Barclays

Quarterly Security Meeting

 BARCLAYS: COMPANY PROFILE

• Barclays PLC (Barclays) is a leading global financial

services provider.
• Provides commercial banking, investment banking,
wealth management, and investment management
services. 
• International: Europe US Africa Asia.
• 48 million customers.
• Headquartered in London.
• 78,000 employees.
• UK retail banking side: 14 million accounts servicing
566,000 customers.
• Barclays has 800 international branches.
 BARCLAYS: STRENGTHS

• Widespread presence, allowing it to spread

• Well-established historically
• Barclays is associated with innovation: First credit card
in 1966
• The opening of several new branches with a
refurbishment programme
 BARCLAYS: WEAKNESSES

• Bank does not plan to pay dividend on its shares,

making them less attractive to investors
• Reduction in the banks branches
• Weak Private Clients performance
 BARCLAYS: OPPORTUNITIES

• Strategy of offering a full portfolio of

services worldwide
• Asia is an opportunity for Barclays
expansion
• Barclays see self-provision as an
increasing trend
 Sam and Yazan

BARCLAYS: THREATS
• Wide range of services, customers may prefer a more specialised approach
• Barclays acquired a reputation for closing branches because of a high
incidence of this in 2000, and competitors have been able to position
themselves as more consumer-friendly through a strategy of keeping branches
open
• The Asia expansion is seen as risky given that Barclays are in a less strong
position than banking industry leaders regarding capitalisation, and this may
detract investors
• Banking fraud losses have increased in recent years leaving Barclays
vulnerable to losing money
 PROBLEM BARCLAYS IS FACED WITH

Barclays has tightened up the security of its mobile banking service after it was identified
as being weak and a risk to data protection.

Although it was not easy for people to have money stolen, people whose card details were
seen by third parties could have their banking transactions exposed to prying eyes.

The problem affected the Barclays.Mobil web link which connects customers to pages
designed to be viewed on mobile phones.

The site allows users to view their financial transactions if they answer four basic security
questions.

Three of the answers are available on the card itself. These are surname, 16-digit account
number and three-digit security code. The other question is the customer's date of birth.
 PROBLEM BARCLAYS IS FACED WITH

• Three of the answers are available on the card itself. These are surname, 16-digit account
number and three-digit security code. The other question is the customer's date of birth.

Barclays has now changed the logging on process to include a secret password.

We are making some changes to the instant and basic access functionality for
online/mobile banking as part of the ongoing development of the online banking service.
Customers will now need to opt in to enable instant or basic access as an option on their
account and will need to select a memorable word as an added layer of security.

Banking fraud losses increased by 14 percent to £59.7 million last year.

• This represents an increase of £7.2 million in online banking fraud losses compared with
2008 (£52.5 million).
 PROBLEM BARCLAYS IS FACED WITH

The Facts
14% Increase In Fraud

2010
2009
42,642,857
59,700,000
 PROBLEM BARCLAYS IS FACED WITH

The Facts
60,000,000

50,000,000

40,000,000

30,000,000 2007
2008
20,000,000 2009/10

10,000,000

0
2007
2008
2009/10
 PROBLEM BARCLAYS IS FACED WITH

• From 2007 through to 2009/10, we can see a

drastic increase rising to approximately 16%
 Rishi

BARCLAYS’ CURRENT STRATEGIES

• Online banking guarantee

• PINsentry
• Free internet security software
• Barclays system security
• Identity protection insurance: Identiguard
• Online advice for Barclays’ customers
 Rishi

STRATEGY 1: PINSENTRY
 Rishi

STRATEGY 1: PINSENTRY

Advantages
• Security
• Customer Loyalty
 Rishi

STRATEGY 1: PINSENTRY

Disadvantages
• Must have Bank Card and Card
reader on you
• Inconvenient
 Katie

STRATEGY 2: ACTIMIZE

Actimize – leading provider of transactional

risk management software for the financial
services industry.

 cross – channel surveillance

 detection
Prevention

Serves more than 200 clients. (top 10 global

banks.)
 Katie

STRATEGY 2: ACTIMIZE

Implement :

 Verification system which uses an automated phone call

to your online banking customers.
 It verifies the transaction they are making online to be
genuine.
 Personal identification number to confirm and
authorise.
 Katie

STRATEGY 2: ACTIMIZE

Advantages Disadvantages

 add security/minimise  fraud criminals jamming

risk phone lines

 customer satisfaction,  if phone unavailable,

safety and protection transfer, payment not
(money is accounted and confirmed/authorised
confirmed for.)
 Katie

RECOMMENDATION: Actimize

Based on the SWOT Analysis and research on these strategies,

we recommend that Barclays chooses to implement Actimize.

Our reasons for this are: