the same high level of expectations for all apps – including the ones from their banks.

But this age group also takes security seriously. About two-thirds have concerns about using handheld devices for banking, and nearly half would switch banks if they felt their bank’s security was inadequate. Surprisingly, though, they don’t apply

Young people use banking apps primarily for money transfers and paying bills

XXXX

INSPIRATIONMOBILE BANKING

If I felt transacting was insecure, I would potentially consider other financial institutions, but I’m comfortable using public Wi-Fi networks. I’m more worried about people looking over my shoulder.”

DAMIEN FEARNSBY, 22, FINANCIAL ANALYST

20

Japan became the biggest app market in the world at the end of 2013

trying to ‘educate’ younger people about mobile data security probably won’t work. Effectively, banks have to protect consumers from themselves in a way that’s seamless and frictionless.” Organizations need to do more to make security work quietly, yet efficiently, in the background so customers can think about it less.

SECURITY EVOLUTIONSoppitt predicts advancing technology will soon deliver multi-factor authentication for consumer transactions. Now, customers must input four or five pieces of information to gain access to their accounts. But soon, in an almost seamless interface, banks will grant access based on thousands of discrete pieces of information – a process known as risk management – about the customer, all from their mobile device.

“In future, banks will look at things like where you are, how you hold your mobile and the data on the device’s accelerator,” says Soppitt. “If you’re at home, are you usually at online at this time? Do you normally behave this way? They’ll analyze myriad data points so they can confidently allow a person access to their account.” This way, banks can focus on detecting and preventing risks before they occur.

While most commentators expect branch visits to decline dramatically over the coming years – and

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I use my tablet and mobile for banking at home, although I’m not convinced public Wi-Fi networks are completely safe. My bank tells me transacting online is very secure, and I’m reassured that if anything went wrong, I’m covered. But if it did go wrong, I’d switch banks immediately.”

possibly even disappear altogether – mobile banking may, ironically, be the way to offer customers a more personal experience if they want it.

“There are companies that are selling face-to-face screen-sharing technology, enabling an interactive experience without going to a branch,” explains Soppitt. “Many banks have already purchased this technology – it’s just a question of when they want to roll it out.”

Other banks have gone down the online-only route; examples include Dutch bank Knab, Simple in the US, Number26 in Germany and Smile in the UK.

In December 2014, Barclays launched a 24/7, app-based video banking service for its Premier customers. It will gradually be rolled out to all retail customers between now and the end of the year.

It’s the first such system in Europe and one of the first in the world – and a taste of things to come.

I bank on my mobile when I’m commuting on the train, but I find some things actually aren’t that easy to do using a banking app. So they really need to keep improving them.”

POLLY ADAMSON, 23, COMMUNICATIONS

EXECUTIVE

OZZIE DEMIEL, 24, SMALL BUSINESS OWNER

Watch our “Meet Generation mBanking” video at review.gemalto.com

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22

INGENIOUS INVENTIONS

AUTHOR MOLLY BENNETT

In September, Gemalto launched the IoTMaker Challenge, asking people for brilliant ideas using connected technology. The criteria were that they should be viable, creative, original and have real-world value. We received entries from all over the world, ranging from an IoT-connected swear jar to an automated greenhouse system that tends your indoor plants. Here are our judging panel’s top five choices, plus a notable runner-up

DIGITAL PLANET

Applications that facilitate the lives of sick and disabled people support both the person and the healthcare system.” ERIC SCHNEIDER, M2M ALLIANCE

Intelligent wheelchairInácio Francisco Acker, Brazil

Walking stick radar systemAlejandra Gomez, Colombia

Many visually impaired people use walking sticks that allow them to detect and avoid obstacles when out and about. Alejandra’s idea would supercharge that concept by using the person’s iPhone as a radar system. Not only would the phone provide the location of the user in case of an emergency, it would also use electromagnetic signals to detect hanging obstacles that a walking stick would miss.

IT analyst Inácio’s idea is a wheelchair equipped with sensors that allow the remote monitoring of the health of the chair’s user and the ambient environmental conditions.

