Tag: banks

Banks make digital transformation a priority

Bank CrisisMore than 85 percent of banks cite implementation of a digital transformation program as a business priority for 2018, according to the EY Global Banking Outlook 2018.

Investment in technology to drive efficiency, manage evolving risks and benefit from growth opportunities is seen by banks as “critical for sustainable success”.

Addressing cybersecurity is the top priority for global banks (89 percent ) in 2018, replacing last year’s top priority of managing reputational, conduct and culture risks, which falls to sixth place in this year’s report. Recruiting, developing and retaining key talent (83percent also garners significant attention as banks strive to integrate cyber experts into their organizations amidst a skillset shortage.

The survey of senior executives at 221 institutions across Europe, North America, emerging markets and Asia-Pacific shows that banks are seeking to become digitally mature, completing the transition from regulatory-driven transformation to innovation-led change in order to insulate themselves from future downturns. Respondents indicate that few banks (19 percent ) currently consider themselves as either digitally maturing or a digital leader, but more than half (62 percent) aspire to be one of the two by 2020.

Jan Bellens, EY Global Banking & Capital Markets Deputy Sector Leader, said: “In order for banks to weather the performance challenges that lie ahead, they must prepare for a future led by innovation and technology. The pace of innovation continues to accelerate, and banks must have a strategy in place to ensure their implementation of new technology is effective.”

More than 59 percent of banks surveyed anticipate that their technology investment budgets will rise by more than 10  percent in 2018.

For banks that are beginning to invest or increasing their investment in new technologies 44 percent plan to buy the technology from a third party, while only 17 percent plan to acquire an “entity to onboard” the technology.

More than 70 percent of banks cite strengthening their competitive positioning as a key reason for investing in technology by 2020.

Enhancing cyber and data security is the number one priority for banks, with 73 percent of banks planning to invest in technology to mitigate cybersecurity threats, supporting enhanced cyber and data security as a business priority.

Bill Schlich, EY Global Banking & Capital Markets Leader, said: “Ten years after the global financial crisis, banks continue to experience increased competition from a range of new market entrants and evolving risks that challenge their ability to deliver sustainable profitability. To perform at the highest level, institutions must emerge from an era of regulatory driven transformation and develop strategies to tackle the new evolving risks that are preoccupying the C-suite.”

Banks hit by cyber crooks

wargames-hackerRespected anti virus company Kaspersky Labs believes that crooks have targeted banks and that could lead to as much as one billion dollars of losses.

Kaspersky thinks the attacks were made using so-called phishing scams to access up to 100 banks’ networks and so gained access to cash machines and drew out the money.

But the attacks are confined mostly to Russia, with some attacks made on banks in Ukraine and China.

The company worked with Interpol on an investigation and it claims that the attack is one of the most significant security breaches yet.

The amount is difficult to pin down and it’s believed the billion dollar figure may have been overstated.

The crooks involved in the scam are believed to still be active but there’s no indication on where they’re based or how they gained access to ATMs.

Office warned over data hack

wargames-hackerThe Information Commissioner’s Office (ICO) has warned high street retailer Office after a hacker gained access to over a million customer records.
The ICO said the hacker accessed contact details by cracking open an unencrypted database that was due to be phased out.
The information went undetected and the ICO has had Office sign an undertaking to ensure problems associated with the hack are resolved.
In that undertaking, Office CEO Brian McCluskey said that the firm made no reference to retention of data and didn’t give formal data protection training.  Both these are now being addressed.
The ICO said that there was no suggestion that the breach went further and no bank details were stored.


Chips with built in security go postal

smartphones-genericABI Research believes that by the end of this year processors including embedded security technology will reach the billion mark.

Vendors are building in the Trusted Execution Environment (TEE) will reach 366 million as part of that figure.

The shipments are driven by governments, financial service companies and other enterprises largely to ensure secure ID and payments.

The market for TEE devices is still in its early stages, said ABI.  But shipments are bound to increase for them and for Host Card Emulation (HCE).

ARM is integrating TruZeone architecture into every Cortex-A family processor it licenses to vendors.

Unlike TEE devices, HCE depends on the cloud and lets banks introduce mobile NFC products without relying on smartphone SIMs.  ABI said that HCE support in smartphones is growing exponentially, and will account for shipments of 252 million by the end of the year.

Players in the game include ARM, Nok Nok Labs, NXP Semi, Infineon, Trustonic and Obertur Technologies.