It may look like a calculator, but it isn’t. It’s Visa’s CodeSure, a fraud-fighting technology that generates one-time passcodes for mutual authentication of online transactions. The back of CodeSure cards incorporate an alpha-numeric display, a microprocessor, a 12-button keypad and battery good for three years.

Here’s how it works:

• When shopping online or logging in to an online banking service, the cardholder activates the authentication process by pressing the “Verified by Visa” option button on the card’s keypad.
• When prompted, the consumer inputs their PIN into the keypad embedded in the card.
• A unique one-time-passcode appears on the card’s display, which is then used by the cardholder to authenticate a normal Verified by Visa transaction.

You can get a general sense for how it works in this short overview video:

VISA CodeSure – PHONE AUTHENTICATION

CodeSure cards can also be used to authenticate online banking sessions.

• When a cardholder accesses their online bank, they would be provided a dynamic numeric challenge code (a number) from the bank.
• The challenge code would be entered into the Visa CodeSure card by the cardholder, to confirm it is a request from their bank
• Only when the challenge code has been entered and correctly verified and approved is the cardholder then prompted to enter their PIN into the card
• This subsequently creates a unique one-time passcode for access to the online banking with both parties being mutually reassured.

The same steps would apply if conducting a transaction over the phone using Visa CodeSure. The following 1-minute video illustrates how CodeSure can be used for authentication in a customer service call:

VISA CODESURE – PHONE AUTHENTICATION

CodeSure technology can be incorporated into any Visa debit, credit, prepaid or commercial card.

Visa initially started developing its CodeSure technology in 2009. Visa, along with partner Emue Technologies, conducted extensive pilot trials with eight European banks and their cardholders. Following pilot programs in the UK, Italy, Israel, Turkey, Switzerland and Germany, Visa now says CodeSure is “fully available for commercial launch,” but it appears that launch will initially be limited to Europe. Presently, it isn’t clear when- or if CodeSure cards will be coming to North America.

Visa has approved use of CodeSure cards for the following purposes:

• PIN generated one-time-passcode for Verified by Visa payments at participating merchants globally – without changes to merchant software or cardholders having to register and remember passwords
• PIN-generated one-time passcode for online banking access
• PIN-generated one-time passcode for telephone banking services
• Transaction signing for online banking services, using specific elements such as Account Reference Number or amount of transaction
  Access to third-party services such as frequent flyer programs or corporate virtual private networks (VPN) for commercial card users.

Sandra Alzetta, Head of Innovation at Visa Europe, suggested that CodeSure cards could have other, more broad uses. For instance, companies might use them as portable password generators. “The solution goes beyond just online and remote shopping but also allows organizations to use the card in place of other online log-in systems to access, for example, corporate virtual private networks (VPN),” Alzetta said.

“The Visa CodeSure card offers banks a solution to fulfill all of their multi-channel banking requirements,” the company said in a press release. “The use of PIN-generated, one-time passcodes and mutual authentication technology, will provide banks with an attractive solution that enables security and convenience in the same device – a Visa payment card.”

BofA rolled out a similar service dubbed SafePass in 2008.

Thanks to CashCow.in, the #1 financial marketing blog in India, for the lead.

Grow4Students.org is a stand-alone banking website from Grow Financial built specifically for Gen-Y college students. The $1.8 billion Florida credit union essentially stripped down their primary website and reskinned it with a lifestyle veneer. The Grow4Students subsite focuses only on the products relevant to a college-age audience, packaged along with a few tips and advice.

The website has a wonderfully detailed interface, drawing heavily on Flash animations (sorry iPad users) to create an immersive, clickable environment with a genuine sense of discovery.

There’s actually a lot going on at this rather simple website. In fact, a young Grow Financial member should be able to find most of the banking tools vital to college students available right from the Grow4Students homepage, including secure access to online accounts.

The website has 18 different primary links:

Open Account (neon “OPEN” sign) – Visitors will be redirected to a PDF membership application that they must either bring to a branch or send in the mail. Sadly there is no online account-opening option.

Contact Info (yellow “don’t forget” PostIt) – Hours and phone numbers only. No email option or contact form. The site’s live online chat feature is another “contact” option missing here.

Branch & ATM Locations (roadmap) – Redirects to the main website’s branch locator.

https://www.growfinancial.org/index.cfm?fuseaction=locations.main

Checking & Credit Cards (credit cards on desk) – A window pops up with basic information and facts on Grow Financial’s e-Checking account (paying 1.50% APY) and their Student Visa. Taking the next step redirects to the main website.

Student Loans (mail at far right) – Redirects to Grow Financial’s online Student Lending Center, a fairly robust microsite.

Auto & Renters Insurance (car keys) – Redirects to Quorum Insurance, presumably a CUSO, but there is no explanation about the relationship between Grow Financial and the insurance company. Is Quorum simply a third-party company Grow Financial is happy to recommend? Or is there a vested interest?

Videos (collection of DVDs far left) – Redirects to Grow Financial’s YouTube account with 10 videos mostly about college financing.

