Valimo Newsletter June 2009

Valimo Secures Mobile Money Transactions

There has been a lot of discussion in the media about the risks of mobile money transfers and mobile banking recently. For financial institutions, global mobile money transfers offer great revenue opportunities, as they are expected to exceed $5bn by 2013.

At the same time, consumers' expectations to manage banking and payments anywhere and at anytime is creating pressures to renew business processes and systems. Secure mobile transactions with rigorous identification and authentication as well as ease of use are the key to get these services accepted and adopted by the consumers.

"Need for improved security in digital services increases the push for digital authentication and signing," says Juha Murtopuro, CEO of Valimo. "Security issues with currently used pass code technologies such as one time passwords (OTP) and tokens are increasing as hackers are getting more clever."

"At the same time, online and mobile banking transactions as well as user numbers are increasing. Mobile ID provides a solution to the challenge with its strong security on mobile money transfers and payments as well as mobile and online banking. And it is already used in millions of transactions by financial institutions around the world."

Juha Murtopuro, CEO of Valimo was speaking at the International Mobile Money Transfer Conference
in Johannesburg in May, 5th. on "Network operators round table - what are the mobile money transfer opportunities for mobile network operators (MNO) and mobile virtual network operators (MVNO)".

Great expectations for Finnish Mobile ID

If the legislation on electronic identity authentication is ratified, Finns have no need to carry an ID or debit card next year. Mobile phone with a new SIM card and a PIN code will be enough.

The Finnish operators DNA, Elisa and Sonera and the financial sector are eager to launch the service. However, implementing the new system will require considerable investments. Therefore the Federation of Finnish Financial Service, the banking sector and operators are collaborating to launch the services. End-user price of the services will most probably remain on the level of currently used banking authentication systems.

"The aim is that consumers need not leave their homes. The secure SIM card is mailed to them and they can take it into use by activating the SIM with their current online banking authentication passwords," says TeliaSonera's Development Manager Pekka Turpeinen.

The new system and the old one will coexist until the mobile ID will replace the currently used systems completely.

"The Finnish online banking authentication system was created about 25 years ago and has functioned quite well. There are 340 million online bank entries annually and as many as 16 % use online banking on a daily basis," Turpeinen says.

"We believe the authentication will be in use in 2010. We're creating a sensible and cost-efficient business model for millions of consumers. The future services will also decrease need for driving, as you no longer have to physically go to civil service offices," says TeliaSonera's Product Manager Jan Vettensaari.

There are also indirect environmental benefits to consider.
"TeliaSonera sends out 36 million sheets of paper weighing 180 tons each year. Online transactions would save both nature," reminds Pekka Turpeinen.

Benefits for companies ahead

"There are also savings for companies ahead. There's no longer need for several authentication systems, when one authentication password can be applied to all services. In future all you need is two strings of numbers you can select yourself," says Valimo's marketing and communications director Marika Pirhonen.

"The problem with the old online password lists is for example accessing mutual accounts. With the mobile ID, one consumer may have several profiles simultaneously, for example business and private use or representative of a minor," Pirhonen continues.
Read full article on Valimo's web site

Valimo speaking at EEMA, London 25th June

Valimo CCO Antti Vihavainen will speak at the European e-Identity Conference (eema)
about getting to grips with mobile eID. Mr. Vihavainen will speak in an interactive session with the title: "Best Practises in Launching Mobile Identity". The presentation will be examining how "traditional"
eID can be complemented by enabling mobile phone based identification.

Mr. Vihavainen will present concrete examples of several countries where mobile ID is being currently used. He will also introduce a library of use cases.

DigiNotar and Valimo to introduce mobile authentication and signing service in the Netherlands

DigiNotar is specialised in trust and security solutions, such as identity management, electronic signatures, reliable document exchange and electronic archiving. It is the market leader in Internet Trust Services in the Netherlands.

Valimo and DigiNotar are jointly introducing mobile authentication and signing solutions for the Dutch market. The new Mobile Signature Service Platform, MSSP, extends the current online signature portal to mobile channel and provides authorities and enterprises safe mobile authentication, enabling the use of mobile phones in any service requiring personal authentication, identification or a legally binding signature.

"Our customers are already accustomed to use legally binding electronic signatures in several areas. By expanding the services to mobile, DigiNotar becomes one of the pioneers to offer flexible mobile signature solutions," says Tony de Bos, CEO of DigiNotar.

"We see great benefits in the increased level of security and convenience this technology offers our customers. With one mobile device, customers can use electronic signature and authentication wherever they are. Many of our customers are situated in finance, enterprise, e-government and e-commerce sectors. This offers efficiency and commercial opportunities for them," de Bos continues.

The company is evaluating the prospects of expanding the service also to other European countries, such as Germany. For Valimo, the co-operation with DigiNotar marks the company's entry to the Dutch market.
For further information: DigiNotar

Valimo Opens Office in Hong Kong

Asia-Pacific (APAC) region is the fastest growing mobile phone subscriber market. The subscriber numbers are expected to increase from 1.4 billion in 2007 to 2.9 billion by 2013. This means that over 50% of the world's mobile phone subscribers will reside in the region by 2011.

The fast growing APAC market is also quick to adopt new mobile innovations to provide consumer services. Due to the rapidly increasing demand in Asia, Valimo is opening a new office in Hong Kong to strengthen its presence in the region.

Valimo Headquartered Now in Helsinki Center

Valimo head office has relocated to Eteläranta in the very heart of Helsinki city on June 1. The new offices are close to all amenities and easily accessible to all customers and partners. For more details visit www.valimo.com/contact

Valimo turns mobile phones into digital identification cards. The new breed of Mobile ID replaces the need for a multitude of passwords and tokens. With Valimo technology, mobile phone users can securely authenticate themselves and legally sign documents, just by using their mobile phone and a simple PIN code. Based on Public Key Infrastructure (PKI) technology, Valimo Mobile ID works in every mobile phone with a SIM card inside.
Valimo's mobile signature solutions are global market leaders in terms of installation base and number of active users. Valimo solutions are used by mobile operators, banks, corporations, governments, public sector and other service providers. Founded in 2000, Valimo Wireless is privately held and headquartered in Helsinki, Finland. For further information, please visit www.valimo.com.

Valimo Wireless Ltd. | Eteläranta 12, FIN-00130 Helsinki. | info@valimo.com