3RD PLACE

4th PLACE

Monitoring [of] the patient’s location and wellbeing [would be] valuable, especially for patients suffering from certain conditions.”MANFRED KUBE, GEMALTO M2M

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2ND PLACE

3G bushfire alert systemJason Mitcheson, Australia

Traffic accident detectorThang Nguyen, Vietnam

Smart doorSadek Alaoui, France

Connected fire extinguisherGuillaume Chabas, France

Software consultant Sadek proposed a smart door that detects when someone knocks on it and sends a notification, including photos and voice messages, to the residents. Obvious applications include ensuring your caller means you no harm and avoiding aggressive sales pitches by cold-callers, but we think it could be just the thing when you’ve got your rollers in and don’t want to leave the sofa.

Services such as eCall and OnStar use connected technology to speed up response times to traffic accidents, but this entry goes that bit further. Thang’s idea would alert the emergency services and use M2M technology to monitor vehicle occupants’ vital statistics. He proposes that pulse-monitoring devices would send paramedics real-time information and enable them to treat their patients most effectively.

Bushfires are a huge problem in Australia: in the 2013/14 season, three people were killed and 335 buildings were destroyed, not to mention the devastation to the natural landscape. Currently, Australia’s Country Fire Authority uses a combination of satellite systems and human-staffed watchtowers to detect bushfires, but it is an expensive system that doesn’t work particularly well at night. Java developer and entrepreneur Jason Mitcheson had the idea to fit M2M modules with batteries, mini solar panels and digital temperature/humidity sensors and distribute them in vulnerable areas of Australia, where they would operate 24/7. “I got the idea while on holiday out in the country, where there are many fires every summer,” he says.

Safety is an area with huge potential for IoT applications, and this is a prime example. Guillaume envisages a fire extinguisher that can be customized for different types of blaze and can also auto-dial the emergency services when it’s clear professional help is needed. The extinguishers could also be fitted with NFC tags that keep track of fluid levels and usage rates. Hot stuff!

WINNER

HIGHLY COMMENDED

5th PLACEA prototype of the winning idea will be showcased at Mobile World Congress. To follow its progress, visit blog.gemalto.com and follow @Gemalto and #IoTMaker on Twitter

Great real-world value and creativity.”JOSE SANCHEZ SANTANA, GEMALTO M2M

Great idea – could incorporate a range of sensors ... and provide very rich data at relatively low operational cost.” TOM CHEESEWRIGHT, BOOK OF THE FUTURE

VOICE OF THE CUSTOMERINHAND NETWORKS

AUTHOR SOFIA MITRA-THAKUR

ILLUSTRATION LUKE WILSON

As part of the Internet of Things, M2M products can offer convenience and control, says Li Ming, CEO of InHand Networks. But it’s still early days when it comes to a complete security solution for this rapidly changing and diversifying market

“ SECURITY ALWAYS EVOLVES”

As Chief Executive of M2M company InHand Networks, Li Ming has a wealth of experience in traditional applications, yet he is always on the lookout for emerging solutions and services with the potential to transform the industry.

What are the big trends in the M2M market?There are two main trends. The first is that the M2M market is calling out for a more complete, integrated solution. My company is driven by this need to extend our product portfolio, and it will change how we interact with suppliers and customers.

The second is that the market is becoming more diversified and is expanding to more applications and machines. In the past 10 years, we’ve seen the market going from remote services to high-value machines, like MRI and other healthcare apparatus, to smaller, less-sophisticated machines as the costs of M2M solutions go down.

How will the Internet of Things affect our daily lives?The main values it can bring are more convenience and control – to be able to remotely control applications and devices at home, like air conditioning from the car or from the office. Right now, for example, we’re supporting vending machines and helping to make them smarter than ever. The customer will be able to use these machines in metro stations or office buildings, not just for buying a cold drink but for things like paying bills, buying a movie ticket and so on.

Which M2M services will see the biggest growth in the next 10 years?Data analysis is a fast-growing sector and will become one of the things IT companies will look

InHand Networks develops new industrial M2M technologies for clients from General Electric to the China State Grid

to provide to customers. It may become a big part of managing the process of M2M solutions. We may look like a hardware company making M2M routers, but we’re spending more resources on software. Our engineers are working on a data aggregation platform based in the cloud called the InHand Device Network. It will help customers acquire a large amount of data from a large number of devices, then allow them to manage and analyze the data. This is not just targeted at our big enterprise customers; small and medium-sized businesses will also benefit.

