There is a huge challenge in information security. The more secure a system is, the less usable it is likely to be and the less free people may be to innovate. This can also work in the reverse: more usability and more innovation can mean less security.
This tension exists in the world of digital banking. Banks are encouraging customers to do their online banking with confidence. But there is always the uncomfortable reality that when usability or innovation are the primary motivation, security can (dangerously) take a backseat.
According to a recent study by the international law firm Simmons & Simmons, over 70 per cent of the world’s largest banks and asset management firms see cybersecurity as the biggest risk associated with working with FinTech companies.
What’s clear in this study is that many large financial institutions are struggling to innovate fast enough to “keep up” with other digital leaders. The study findings show data security continues to be questionable, a challenge that needs to be overcome if banks are to feel confident partnering with FinTech companies.
The security risks are real. Cyber-attacks in the financial sector have tripled over the past five years, and the average cost of containment has increased by 40 per cent (Source).
What’s needed is a strategy. Financial institutions need a clear plan for remaining innovative and keeping their services user-friendly as they meet any and all compliance requirements for consumer security.
On May 7, join FINTRAC’s Compliance Manager, Relationship Management Stacey Hopps and Senior Compliance Officer, Relationship Manager Tammy Maheral for a regulatory update that will give financial institutions directions on how to meet compliance requirements for consumer security while promoting innovation.
This session will include overviews of recent regulatory amendments and the methods to verify the identity of an individual, as well as updates on the flexibility provided by FINTRAC as a result of COVID-19.