As technology is advancing at such a rapid rate many financial institutions are looking to leverage technology for a range of uses, with particular focus on security and risk management.
With advancing technology comes advancing threats. Institutions must understand how technology can impact risk management, both from a threat and opportunity stand point. Technology, if not developed, implemented and monitored properly, can open an institution up to new vulnerabilities. With the evolution of technology and therefore threats, the legacy systems that many institutions still use must be updated in order to stay ahead.
Some of the key talking points across the industry are cybersecurity and resilience. Many institutions are looking to develop practices to improve cyber risk management and level the playing field between criminals and institutions.
Blockchain crops up frequently in this discussion, but most people in the industry have little understanding of it and even fewer are close to its application. Blockchain is traditionally known for its uses in transferring digital and crypto-currency, but there is increased focus on its potential in risk management and strengthening security. However, questions remain as to the regulatory standpoint on this; many are reluctant to invest without understanding regulatory implications.
Of course, blockchain is not the only technology being considered for fraud and financial crime detection - many are looking into how machine learning could be used to monitor customer activity and know your customer (KYC) better. Machine learning tools can be used to access data and recognise patterns that are undetected by humans.
Overall, it is an exciting time with new technologies providing new opportunities, product offerings and competitive advantages. The current disruption is not just between competitors though - many non-banks are entering the market through open banking, and fintechs and challenger banks continue to test the traditional role of banks. There is a lot to be done to leverage technology opportunities and further build the financial services industry to join the technology revolution. It remains unclear as to what the future bank looks like, but competition to keep up allows consumers to take full advantage of the available offerings.
Join the Center for Financial Professionals in Las Vegas for the inaugural X-Tech: Financial Services and Technology where speakers will discuss moving these technologies beyond theory, and look towards use cases, practical implementation and how you can take them back to your organisation. Can you afford not to be involved in the technological revolution?
Find full agenda information, speaker line up and event information.
Alice Kelly is the head of Research and Production at the Center for Financial Professionals (CeFPro)
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