What is the role for security in a world of connected devices?I think security should become an integral part of the solution of the system. If I can make a comparison: everyone has anti-virus software on their laptop or their PC, and something similar will happen for connected devices. I think the security issue will evolve, and it will become mandatory for every device and every connection to have embedded security. Currently, security is limited to data, and its role is to prevent external intrusion or unauthorized access, such as through a VPN or data encryption. The next stage for security will be a more sophisticated solution. Security always evolves with the problem, and in the future it will need to be embedded in the operating system, into software, the controls and throughout the system.

What are your biggest business challenges and how do you overcome them?The emerging challenge now for me is how to manage the balance between two voices. The first, from everything I have learned, tells me I need to select one thing, focus on it and do it really well.

24

I think security should become an integral part of the solution of the system. Everyone has anti-virus software on their laptop or their PC and something similar will happen for connected devices”

However, the second voice, which comes from a rapidly changing market, tells me that we need to be aware of new opportunities and new applications and follow those. Traditional M2M industries include smart grid, industrial control and machine monitoring. But now there is an emerging need for things like vending machines and digital signage, which are changing very quickly, becoming smart and connected. Should we follow a new opportunity, we need to think carefully about which resources we should dedicate to it. Will the new application be a short-term bubble, or will it become something that is really sustainable? Will we have a competitive advantage in this new segment? We need to consider new opportunities and whether we have the right technical infrastructure for it.

How do you personally use technology in your daily life, both for business and socially?It changes, but right now I use just two items: a mobile phone and a laptop. I recently started using a smartphone with a very big screen, which means I don’t need my iPad anymore. I use my smartphone for email and social media apps like WeChat [China’s popular text and voice messaging application] and weibo [China’s Twitter-like microblog services]. I haven’t purposely tried to limit my gadgets and electronics – it’s just the convenience. I used to carry around two mobile phones for two numbers, one iPad and one laptop. That’s crazy! Now I just have one phone and one laptop.

How has work changed since you started your career?I started my career a long time ago [in the mid-1990s], and the biggest change has been in the technical methodologies used. I cannot imagine working now as I did then. Back then, there was no internet and no mobile phones. I relied a lot on telephone and fax, but fax is a one-to-one communication tool and it was difficult to share information with different people in different offices. Now, I haven’t used fax for several years and I can’t live without email. I also spend a lot of time in web conferences having meetings with people across different cities. I think web conferences are a very useful and accountable system.

25

SOCIETYELECTRONIC IDENTIFICATION

A single, secure digital identity backed by a state-issued certificate for citizens is becoming a reality in Europe

AUTHOR ADAM OXFORD

26

When Neelie Kroes, the Vice-President of the European Commission responsible for the Digital Agenda project, wrote to Commission President Jean-Claude Juncker to ask him to commit to digitizing all of the Commission’s services, she made a point of signing the letter with a digital signature.

“I believe that the European Union should modernize and turn all public administrations digital,” Kroes wrote in October 2014. “And I believe that the Commission should lead by example and become paperless both in-house and when interacting with the public.”

The significance of the letter wasn’t lost on an applauding crowd: it was presented to Juncker at the launch of the new and much-anticipated regulations for Electronic Identification and Trust Services (eIDAS), which the European Parliament had endorsed earlier in the year. By sending a letter with a digital signature a few feet across the council chamber, Kroes was demonstrating what she believes should be repeatable across national boundaries: the end of paper-based contracting and the introduction of secure digital identities for all EU citizens, backed by a state-issued certificate.

CROSS-BORDER COLLABORATIONWhen the eIDAS regulations come into force in mid-2016, they will supersede 1999/93/EC, the mostly disregarded directive that represented Europe’s previous attempt to standardize eSignatures. The critical reform is that under the new regulations, any EU member state that issues electronic identity documents (eID) for the purpose of accessing government and commercial services should also be able to recognize eIDs issued by other EU countries.

POWER AT EUROPE’S

FINGERTIPS

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issuing digital credentials to citizens, nor will they be required to issue them. But if member states want to make digital credentials eIDAS-compatible, there will be a clear framework for recognizing, say, a Spanish citizen in an Estonian jurisdiction for public or private purposes.