Blog (books on left) – The Grow4Students blog has financial tips and perspectives about college planning, college life and post-graduation.

Rewards (gift in the left front) – Three different rewards unique to college students: a $100 graduation bonus, a good grades bonus, and a 1.00% APR reduction on the Student Visa.

Upcoming Events (calendar) – Upcoming seminars, such as “How to Prepare, Pay and Stay in College.”

Contests (trophy) – Nothing happening. All it said was check back later.

Discounts (jar of coins) – Redirects to a site with some online coupons for a mix of companies — OfficeMax, Nutrisystem and Papa Johns.

Music Downloads (iPod) – When you open a Student e-Checking account or Student Visa, you get five free music downloads form Puretracks.

Mobile Banking (Blackberry) – Info about mobile.growfinancial.org.

Financial Calculators (calculator) – Redirects to calculators at the main Grow Financial website.

e-Statements (wad of trash) – Information and instructions about making the switch.

Live Chat (video interface) – Redirects to Grow Financial’s live, interactive chat subdomain. (No, it isn’t video chat, despite the video camera icon you click on to access it.) The service is available Monday through Thursday from 8-5, Friday from 8-6 and Saturday from 9-1.

FAQs (mug with pencils)

The dorm room interface is a fun metaphor, although not entirely practical. A site visitor might enjoy exploring the virtual Grow4Students world on their first visit, but they could get annoyed if they were looking for something quick and specific.

“From a design perspective I think the website looks great but I find it annoying to navigate,” says Ryan Gagné, General Manager of NOW-IC, an interactive communications firm for credit unions. “I don’t like how I have to navigate away from the website for more information, and the brand isn’t carried across.”

“Overall I would prefer a more traditional website that contains all the relvent information rather than always having to click off the site to get more information,” he adds.

Some in the industry have wondered if sites like Grow4Students signal the future of next-generation banking websites — a switch from Web 1.0 information portals to…well, something else. Financial institutions have been scrambling to build this kind of cool, custom, website, but only seem to do so for the Gen-Y segment. Why is that? With a few simple tweaks, there’s no reason websites like Grow4Students wouldn’t work for everyone.

The only thing that’s certain at this point is that online “best practices” are still being defined. In the meantime, banks and credit unions keep experimenting with innovative combinations of microsites, custom accounts, PFM solutions, mobile banking, blogs, forums and social media tools like Twitter and YouTube. The prize for the perfect mix — banking’s current Holy Grail, or so it would seem — is still up for grabs.

Take a look at these videos and interactive demos and you’ll swear the future of banking hinges on the marriage of two ideas: “mobile” + “touchscreens.”

Commonwealth Bank – 2013 Vision

Commonwealth Bank, based in Australia, sees the near future of banking built around interactive touchscreen technologies like Microsoft’s Surface and Apple’s iPad. The Aussie bank’s vision includes augmented reality, geolocation, biometrics and mobile payments. “Anyone. Anywhere. Anytime.” It’s not hard to imagine that some people might be banking like this by 2013, but most people probably won’t catch up to this highly urban/upscale prediction until some time after that.

COMMONWEALTH BANK – 2013 VISION (3:06)

PNC – Virtual Wallet App for iPhone & iPod Touch

The app has three options from the main view. You can access recent transactions, a calendar and the “money bar.” You can tap and drag the interactive slider on the money bar to transfer money between accounts, then use the “roller” to fine-tune the amount. You can shake the phone to transfer money into your online piggy bank (PNC’s Virtual Wallet Growth Account). Toggle between day and month views on the calendar, where green dots indicate deposits, orange dots represent withdrawals and red bars warn of danger days. Pay bills with a graphical interface. Search for an ATM or branch.

PNC – VIRTUAL WALLET APPS (1:25)

Visa – Vision of Mobile Banking

How to do just about everything you can imagine involving a credit card on a mobile phone. The video includes a good illustration of how contactless mobile payments work. For techy types there’s an idea for how to move accounts from one phone to another using application on a SIM Card.

VISA – VISION OF MOBILE BANKING (4:32)

Kiwibank – Mobile Banking Demo

This is an understated but straightforward demonstration. It’s interactive, and perhaps too similar to the actual experience to really sell the idea effectively.

ING DIRECT – Mobile Banking Solutions

ING DIRECT in Canada has recently rolled out a robust mobile phone application for iPhones, iPod Touches and Blackberries.

BBVA – Tú Cuentas

BBVA Tú cuentas (“You count,” in Spanish) is a personal finance tool that allows online users to manage their personal finances better, offering friendly analysis tools to better understand spending and savings. BBVA has offered mobile versions for the iPhone, Blackberry and Nokia phones since 2008. This is a marvelous model showing how mobile and online solutions should be viewed as one singular solution, not two separate platforms.

Umpqua Bank – “Branch of the Future”

This 2007 video has become an instant classic among financial innovators. It’s a visionary look at the future of financial services involving mobile phones, computer tablets, RFID chips, giant wall-size TVs. Umpqua calls it “a glimpse ahead,” but the question many years later remains, “When will these innovations become reality?”

