Research Highlights Vital Role for Government to Promote Smart Cards

From Logica and Teleconomy

Government has a vital role to play in driving UK smart card adoption (and concomitantly, the rest of the world), according to new research launched by Logica and Teleconomy.
The report, "How Smart Are We On Smart Cards?," states that the UK public are more prepared to supply personal details for use in public sector smart card schemes than for corporate initiatives. And when it comes to an "all-in-one" card, half the survey respondents, representing a cross-section of the UK population, found it appealing, especially if the
Government is involved. The research was carried out in April 2002 and surveyed 500 respondents.

The growing use of smart cards gives organizations the ability to store large quantities of information about a consumer or citizen. The research shows that, at first, the convenience of an "all-in-one" card is appealing. However, as the details of the information to be aggregated were explored with research respondents, convenience was displaced by concern - and then mistrust - as the potential uses, abuses and threat of loss came to the fore.

The majority of those surveyed approved of the conceptual benefits of a joined-up card. However, as respondents were revealed the practicalities and the type of information needed for fully aggregated cards, 90 percent were reluctant to disclose information. The willingness to disclose to Government was overwhelmingly more than other third parties.

Therefore, in order to gain overall acceptance of smart cards, Government must slowly reveal the capabilities of the technology to the public. This will help to build up trust in those already warm to public sector joined-up cards and introduce the benefits to those currently rejecting it.

Commenting, Paul Lethbridge, client partner of Logica Consulting, said, "We've had some very encouraging results for public sector initiatives, which suggest that the public are ready to start embracing smart card technology. It's really important that the Government takes note and gradually introduces these programs based on incrementally revealing benefits to the citizen. Any dramatic introduction of smart cards would raise questions of data privacy and intent and could well derail the commercial exploitation of the technology."

According to the survey, 55 per cent of people would be happy to use a card that performed a number of functions. Most popular combinations were understandably the merging of debit and credit cards, where 40 percent would be likely to use a combined card.

More than one in three people would be willing to carry a combined ID card and driving license. Respondents expressed most interest in adding additional functions such as transport, ticketing, ID and membership to bank cards. Healthcare details on a card would be welcomed by 68 per cent of people, and an ID card and library card were both accepted by 66 per cent of the UK population. Cards that would enable travel on public transport were close behind at 64 per cent.

Michael Hulme, chairman of Teleconomy and a senior research fellow at Lancaster University, said: "There is a definite opportunity for companies to work in partnership with banks to establish new smart card functions. People are very familiar with carrying cards for financial purposes, and according to the research, adding new functions to financial cards is acceptable and expected by most people. With so many bank and credit cards already smart-chip enabled, now is the perfect time to start talking to financial services organizations about the possibilities for additional functions."

Logica is currently working with the HM Government's Office of the e-Envoy to assist in the development of a policy framework on the future of smart cards in the UK. Logica is providing specialist advisors to facilitate the consultative process with key stakeholders and is assisting in preparing the policy.

Logica has also implemented a smart card initiative with the Netherlands Home Office, whereby employment seekers are issued with smart cards. The cards require both PIN numbers and fingerprint matches for identification, and enable the user to register at the employment office, access data files and apply for vacancies online.
For a copy of the report, contact Faith Wootton on +44 020 7419 7000; email: faith@bbpr.com.