Many EU states are already piloting a forerunner to the pan-European eID scheme: Secure idenTity acrOss boRders linKed (STORK), which allows citizens to access government services in their home countries while living abroad. STORK began as five pilot projects looking at business transactions, healthcare and access to tax records over borders and has now entered the second phase of trials. It involves countries that are leading the way in the adoption of electronic identity cards – such as Estonia, Spain and Belgium – but also those that have resisted national identity schemes in the past, such as the UK.

“STORK has many parallels with our approach to eID in the UK,” says Adam Cooper of GOV.UK, the British Government’s online information portal, “and it is based on many similar technologies. This means that, should we choose to, the UK could straightforwardly allow people in the UK to access services in other member states using GOV.UK Verify [a two-factor authentication system that certified companies can use to verify ID online].

“This won’t happen immediately – it’s likely to be another couple of years before we are ready for that,” he adds. “But we think it’s worth our investment of time and effort now so that we can make sure that when and if we want to be able to allow people to do that, there’s a system in place that will work for our users.”

INDIVIDUAL APPROACHESUnlike the majority of EU countries, the UK has so far resisted state-issued national identity cards. The last attempt, in 2010, was stopped due to cost and public opinion. But citizens still need to register for government websites – to pay tax or draw benefits, for example – and it’s these credentials that could be integrated into eIDAS.

“Every member state has its own culture and approach to electronic identification to access public services,” says Claire-Annie Hewitt of the European Commission. “There are national eID

The ultimate goal is that any EU citizen will be able to access government services using their own national identity token, regardless of which member state they currently reside in. Those same credentials, most likely embedded on a smart chip and easily revoked if compromised, should also be valid for identifying individuals in commercial transactions such as banking and conducting business across borders. Signing legal contracts in other countries should be as easy as sending your boss an email.

eIDAS is the result of many years of discussion, investigation and pilot schemes, and the Commission is explicit in its desire for the world to see it as the forerunner of a system that will work in any country.

Right now, the EU is drawing up technical guidelines for delivering eIDAS. The framework is due to be completed by the end of this year and is being developed by the European Committee for Standardization (CEN).

Critically, under the new regulation, member states won’t have to abandon existing practices for

Right now, the EU is drawing up technical guidelines for delivering eIDAS

SOCIETYELECTRONIC IDENTIFICATION

While storing data is an important issue, eID does not store data nor address the storing of data”PROFESSOR REINHARD POSCH

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At the heart of the debate about eID is the question of who we trust more with our personal data: the state or the private sector. Let’s compare Europe, where most citizens carry government-issued IDs, with the US, where opposition to a national ID is vociferous.

The EU believes in the power of legislation and leads the world in creating and enforcing laws to do with health and safety, employment protection and the environment, for example.

The US, on the other hand, is notoriously skeptical of big government and – in general – prefers to allow market forces to create the best solution for a particular problem. Kevin Curran of the Institute of Electrical and Electronic Engineers says: “Standards arise organically on the internet and get pushed to the forefront as a result of addressing a real problem for real people. Any solution to the problem of authentication online will not arise from legislation [like eIDAS] but rather as a result of an easy-to-deploy, scalable eSignature tool.”

In the free-market model, companies that abuse their customers’ trust by using information gathered from eIDs inappropriately will be punished by loss of business. For many, the sovereign bond between government and citizen is the only thing that grants both the capability and responsibility to implement the correct checks and balances. The EU itself makes the distinction between personal data used as “digital currency” when used to access a big tech firm’s online services, and the same data as a “personal asset” when issued and protected by government.

Academics Alea Fairchild and Bruno de Vuyst analyzed the Belgian situation in their paper The Evolution of the eID Card in Belgium. They write: “In Belgium, the citizen can ask for and use their data, see if it is correct and see who has used it, as government workers also have to use their own eID card to provide the service. This level of transparency of the process and privacy authentication has been important in the enforced uptake.”

Read more about secure national eID at gemalto.com/govt/identity

cards, citizen cards, bank cards, eHealth cards, mobile eID and so on. Since the regulation is about interoperability and not harmonization, it remains in the hands of member states to decide what means to use.”

At their most optimistic, advocates of the eIDAS system believe it will solve two problems facing EU governments: the need to save money by streamlining the process of business, and the need to improve levels of trust in government. An EU-commissioned report published in 2013 found that fewer than one in four EU citizens “tend to trust” their national government and parliament. The number who trust the EU had also fallen from a high of 57% in 2007 to just 31%.

