IBS Journal August 2017


EDITOR’S NOTE CYBER SECURITY IN THE ERA OF INTERNET FLUX


IN THIS ISSUE WE TACKLE THE PERENNIAL QUESTION OF CYBER SECURITY FROM THE FINTECH PERSPECTIVE. WE KNOW THE BANKS TAKE CYBER SECURITY SERIOUSLY, BUT IS CYBER SECURITY BAKED INTO THEIR CULTURE?


Senior Editor Bill Boyle


billb@ibsintelligence.com


05


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s the news feeds start to dry up during August and the bank and financial technology staff download beach blockbusters to fill their Kindles and tablets, we have a summer spectacular IBS Journal this August to cheer up all those left looking after the APIs and keeping the start-ups ticking over until the Fall.


The private banking sector looks as if it is still on a high as the steep fall in the value of the pound temporarily re-establishes London’s place in the hierarchy of those who see Brexit as an opportunity not a threat.


We take a look in this issue at cyber-security in our Feature Focus. We have involved some of the brightest and the most successful fintech cyber security specialists of the past 10 years on these pages to provide a clear analysis of how to prepare your organisation for the threats ahead. As the financial industry starts to digitise we have been keen to pick the brains of those who have left us secure and ask them what their recommendations are, rather than dwell on the indignities of those whose businesses lie in tatters after the bombshell that is a major data breach.


The banks in particular have to get it right this time. They will have to learn and implement many new ways to safeguard their data. Banks which have previously seriously lagged behind the curve of dynamic organisations such as travel agents, hotel chains and retailers, suddenly have to use all this data they have available while simultaneously safeguarding it as it travels around their new hybrid-cloud infrastructures. As the traditional banks start to partner with more and more new fintech start-ups they will have to start mining these hidden resources and using them, because their partners will not allow them to let all of this rich data lie fallow.


Data crops up again in our GDPR (General Data Protection Regulations) feature and shows us we should be worried if companies are not storing our information properly in an age of cyber theft. We will come back to the question of regulation and data security in later issues of the journal this year.


We also shine a light on a corner of the industry that normally hides itself well in the shadows, but which we have been examining anew – that of cyber insurance and just how do organisations choose what to protect in advance? This is often a complex tango between the chief information security officers and the chief executive officer in an attempt to discover an organisation’s real exposure to data breach or attack as opposed to its public relations façade of: “We are totally secure”. Often overlooked because it is a board-level call, cyber insurance is now a very real consideration with the possibility of having a huge effect on the profits of any bank in the event of a data breach, particularly in the light of the GDPR.


We carry a news analysis on page 46 about private data exchanges between businesses, which are expanding in the finance world. Soon more data traffic will be going through these than pass through the public internet, by a factor of nearly six by 2020. The Index forecasts the banking and insurance segment will be the largest consumer of interconnection bandwidth, as digitisation is forcing this industry to support new customer engagement models. Telecommunications is projected to be the second largest segment, the third largest segment is projected to be cloud and IT services.


And finally, we look at the emerging versions of the internet. The latest has to have its immune system hardened, says Jeff Hudson of Venafi, or we are all in big trouble. Enjoy the beach and watch out for tsunamis.


www.ibsintelligence.com


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