UMPQUA BANK – BRANCH OF THE FUTURE (2:34)

Union Bank – “Rock Solid”

A blogger snapped this photo of a “rock” on the teller counters at Union Bank. It turns out the “rock” was made of soft foam. “About as solid as a marshmallow,” the blogger wryly notes.

Allianz – Elevator

An elevator wrapped in graphics that look like a bank vault. The sign inside the elevator reads (translaätion): “Keep your money in a safe place.” Clever out-of-home advertising.

Visa – “Anthem”

Every two years, TV viewers around the world are treated to some of the most spectacular, inspiring ads ever created. The cinematography, the story lines, the editing are all extraordinary. Unfortunately, most of these ads don’t promote the companies who paid millions to produce and air them. They only seem to build the Olympic brand, such this beautiful mintue-long spot for the 2010 Winter Olympics from Visa.

Narrated by Morgan Freeman, the ad that talks about themes like “imagination,” “spirit,” “precision,” “speed,” “grace” and “magic,” concepts that seem markedly unrelated to either Visa or banking. It’s almost like a PSA for the Olympics: “This feel-good moment of unity and celebration is brought to you by…Visa! More People Go With Visa.”

You may prefer watching this kind of spot versus an ad for something like “Head On, apply directly to the forehead,” but you’ll quickly forget it was Visa who made it once you see a dozen other advertisers trot out their similarly commercialized celebrations of Olympic spirit and pride. You can see another gorgeous Visa spot for the Winter Olympics here.

SunTrust – “Swap a Solid” Facebook Application

SunTrust Bank recently launched Swap a Solid, a Facebook application that provides users with a forum for exchanging goods and services with their Facebook friends. At the Facebook app, you can “Request a Solid,” or view “Solid Requests.” The Swap a Solid name harkens back to the bank’s current ad slogan, “Live Solid,” although some people might think it’s disgusting to “swap a solid” with anyone other than their spouse.

Standard Bank – “Mr. HIV”

Standard Chartered, a bank serving Asia, Africa and the Middle East, made a pledge to the Clinton Global Initiative to educate one million people about the prevention and spread of HIV & AIDS by 2010. To achieve this, they commissioned an animated short film that chronicles a “Mr. HIV,” a personified virus looking for a job so he can destroy the human body. The script is entertaining. The CG is comparable to a Pixar production. As far as public health PSAs go, you can’t get much better. You can watch the whole series here.

Deutsche Bank – Greenhouse Gases Widget

Deutsche Bank recently launched a free widgetized version of its “Carbon Counter,” a landmark digital billboard in New York City which displays the running total of long-lived greenhouse gases in the atmosphere. The widget comes as part of the bank’s broader campaign to raise public awareness of climate change and encourage investment. (A widget is a downloadable, stand-alone application that can be embedded into an end-user’s web page or desktop.) It’s very interesting to see a bank commit itself so strongly to one side of a political hot potato.

Innovations FCU – “Jingle Bells Lip Dub”

You’re probably burned out on the holidays, but this video is too good to pass up. It’s a singing, dancing lip-synch of a techno version of “Jingle Bells.” The choreography involves the credit union’s entire staff — some 35+ people — in one, single 3-minute take. It is toe-tapping fun, festive and well-produced, yet not so slick that it feels expensive or pretentious. Hat tip to Christopher Stevenson at CUES who was the first to spot the video, and kudos to agency Raoust+Partners, who reportedly produced it.

Belvoir Credit Union – Brand Image & Identity

When Fort Belvoir Credit Union decided it was time to drop the “Fort” from its name, they turned to Third Degree Advertising for a new brand image and identity that is decidedly unmilitaristic.

Capitec – Simplicity

This minute-long TV spot features CG animation with a narrator in a virtual world who describes a bank that is unbelievably perfect. Quite frankly, it sounds too good to be true. The spot ends with the tagline, “Simplicity is the ultimate sophistication.”

Here are this week’s stories of interest from around the web.
Click hotlinks for the complete story.

Money for Guns: Chase gives away prepaid debit cards for unregistered guns

Credit Score: Consumer Reports’ 12 best and 3 worst credit cards

Duel: Comparing ING vs. E-Trade click-through rates

Essay Contest: Credit union holds $1,500 ‘What Do You Want’ contest

Image Problems: Aussie credit unions in the same situation as U.S. peers

Pedal Pushing: 7.99% bike loans up to $2,500

Q&A Interview: Barclays sees how sponsorships can open doors in the U.S.

More Gas: DFCU-style gas promo from a Montana credit union

Online Media: Citibank’s exclusive sponsorship of popular Aussie website ‘The Fix’

Going Swimmingly: Visa happy with Phelps endorsement

Up for Review: ING’s £4 million direct mail account

Va Va Voom: Female employees pose in bank’s pinup calendar

That’s an Outhouse! But the sign says “Future home of Auburn-U FCU”