PRIVACY MATTERSWhile ongoing economic problems explain most of that fall, in the larger OECD area, a recent study found that 40% of citizens no longer trust governments to protect their rights and privacy in the wake of revelations about internet surveillance in the US, UK, Canada, Australia and New Zealand by former National Security Agency contractor Edward Snowden. It’s telling that in the document outlining the explicit aims of eIDAS, the word “trust” is repeated 13 times.

Professor Reinhard Posch, Chief Information Officer for the Austrian Federal Government, helped to draw up the eIDAS proposals. He says the EU can use eIDAS to prove it can be trusted with citizens’ credentials by implementing identity technology with safeguards and oversight.

“It is about recognition of processes and technology of all member states,” he says. “It is about eID, not about content. While storing data is an important issue, and while we will see to what extent security technologies, encryption especially, can enable broad use, eID does not store data nor address the storing of data.

“We need to get to a point where not using this, or not offering this, results in a shift of liability,” he adds. “Services that allow higher risk by not offering eIDAS-compatible security should also have to take more responsibility for security breaches.”

In other words, eIDAS will succeed if it is seen as an essential badge of personal security and financial reliability. And who can argue with that?

A QUESTION OF TRUST

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IN NUMBERSA2P MESSAGING

A2P (application-to-person) SMS is a secure, effective way of sending messages and can be used for all sorts of things: flight reminders, product discount codes,

identity verification – even the transfer of health data from patient to doctor. So it’s no surprise that its use is growing, for now at least…

91%

OF USERS READ MOBILE MESSAGES WITHIN 15 MINUTES

OF RECEIVING THEM

BUT...

ARE IRRITATED BY UNSOLICITED MESSAGES RECEIVED ON THEIR MOBILE PHONES

SOURCE: IFOP MOBILE MARKETING WORLDWIDE SURVEY 2012-2014SOURCE: JUNIPER RESEARCH

OF EUROPEANS & NORTH AMERICANS95%

OF BRAZILIANS70%

ILLUSTRATION TARA SWART

Some say the rise of over-the-top messaging, such as WhatsApp and Facebook Messenger, is sounding the death knell for the humble SMS. But don’t count it out just yet DID YOU KNOW?

IN 2013, GLOBAL SMS TRAFFIC REACHED 7.6 TRILLION

SMS IS ALIVE AND WELL

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More on Gemalto’s SMS offering here: gemalto.com/mobile/linqus/messaging/unified-messaging

HOW BIG IS THE A2P MARKET? IT’S GROWING, AND WILL FOR THE NEXT FEW YEARS

US$

MIL

LIO

NS

500,000

0

1,000,000

1,500,000

2,000,000

2,500,000

A2P SMSs WERE SENT IN 20131.6 TRILLIONTHAT’S 22% OF SMS TRAFFIC GLOBALLY

2011

20122013

2014 2015 2016 2017 2018

A2P SMS TRAFFIC

GREW BY 16% BETWEEN 2012 AND

2013

A2P SMS TRAFFIC WILL GROW AT A 6% COMPOUND ANNUAL GROWTH RATE UNTIL IT PEAKS IN 2017

A2P SMS REVENUES WILL REACH

US$50 BILLIONBY 2018

FEWER IS BETTERMOST PEOPLE WANT BETWEEN 1 AND 3 MESSAGES PER WEEK

SOURCE: OVUM

SOU

RC

E: IF

OP

MO

BIL

E M

ARK

ETIN

G W

OR

LDW

IDE

SUR

VEY

2012

-201

4

UAE US BRAZIL FRANCE UK SOUTH AFRICA

NIGERIA0%

10%

20%

30%

40%

50%

60%

44%

28%

47%

37%

28%

37%

48%

ONCE A DAY

BETWEEN 1 AND 3 MESSAGES A WEEK

BETWEEN 1 AND 3 MESSAGES A MONTH

LESS OFTEN

Ask permission to send messages

Allow users to opt out at any point

Make sure the message is relevant and user-friendly

Deploy a regularly updated SMS firewall to protect against fraud and spam

FOUR A2P MESSAGING

BASICS

1.

2.

3.

4.

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SOCIETYBIG DATA

‘Smart city’ is the technological buzzword of the moment. How can it benefit the world’s rapidly growing urban population – and what about the security implications?

Imagine a world with a population of 10 billion – more than 65% of whom live in urban areas. The United Nations believes this is what the world will look like in 2050.

