Finance

18-03-2014

Higher demand for personalized banking creates security risks

Technology enables bank and finance institutions’ customers to demand a more personalized customer experience. At the same time new entrants, such as telecom carriers and electronic wallet providers, make an already competitive market even more competitive. Thus customer-centric strategies are very important for banks and financial institutions, and the main focus is on technologies that enable an enhanced and more personalized customer experience.

According to Gartner (2013) this means an introduction of:

  • Multichannel integration platforms
  •  Mobile apps for smartphones
  •  Personal financial management software to enable greater customer empowerment.

All of these vehicles for technological development makes bank and financial institutions more vulnerable for security breaches, which puts the highest demands on system service providers to ensure security at the best standard.

Cost reduction and flexibility

Because the European finance industry is one of the more vulnerable industries in terms of economic downturn, the focus on cost-reduction strategies still dominates when it comes to IT strategies.

The main focus will therefore be on strategies and technologies that can help reduce costs.  Examples of this are banks that are reducing the number of branches by moving the customer interaction over cheaper channels such as the Internet and mobile phones (for example, Danske Bank in Ireland or Bankia in Spain).

Cloud services are not effecting business

Cloud services have received some interest from the financial institutions, mainly because of the advantages they provide for cost reduction and changes in cost structure (from fixed costs into variable). Nevertheless these potential changes are largely limited to infrastructure projects in horizontal solution areas, such as security and enterprise communications. The latter is mainly seeing the cloud used in services such as email/messaging and some examples of SaaS.

Experience tells us

We have experience with hosting financial exchanges and brokerage systems as well as creating high-security systems for websites. As a level one PCI DSS (Payment Card Industry Data Security Standard) vendor we make sure that critical information is safe from unauthorized access.  We continually evaluate potential security problems proactively to be at the forefront of the situation; maintaining high availability at all times.