National Australia Bank Launches Retail Internet Banking Product Developed by FICS

Business Wire, July 17, 1998

MELBOURNE, Australia--(BUSINESS WIRE)--July 17, 1998--

Editor's summary

Melbourne-based National Australia Bank - the largest financial institution in Australia and part of the National Australia Bank group, one of the world's largest financial services groups - has launched a FICS-developed transactional Internet banking suite for its retail customers. Developed as an "Australianized" version of FICS Group's standard FICS - Retail Internet Banking product, the new system leverages the Java programming language to offer a range of on-line banking services to the Bank's customers. The product is currently undergoing a trial with staff members and selected customers. National Australia Bank plans to make a full launch of the product later this year.

National Australia Bank began working with FICS Group at the end of 1997, following a search for a secure medium for offering Internet-based banking services to its customers. The Bank chose the FICS - Electronic Services Delivery Server, running under an AIX platform, to handle transaction processing and the links to the Bank's existing back-office systems. On the customer side, the Bank chose a customized version of the standard FICS - Retail Internet Banking product. Customization and `Australianization' of the FICS - Retail Internet Banking product was handled by FICS Australia, FICS Group's Sydney-based subsidiary.

"We were insistent that the Internet banking solution we presented to our customers was one in which we could all have confidence," says Glenn Barnes, Executive General Manager, Business and Personal Financial Services at National Australia Bank. "After an exhaustive global search, we have launched an Internet banking service that meets all of our criteria."

Standard FICS functionality, with an Australian twist

National Australia Bank's product is based around the standard functionality of the FICS - Retail Internet Banking: account reporting, transaction initiation, and customer messaging. It also integrates Australia-specific customizations, developed for the Bank by FICS Australia. These include BPAY payments (the nationwide standard for electronic bill payments launched in 1997) and Australian accounting standards. Direct Payroll payments and Import of Direct Entry files conforming to the APCA (Australian Payments Clearing Association) standard will be added.

"National Australia Bank's service will go far beyond simply replicating functions offered by telephone banking," adds Mark Hartley, Country Manager of FICS Australia. "The system offers customers the ability to configure information to their own needs."

The new service will offer such advanced functions as:

--the ability to purchase a term deposit

--support for reporting the last 100 transactions

--the ability to sort transactions into an order determined by

each individual customer

--email transmission and receipt

--activation of same day and future dated payments including BPAY

--Periodic Payments and Inter Bank transfers

--Import/Export to other local PC applications such as Excel

Java: the long-term solution

National Australia Bank's product is the first Internet banking product on the Australian market to be developed in the Java programming language. The FICS - Retail Internet Banking product on which it is based is written in pure Java code. As such, it can be run on any computer with latest generation Internet browser software.

"When it came to developing our international Internet banking offering, Java offered many benefits over a simple HTML-based solution," explains Etienne Castiaux, Director, Products Unit at FICS Group in Brussels. "For example, local storage of processing functions mean that a bank's customers only need to download essential data from the bank's server. And as Java offers Object Oriented development - i.e. the possibility to scale, upgrade and re-use components - new functions can be integrated in an incremental way."

The National Australia Bank product can thus evolve to include extended functionality in future. Possibilities include the recharging and interfacing with electronic purses (e.g. Proton or Mondex): this option is already available within the FICS - Retail Internet Banking offering.

Strong security

One of National Australia Bank's priorities in choosing a developer for their Internet banking product was to guarantee security. FICS Group's solution provides 168bit 3DES channel encryption, as opposed to just 128 bit SSL (Secure Socket Layer) technology. It also uses client and server authentication (`dual authentication') with 1024bit RSA, maintains data integrity via the SHA1 (Secure Hash Algorithm) algorithm, and provides for non-repudiation through the signing of Java applets. National Australia Bank also chose to implement the use of a digital certificate stored on the clients hard drive. This is another first on the Australian market, and adds to the matrix of security solutions within the FICS - Retail Internet Banking product.

"The FICS - Retail Internet Banking product is designed to accommodate the security preferences of the bank," continues Etienne Castiaux. "As well as locally stored digital certificates - the choice made by National Australia Bank - smart card support is also available."