Those are big numbers – but what would they mean in practice? For one thing, that kind of population growth would put huge pressure on metropolitan areas to manage resources efficiently and supply their citizens with what they need to thrive and survive.

Many believe the answer is the “smart city”: one that provides bespoke services thanks to the ever-expanding mountain of digital data we generate 24 hours a day.

The idea is that a combination of structured data (such as the databases of names, ages and addresses that municipal and health authorities possess) and unstructured data (the information coming from machines hooked up to the Internet of Things) will tell cities who is using what services, how and when. Properly analyzed, all that information – usually referred to as “big data” – could improve everything from traffic flow and refuse collection to healthcare services, because resources would be directed to where they’re most useful.

Jacqui Taylor is CEO of Flying Binary, a company that’s helping UK local authorities implement the smart city approach. “We can’t continue to operate our cities as we do today,” she says. “The ‘smart

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and radio-frequency identification (RFID) to sense the weight of trash cans so they are only collected when full.

SmartAppCity, the result of a Spanish public-private partnership, offers benefits to city councils, citizens, visitors and businesses alike. Using municipal data, the app, which could be used for any city, allows users to view everything from traffic to pharmacies, with the aim of improving quality of life and increasing traffic to stores.

And the city of Zhenjiang in China not only allows citizens to check when their next bus will arrive but also tracks buses’ positions, improving scheduling and reducing emissions. It’s just one example among many of how China has embraced the use of big data to improve quality of life for its rapidly growing urban population.

DATA WORRIESDespite the many benefits smart city technology brings, some people see devices or programs that track our movements or record behaviors like

city’ term came from a target of still providing what people need, but a recognition that we’ll have to do it in different ways. Think of it as a fabric of data that city leaders will use to make our lives better by [the] smart use of data.”

There are many examples of cities where authorities collect data, such as energy consumption, traffic flows and even public Wi-Fi usage. In addition, many people are asked to provide personal details when they interact with local municipal agencies. Increasingly, though, cities are using sensor-enabled devices to help monitor the environmental impact of cities by collecting details about sewers, air quality and garbage.

One example is the US Geological Survey Advanced National Seismic System, which uses accelerometers and real-time data analysis to monitor the structural health of buildings in earthquake-prone regions.

GMT, a global waste management company, is piloting an app in the Netherlands and elsewhere that uses GPS to help waste trucks avoid traffic jams,

China has embraced big data to improve quality of life for its urban population

SOCIETYBIG DATA

[Regulators] are focusing on how to maintain privacy while allowing people to enjoy these technologies”LAURA SCAIFE, ADDLESHAW GODDARD

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IBM reckons 90% of the world’s data has been produced in just the past two years

shopping choices as an invasion of privacy and a civil liberty issue.

Besides the obvious danger of criminals accessing personal data, Dr. Kevin Curran of the University of Ulster points to a more subtle possibility. “One of the successes of city data collection has been the introduction of smart meters,” he says. “These are network-connected and broadcast our power usage to the power company. A hacker could compromise a meter to find out about a homeowner’s peaks of use [and thus] learn when they are likely to be out.”

But municipal authorities, their agencies and private companies are aware of their responsibilities and are guarding against security breaches. One reason for that, of course, is the law. Many countries already have legislation that says organizations must secure personal data by which any living person can be identified.

Laura Scaife of global law firm Addleshaw Goddard adds that EU regulation is expected this year that will standardize expected protection levels and increase fines for compliance failures.

While she believes current legislation is “very clear” in terms of what data controllers must do to protect data, the legal industry does expect it to grow in importance. “That’s why we’re seeing this new EU legislation,” she says. “The regulators … are focusing on how to maintain privacy while still allowing people to enjoy these technologies.”

THE POWER OF ENCRYPTIONTodd Moore, VP of Product Management for the Encryption solutions at SafeNet, says encryption is vital to data security. “It used to be the case that people would use perimeter protection once data had been collated,” he says. “That’s not good enough now, as we know data can be stolen as it flows through systems. The answer is to protect the data itself.

“There are a number of ways to do that, including encryption at the point of entry, encryption for databases, encryption for files, encryption at the disk level and also the virtual machine.”

