Banks are under enormous pressure from within, customers, shareholders and regulators to successfully mitigate cyber risks.
In this video, KPMG’s Charlie Jacco, who leads the firm’s financial services cyber security practice, outlines the seemingly conflicting initiatives banks must juggle: Keeping the organization’s and its clients’ data secure while providing easier access to customers who are increasingly frustrated by passwords, biometric identification methods, and other emerging security techniques.
There is no “one-size-fits-all’’ solution for a bank and is customers, leaving institutions to orchestrate the many dimensions of this vital challenge for multiple internal and external stakeholders.
There are some macro trends right now going on in the banking industry as it relates to cybersecurity as a whole and especially for us as consumers. First and foremost, it really just becomes the advanced nature of the fraudsters and the malicious attackers and their ability to very quickly adapt to new technologies, and the banks have to now keep up to better protect our data, and that goes across their enterprise and the removal of that data into the environment.
Second is privacy. As a whole with the European Union and GDPR right now, privacy becomes a concern. How do you leverage the data more holistically, especially with new US regulations like the California CCPA?
Then lastly is just the expectations of the customer and the customer experience and some regulations even in Europe at open banking standards. As fintechs compete in this space and become more and more competitive with the banks and the old brick and mortar, it's going to be important for banks to focus on newer technologies and get a better customer experience ,while keeping things secure.
I think it's important for banks to not view consumer cybersecurity as a one-size-fits-all solution. I think you need to invest in technologies that allow the customer to personalize the way in which they interact. Maybe some customers want to use biometric authentication and login with thumbprints and selfies and facial recognition. Some may want the old school one username and password and send me the one time PIN when you don't recognize my device. It'll be super important, especially as the emergence of fintechs come about and offer different and unique customer experiences to individuals, especially the next generation of consumers. As they grow up in a social media world interacting with mobile and digital channels, it'd be hyper important for banks to invest in technologies that allow and cater to all of their consumers and not just focus it and target it on a one-size-fits-all technology solution