Security Focus Will Be Key to the Banking Future

US Stocks reported good growth this week after the tech giant Fortinet approached network security company International Business Machines Corp about a possible takeover. Shares for fellow network security company Sourcefire Inc. also bolstered stock trading on Wall Street. Both mergers indicate that the banking community is keen to seek security for a safer consumer future.

With advancements in technology, public awareness and ease of use, mobile, voice and web-based banking has now become a preferred mode of business rather than previous methods like over-the-counter and postal transactions. A Financial Committee feel security focus will be key to the banking future; they will meet at the FST US Summit at the start of the financial year.

2010 has not only brought high unemployment and slow economic growth but also a large increase in fraud. Today's cyber criminals have adopted more sophisticated methods to commit fraud and are exploiting financial vulnerabilities in the global payments system, often without detection. This is an enormous red flag for banks, as a successful attack on customers' accounts can hinder business, trust and reputation. Therefore it is imperative for banks and financial institutions to implement superior security management programs in order to decrease both external and internal risks and minimize vulnerability of their systems.

The United States has had a continuing reliance on credit and debit cards that store unencrypted information on a magnetic stripe, which has made them a prime target for hackers and cyber criminals.

Representatives from Citigroup - Raymond Lipps, SVP Group Information Security Officer, ING Group - Alan Boehme, SVP and Head of IT Strategy and Enterprise Architecture, Bank of America - Brad Mattocks, SVP Global Technology Strategy & Architecture, Nasdaq OMX Group - Mats Andersson, CTO and Guardian Life Insurance - Frank Wander, SVP and CIO were quoted: "Most of the developed world, including China, Indonesia, Saudi Arabia, Mexico and Canada is switching to bank cards that have embedded smart chips with account data in an encrypted form."

The end goal of all IT projects should be in the customer's best interest. From comprehensive document management, integrating customer data and enacting security policies and measures that assure data protection and privacy, the CIO's role in customer acquisition and retention is crucial.

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