While its true these banks are taking a wait and see approach to new two factor autnetication software such as PassMark, or Digital Envoy, I believe the reason is not as suggested in this article.

Banks tread warily over two-factor security

But the need to introduce such additional security is still not clear-cut for banks, as they balance their reputation and customer convenience against the risk of fraud that is posed by their existing security arrangements.

And, for now, the number of UK banks adopting a wait-and-see approach far outstrips those taking decisive action, with Abbey, Barclays, the Co-operative Bank, HBOS and Royal Bank of Scotland (which includes Natwest) all cautiously looking on from the sidelines.

I have seen first hand the debate about software two factor, versus chip card/ tokens two factor.  I believe they are in synergy with each other, while some believe they are polar – one or the other.  Its possible that Barclays who are using RSA type tokens, may be in the midst of that debate.  in the end I remain convinced you need both, because the criminals are multi tasking, so we must too.

Relevance to Bankwatch:
Need to better define the security models that require software and /or hardware (chip or token) authentication.

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