He also says access control is important: “Think carefully about who should be able to look at what, so you don’t end up in a situation where, say, one IT administrator can get into everything. Segmenting information access on the grounds of where you are,

who you are and who’s allowed to look at what will help provide protection.”

And while technology is already available to “hide” servers – “You can’t hack what you can’t see,” says Tankard – simple measures like remembering to revoke disgruntled ex-employees’ access credentials is important too.

IBM says 90% of the world’s data has been produced in just the past two years. The volume, speed and unstructured nature of this information raises the question: how do we make sense of big data?

Taylor says: “As data scientists, we take humongous piles of data and make sense of it – find the stories within it. From a traditional data analyst’s point of view, it’s a paradigm change for them, a whole new world. They often have to have their capabilities redirected because the focus is very different. When you have this amount of data, you’re looking for emerging patterns.”

But she is convinced of the transformative potential of big data: “With the population increase, we will need smarter choices, and this is about helping our cities make those smarter decisions.”

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INNOVATIONMOBILE MARKETING AUTHOR NICK BOOTH

The success of mobile marketing with consumers makes this a potentially valuable asset in B2B communications. But there are some important rules that must be observed

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When brands speak to customers, their main priority is to grab those customers’ attention, so they tend to drop the formalities. This is why business-to-consumer (B2C) marketing tends to be more playful in tone than business-to-business (B2B) marketing, where the need for decorum is given more weight.

Mobile marketing exemplifies this unspoken rule. Texting has been adopted far more in B2C conversations than B2B, which may be because the mass adoption of the SMS was an unexpected social phenomenon – the “conversation between friends” element has been easy to capitalize on. The SMS was originally conceived as a test system for telecoms engineers, and its popularity among the public was completely unplanned.

Brands have used mobile marketing successfully for years. Coca-Cola, for example, sponsored the Brand App Challenge in December 2010 (to create apps to promote Coca-Cola, Coke Zero and Diet Coke). Today, it uses augmented reality so consumers can react to TV promotions, while keeping SMS as its main B2C marketing platform.

The various forms of mobile marketing have been considered too informal for conversations with suppliers and partners, which is why B2B marketing lagged behind, according to Anne Godfrey, Chief Executive at the UK’s Chartered Institute of Marketing. But B2B is catching up, she says, and it calls for “a change in tone, language and approach.”

REASONS FOR GROWTHThere are a number of drivers for the increasingly enthusiastic adoption of mobile marketing by the B2B sector. The technology used at work is becoming less corporate, with workers demanding to use their own smartphones and tablets to access company information – otherwise known as bring-your-own-device (BYOD). By 2017, half of all firms quizzed by analyst Gartner said they would no longer provide devices to their workforce. As Cisco’s research shows, 90% of US workers use their personal smartphones for work purposes.

Meanwhile, the range of mobile marketing options has expanded to include multimedia messaging services, push notifications, mobile emails, QR codes, location-based marketing and in-app messages. The humble text has been gradually supplanted in the affections by over-the-top (OTT) messaging apps like WhatsApp and Snapchat. More than half the world’s 1.4 billion smartphone users now use the newer forms of OTT apps, according to market researcher Analysys Mason.

Mass acceptance means business conversations will increasingly be conducted on mobile devices – whether smartphones, tablets or connected eyewear – through push notifications, Smart Messages or text messaging. According to research body M&M, mobile marketing will grow by 28% in the next four years, from a US$4.3 billion global market in 2014 to US$15 billion by 2019.

Consulting firm Frost & Sullivan found marketing texts have an open rate of 98%, compared with 22% for email marketing, so the advantages of this tool are too great for B2B marketers to ignore. But there are lessons to be learned from the pioneering efforts of B2C marketers.

The power of mobile marketing lies in its intimacy, so it’s logical that unwanted advances evoke feelings of antipathy. Best practice is therefore centered on the need to respect people’s boundaries. Yes, all business is sociable, but people only accept messages from those they already know, advises Godfrey. Mobile marketing will only be effective if it builds on existing relationships. “The really successful B2B companies have always done personal,” she says. “[Mobile marketing] can build on that original feeling of trust.”

Business communications should adhere to strict governance built on a foundation of security, says Mark Slade, EMEA Managing Director for American mobile branding consultant Opera Mediaworks. He believes the most important quality for B2B messaging is a respect for privacy. “Data privacy is a big concern with the mobile marketing industry,” he says. “As targeting becomes key to more brands’ strategies, security will become more of an issue.”

