Welcome!

FinTech Journal Authors: Elizabeth White, Pat Romanski, Yeshim Deniz, Zakia Bouachraoui, Liz McMillan

Blog Feed Post

Modern Banking’s Hurdles in the Technology Race

With the rise in FinTech startups, increasingly stringent regulations, and changing customer behaviors and expectations, financial institutions need to adapt quickly in order to stay relevant and competitive in today’s market. We recently met with executives from over 15 global banks to learn more about the challenges they face when it comes to embracing digital transformation.

And the challenges are many—the financial services industry must maintain compliance with regulatory requirements and ensure cybersecurity while being flexible enough to meet the demands of customers. And with technology permeating every aspect of our lives, from smart thermometers and connected cars to delivery drones and smart watches, it’s no surprise that consumers are demanding more of their banks as well.

After our meetings, we found many banks wanted to be the first to modernize the financial services industry and drive innovation to enhance the customer experience. They also shared similar concerns, including the reliability of adopted technology, cybersecurity, and visibility into the cloud migration process.

Digital Reliability Is a Must

Today, most customers prefer to do their everyday banking online or on their mobile device rather than visiting a branch and standing in line to talk to a teller—in fact, a recent survey found that nearly 40 percent of Americans manage their bank accounts online while only 18 percent go to a bank branch.

With these numbers, it’s easy to understand why digital reliability is so important. Since banks deal with people’s money, technology failures can seriously harm a bank’s brand. For example, if the website goes down and customers are unable to access their accounts online, they get worried and wind up calling for help, which increases wait times to speak to a customer service representative. The end result? Lost time and a lot of unhappy customers lashing out on social media and/or closing their accounts.

The ripple effect from just one single incident can have a major negative impact to a bank’s bottom line. To help achieve customer service goals and increase customer retention, banks should have an organized incident response process in place to help minimize website and operations downtime.

Cybersecurity: An Ongoing Concern

Cybersecurity continues to be a top concern for banks. In PwC’s 19th Annual Global CEO Survey, 69 percent of FinServ CEOs reported that they are “either somewhat or extremely concerned about cyber threats.”

And no wonder: In February 2016, the central bank of Bangladesh was the victim of a major cyber heist. Five transactions withdrew a total of $101 million ($20 million of which was later recovered). In October 2017, using a similar method as in the Bangladesh heist, hackers stole $60 million from the Far Eastern International Bank in Taiwan.

These are just two of many examples. Add cross-border data exchanges, the increased use of mobile technologies by customers, and IT hiring out software-as-a-service to improve productivity to the mix—all of which make it more difficult to effectively implement perimeter security—and we begin to see why cybersecurity continues to be a top concern for the financial services industry.

The ability to respond quickly to threats can make a huge difference in keeping customer data safe while remaining competitive. For instance, financial institutions already have processes in place to alert their Security Operations (SecOps) teams when unusual activity is detected, but the real value lies in reducing response times and filtering out all the noise. Many security teams get more security alerts than they can look at, so they need a way to filter down and prioritize the ones that are likely to matter most to the business.

Visibility Into the Cloud Migration Process

Just 10 years ago, sending money via international wire transfers meant paying a hefty transfer fee on top of a foreign currency exchange fee—and recipients likely didn’t see the funds until a week later. Friends split bills by handing over cash or writing physical checks that took three to five business days to clear. Many companies still hadn’t implemented direct deposit for their payrolls, which meant employees had to take their paychecks into branches to deposit them after work, then wait until the next day for the funds to be available.

Not anymore. Today, transactions are handled fast—services like TransferWise charge minimum fees and shorten the time from when money is sent to when someone receives it. Apps such as Venmo and Apple Pay Cash have eliminated the need to write physical checks to friends to cover the dinner bill. Paychecks are direct deposited into accounts automatically and funds are available on the same day.

To remain competitive, banks need to be able process transactions as quickly as possible. Customers unable to access their money will understandably get frustrated, which can lead to them switching banks. To keep up with the speed of how customers do their banking, banks are moving some processes into the cloud. But as with any project involving large amounts of sensitive data, a lot of care is required. Bank leaders need visibility into the cloud migration process to ensure transactions stay secure—after all, they are dealing with a lot of sensitive data.

What Banks Can Do

Our discussions with financial services organizations have centered around how to become more agile in the face of the challenges presented here. To help address these challenges, it’s critical that banks respond as quickly as possible to mitigate risk. PagerDuty enables banks to respond quickly to security threats or capitalize on consumer trends, helping to increase customer satisfaction, maximize revenue, and focus on innovation.

The post Modern Banking’s Hurdles in the Technology Race appeared first on PagerDuty.

Read the original blog entry...

More Stories By PagerDuty Blog

PagerDuty’s operations performance platform helps companies increase reliability. By connecting people, systems and data in a single view, PagerDuty delivers visibility and actionable intelligence across global operations for effective incident resolution management. PagerDuty has over 100 platform partners, and is trusted by Fortune 500 companies and startups alike, including Microsoft, National Instruments, Electronic Arts, Adobe, Rackspace, Etsy, Square and Github.

IoT & Smart Cities Stories
Early Bird Registration Discount Expires on August 31, 2018 Conference Registration Link ▸ HERE. Pick from all 200 sessions in all 10 tracks, plus 22 Keynotes & General Sessions! Lunch is served two days. EXPIRES AUGUST 31, 2018. Ticket prices: ($1,295-Aug 31) ($1,495-Oct 31) ($1,995-Nov 12) ($2,500-Walk-in)
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
Nicolas Fierro is CEO of MIMIR Blockchain Solutions. He is a programmer, technologist, and operations dev who has worked with Ethereum and blockchain since 2014. His knowledge in blockchain dates to when he performed dev ops services to the Ethereum Foundation as one the privileged few developers to work with the original core team in Switzerland.
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
The challenges of aggregating data from consumer-oriented devices, such as wearable technologies and smart thermostats, are fairly well-understood. However, there are a new set of challenges for IoT devices that generate megabytes or gigabytes of data per second. Certainly, the infrastructure will have to change, as those volumes of data will likely overwhelm the available bandwidth for aggregating the data into a central repository. Ochandarena discusses a whole new way to think about your next...
CloudEXPO | DevOpsSUMMIT | DXWorldEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
Dynatrace is an application performance management software company with products for the information technology departments and digital business owners of medium and large businesses. Building the Future of Monitoring with Artificial Intelligence. Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more busine...
All in Mobile is a place where we continually maximize their impact by fostering understanding, empathy, insights, creativity and joy. They believe that a truly useful and desirable mobile app doesn't need the brightest idea or the most advanced technology. A great product begins with understanding people. It's easy to think that customers will love your app, but can you justify it? They make sure your final app is something that users truly want and need. The only way to do this is by ...
DXWorldEXPO LLC announced today that Big Data Federation to Exhibit at the 22nd International CloudEXPO, colocated with DevOpsSUMMIT and DXWorldEXPO, November 12-13, 2018 in New York City. Big Data Federation, Inc. develops and applies artificial intelligence to predict financial and economic events that matter. The company uncovers patterns and precise drivers of performance and outcomes with the aid of machine-learning algorithms, big data, and fundamental analysis. Their products are deployed...