Entersekt Looks to Expand its Services in Europe

Entersekt, a global Fintech company in the field of high-security authentication, wants to significantly expand its presence in the DACH region.

Since 2008, the company has successfully commercialized its transactional authentication solutions, which are used primarily in mobile and online banking and online shopping. More than 12 million bank customers are protected by technology all over the world. After Entersekt in the DACH region already convinced Swisscard and PlusCard of the performance of its solution, now further card-service providers and banks are to follow. Entersekt sees secure authentication as an essential foundation to regain consumer confidence in the security of online transactions and to develop new digital banking services.

“When banks solve the issue of security and regain the trust of customers in online transactions, that is the basis for the digital bank of the future,” said Schalk Nolte, CEO of Entersekt. “Our technology is therefore a true catalyst for the digital transformation of the banks. With the integration of the Entersekt solution, banks can focus on their business processes, the maintenance of their customer relationships and, above all, on new, innovative offers. ”

Banks using Entersekt technology can significantly increase their customers’ trust in the security of mobile and online banking. For example, since the integration of the Entersekt solution at the South African Nedbank in 2012, the number of cyber attacks has declined by 99%, while the use of mobile services has also risen sharply. The innovative Entersekt solution also significantly reduces transaction costs. The high degree of user friendliness also significantly reduces the drop-out rates for online banking or e-commerce transactions.

Successful implementation at Swisscard and PlusCard

Entersekt solutions already protect the transactions of twelve million bank customers worldwide, including five of the six largest banks in Africa. Also in the US, Entersekt is gaining more and more banks for its innovative, user-friendly solution. Finally, the 1st Bank of Colorado decided to integrate the security solution into its banking app.

Since Swisscard has already been cooperating with Entersekt in the DACH region for some years, the German savings banks have been using the Entersekt solution since this year. With a second, independent authentication channel, all transactions of credit cards issued by Sparkassen’s partner PlusCard are secured using the 3D Secure method. The decision was made on the Entersekt system because of the intuitive user friendliness and the easy integration into existing authentication procedures. The Entersekt solution also supports the use of biometric data for a high-security identity management (IDM) or identity and access management (IDAM).

Strong partners for seamless integration

The Entersekt system was implemented by the partner company Netcetera both with PlusCard and Swisscard. After an online registration, Swisscard and Pluscard customers can use the new authentication procedure and approve payments with one click. The transaction is not verified via the compromised browser, but via a second, completely independent, direct and highly encrypted communication channel with the bank. The use of the Entersekt technology completely eliminates the use of hardware tokens and one-time passwords. The Entersekt solution meets both the stringent requirements of the BaFin (MaSI) and the future PSD2 regulations.

DACH region offers high market potential

Entersekt is active in a highly expansive market. Only around 10% of authentication solutions in use today rest on out-of-band, push-based mobile technology, but the research company Gartner expects that by 2019 over 60% will do so. Out-of-band multi-factor authentication significantly increases the security of online and mobile transactions – and thus creates the prerequisite for higher user numbers.

“In the DACH region, the number of mobile banking users is still clearly behind other countries. The key factors here are, above all, reservations with regard to transaction security. At the same time, the demand for mobile, user-friendly offers is growing particularly for the young target group. We address both of these with our solution, “said Claudius van der Meulen, Vice President of Business Development Europe at Entersekt. “Our goal is to win at least another leading bank for our solution by the end of 2017. The next step will be the opening of a branch office in Germany. “