Having created your secure foundations, the second most important discipline is focus. There are so many options for mobile marketing that it is easy to get carried away, according to Joy Dean, Head of Partnerships at Widespace, a mobile advertising provider based in Sweden. “Mobile marketing is a straightforward business when done well, but too often, marketers get caught up in the idea that they should [do] everything at once,” says Dean. She advises that they pick one strategy and stick with it. For example, don’t try to expand into new fields like audio streaming or second screens if your content is going to suffer.

Trade between businesses is built on reputation, so trust, security and mutual respect should be at the heart of any B2B mobile marketing strategy. Only when that trust has been secured will companies willingly opt in for messaging – but when they do, it can be massively rewarding for both parties.

There are so many options for mobile marketing that it is easy to get carried away

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Until recently, driverless cars were little more than science fiction. But the technology that underpins them has been in development for some time. Google’s self-driving cars have already covered 200,000 miles, proving that this technology is fact, not fiction. In fact, Exane BNP Paribas predicts that the market for automated and assisted driving technology will be worth US$25 billion by 2020 and US$57 billion by 2025, compared with US$6 billion today.

Driverless transit has actually been around for a while, in the form of systems where carriages or pods run on tracks or guideways. Each year, millions of people use networks such as London’s Docklands Light Railway, Rotterdam’s ParkShuttle and the personal rapid transit (PRT) systems at Masdar City in the UAE and Suncheon, South Korea.

EARLY ADOPTERSDRIVERLESS VEHICLES AUTHOR DAVID HOWELL

For driverless vehicles to become a reality, new sensor ecosystems have had to be developed that enable vehicles to be controlled. All the leading vehicle manufacturers have been steadily developing sensor technologies, such as advanced driver assist systems (ADAS). This uses a combination of advanced sensors, such as stereo cameras and long- and short-range radar, combined with actuators, control units and integrating software, to enable cars to monitor and respond to their surroundings.

CRASH CONTROLCurrent advances in collision-avoidance technologies point to a future where these sensors become ubiquitous in private and public vehicles and also lay the foundation for more intelligence, possibly based on dedicated short-range communication (DSRC), which uses radio waves. Improvements in GPS, high-resolution mapping and reliable human interfaces are all converging to deliver safe and efficient driverless vehicles.

Handing control to automated vehicles clearly has a number of economic, social and environmental advantages.

Such systems make a significant contribution to sustainable transportation, as Luca Guala, a partner at Mlab – a transit consultancy firm based in Cagliari, Italy – explains. “The automation of public transport vehicles, allowing a greater efficiency of the service, will help promote the modal shift from private cars to public transport,” he says.

But driverless cars that can run safely on ordinary roads are much more complex to produce. “The race will be won by the first supplier that is able to produce a driverless vehicle that can be sold, which means that it will have to be usable, reliable, certified and economically viable,” says Guala. “This will require a complex effort that will have to involve lawmakers and regulatory authorities, as well as technology suppliers and vehicle makers.”

However, the security of these systems must be robust enough to guard against sophisticated cyber attacks.

Andrew Ashby, Business Development Manager for Automotive at Plextek Consulting, says: “The automotive industry is realizing the harsh reality that it has much to learn from other industry sectors when it comes to managing the security of personal and safety-critical data. Everyone involved, from consumers to insurance companies to police forces, needs to see the industry making real investment in innovative solutions to protect the next generation of connected vehicles from cyber attacks.”

There is also the issue of cost. “Creating a 360-degree view of the vehicle’s environment … may cost more than consumers are willing to pay,” warns KPMG in its report Self-driving cars: The next revolution. “Light detection and ranging-based systems [LIDAR] provide 360-degree imaging but are complex, expensive and not yet ready for the market.” Indeed, the LIDAR system used in the Google car cost US$70,000. The report adds that all involved will need to have a clear and compelling business case before they invest heavily in this technology.

Last, but not least, there is the human factor. Driverless vehicles are already in mass use where fixed journey points exist, but in the case of personal transportation, where a human is needed to react to the changing environment around them, they will be much more difficult to implement. Convincing drivers to relinquish control of their cars is likely to take some time yet.

Hands off!The development of driverless transit continues, but it may still take some time before autonomous cars become a common sight on our roads

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