Microsoft to Provide 'Ultra-Secure' Bank Software

Microsoft is poised to enter the banking business, set to provide banks with software to ensure ultra-secure transactions over the Internet. The Windows 2000-based system has enhanced verification capabilities allowing banks to know exactly whom they are conducting business with online. According to an Associated Press report, the technology "matches a security framework designed by Identrus, an alliance of 150 of the world's largest banks."

This new software initiative has the Redmond giant partnered with Unisys and Baltimore Technologies. The AP reports that Baltimore will contribute its Public Key Infrastructure security system, and that Unisys will support customers using the system. Microsoft is not creating a new product, but rather will utilize its partners to "match Identrus' specifications with a single purchase."

A lack of sufficient Internet security has contributed toward the continued use of traditional methods of communication, such as overnight mail, to seal deals. Microsoft's global director of financial services, Bill Hartnett commented, "Previously, communications between businesses could be performed over the Internet, but businesses often resorted to completing deals by overnight mail. This will allow banks to do things such as verify letters of credit by computer."

Consumers may question the integrity of Windows 2000 being used in conjunction with banking, as the operating system has been under scrutiny since its debut for security problems. Although the software is based on the banking industry's own framework, partnering with Windows 2000 may prove controversial.