Secure and cost effective transaction model for financial services

With the advent of the e-commerce, it has become much easier for a ‘data bandit’ to sit in non descriptive location and quietly siphon away money from the service users. The financial service outlets (e.g. automated teller machine (ATM), point of sale (PoS) terminal) have been a soft target for these bandits since long. In the existing model, the users are forced to trust a service outlet to be authentic. A spoofed outlet can collect the account information and use it in some way later. Installing an outlet is also an expensive affair due to the need of dedicated network connectivity. In this paper, we propose a model that would overcome these security and cost related issues of the conventional Financial Service Model. In developing economies, where two-third of the population still lives in rural areas with limited or no network connectivity, this model can help the banks reach the masses and foster economic growth.