Each online banking customer is given a small calculator-like device, about the same size as a box of matches (with a key-ring attachment). As part of the login process for an online account the user is given a four digit code by the server. The user types the four digit code into the device and is given another four digit code in return - this is entered into an online form and must be correct to allow for account access. Since each of the devices is unique to the user and cannot be shared (as it would provide the wrong codes for anyone other than the intended customer) it fulfils the ‘things you have’ criteria.

So internet banking itself need not be inherently insecure - it just is in the UK. I know for certain that all banks in Sweden use this system, and there are others in different countries too. Why British banks have not adopted such a system is not clear…

Cycling is really a multi-faceted thing, cyclists are usually into one area (mountain biking, commuting, road-racing, track racing, bmx stunt riding, etc) and purchases relating to one don’t necessarily appeal to the others.

There is a move to create cycling equivalents of MySpace social networking with sites like http://velospace.org/ and to offer AJAX functionality with shared route planners like http://www.bikely.com/ .

What there hasn’t been is a concerted effort to benefit fellow cyclists by using the collected information of individuals.

Web 2.0 works when the web pages are more than brochures and serve the user as well as collect information (which becomes greater than the sum of parts). No cycling site that I’ve seen does both well.

So cycling hasn’t got there, hasn’t yet benefited. But a start has been made and once the benefits are fully understood I’m sure they’ll catch up quickly.

And hey, if you work in the industry and can get any of my ideas on on-line banking implemented feel free to show them to whoever you want. As soon as it starts to get implemented others in the industry will be at a disadvantage and will be forced to provide their own services to compete. This is good for all customers as transparency and control of finances will help a hell of a lot of people in this debt-ridden age.

There are huge possibilities for web 2.0 characteristics (tagging, etc) to make their way into many different industries. I agree that banking is a great place for that. I work in the industry, and while it is typically a slowly responding industry (mainly because of the security, as you mention) i feel like it would be a great way to add value to the customers, and increase online banking usage, which is more convenient for the user, and drives costs down for the bank… it’s a win/win.

Thanks for the post, I’ve grabbed your RSS feed, and look forward to reading more from you.

On a side note, looks like your into cycling… has web 2.0 had much adoption in that area?