Public-private schemes get more value from smartcards

Government bodies and private firms should work together to encourage more use of smartcards, says ActivIdentity

Smartcard systems could generate greater efficiencies and cost savings if public sector bodies and private enterprises worked together more closely, according to a leading digital identity technology firm.

Retailers, service providers and local authorities that issue smartcards to customers and users might, for example, benefit from lower costs by having a unified system for physical and IT access, said ActivIdentity general manager Marc Hudavert.

"The potential benefits of stronger identity authentication technologies are immense," said Hudavert. "[They] encompass increased efficiency and better access to public services for all – it comes down to a relationship and partnership between local government and private enterprise."

A good example of a joint public and private smartcard initiative is the North East Regional Smartcard Consortium (Nersc) set up by Sunderland City Council, said Hudavert. Under this scheme, local students and some firms' employees access their buildings and IT networks by using the cards, and citizens use the cards for local amenities and public transport and to buy football tickets through an e-ticketing capability.

Hudavert said that such initiatives are more likely to succeed if they are implemented on a small scale, and are likely to attract more interest as organisations see the benefits of successful examples such as the Nersc scheme.

On the topic of security, Hudavert said UK financial institutions have been slow to adopt two-factor authentication standards to reduce online fraud.

"This technology has been blessed by Europay, Mastercard and Visa [EMV] and can happen now but the only reason it hasn't is that the banks have been slow," said Hudavert. "Some banks are looking at [implementing it via] a managed service and this could actually speed up the process because it will lighten the burden [on them]."