In reply to Morgan Woods:
When the letter arrived saying they were introducing this I sent them a complaint telling them why it was such a pain in the arse and got back some patronising response about how it is all for the customer's benefit and how it isn't really an inconvenience to have to cart around a security dongle everywhere you go.
After being an HSBC customer for 17 years every time I now hit something I can't do without hassle I'm just transferring that action to my Santander account.. if they want to scare all their customers away then that's their choice.
Santander's equivalent to this, incidentally, is that whenever you want to do something like set up a new payee etc. they instantly send you a one time code via text message. Simple, effective and only needs you to have things you already carry around with you anyway.