Aconite advances UK chip and pin adoption in partnership deal to battle card fraud

TNS rolls out Aconite EMV solutions to create faster and safer banking for UK customers

Aconite, a leading global provider of smartcard consultancy and software solutions, is today announcing a partnership deal with Transaction Network Services (TNS) to better enable banks to deliver safer, more efficient bankcard transaction services to UK customers. TNS, a leading UK transaction processor, is rolling-out Aconite’s EMV (EuroPay, MasterCard, Visa)[1] authorisation, transaction and post-issuance scripting solutions to UK banks to increase operational and cost efficiency and help address mounting card fraud.

Following UK card fraud losses of £504.8m in 2004, an increase of 20% from the previous year, financial institutions are focusing on how to reverse this trend and ensure the right investment is made. Accordingly to the Boston Consulting Group[2], European banks are expanding their IT investments to protect against card fraud and meet growing customer need for transaction speed and efficiency, allocating a quarter of IT budgets to development and innovation.

Aconite’s partnership with TNS is one such example of how EMV technology innovators and card issuers can work together to help balance risk and investment and optimise safe and efficient EMV transactions. After implementing Aconite’s suite of end-to-end EMV solutions earlier this year, TNS is conducting a pilot scheme with UK financial institution, Norwich and Peterborough Building Society (N&P) to deliver EMV compliant cards and transaction services. Using Aconite’s EMV Transaction Enabler and EMV Risk Manager, TNS is helping N&P move to full EMV compliancy to meet demand for faster and more secure authentication.

James Cronk, Aconite Marketing Director said, "The UK banking sector is now at a stage where EMV migration is near to EMV exploitation – and it is partnerships such as these that will provide banks with the right tools to remain ahead in an increasingly competitive industry."

"We are pleased to be working with TNS to deliver more cost-effective EMV technology migration strategies and dynamic risk management that will reap benefits for both the bank’s bottom line – and the bank’s customers."

Tim Bell, VP Operations at TNS in the UK, commented, "We are seeing increased demand from financial institutions across the globe for technology and processes to reduce customer churn by increasing confidence in their security capabilities and general service provision.

"Aconite has worked closely with TNS to ensure we retain a competitive edge through EMV compliancy, proving to be an extraordinary partner that understands both our requirements and those of our customers."

Norwich and Peterborough Building Society (N&P) has now completed a successful pilot that resulted in the delivery of over 2,000 successful transactions. N&P will be migrating customers from magnetic strip cards to EMV cards across the UK during 2005 and beyond.

Paul Rippon at N&P said, "Now that we have completed the initial trials, we are looking forward to providing our customers with chip and pin cards to provide more secure transaction functionality. The investment we’ve made in this technology will help to strengthen customer confidence and enable us to provide add-on services that will generate new revenues and services."

Visa predicts that, by the end of 2005, nearly 90 per cent of European Visa cards will carry an internationally interoperable chip. Although Europe is leading the world in EMV migration, many other regions are making significant progress in the global migration to chip cards.

James Cronk concludes, "Although EMV adoption in the UK is advanced, there is growing interest and investment from financial institutions in other regions looking for cost effective and seamless methods of EMV migration – with opportunity for long-term return on investment through value-added services and improved risk management.

"To meet this accelerating growth and move ahead in the EMV compliancy race, Aconite is combining strategic consultancy, testing tools and software to offer the right end-to-end solution. This in turn is providing TNS with full authorisation processing for cost-effective EMV compliance for fraud prevention, risk management and off-line PIN services – ultimately reducing time and cost."

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