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Inside magazine issue 12 | Part 01 - From a digital perspective<br />
In September 2014, an Indian Bank<br />
launched four new mobile banking apps,<br />
to boost the adoption of digital channels<br />
and to expand their presence in India’s<br />
rural areas. The new apps consist in a<br />
banking store, where customers can view<br />
and manage all their mobile banking apps;<br />
Insta Banking, which is used to cut the<br />
paperwork done in branch by letting the<br />
customer do it via their mobile in advance;<br />
video banking, which lets customers video<br />
chat with the bank at any time of the day<br />
or night; and mPassbook, which helps<br />
customers view their savings and credit<br />
cards on their mobile.<br />
8. Transforming cyber security threats<br />
into opportunities<br />
The traditional parameterized architecture<br />
was perfectly adequate for an organization<br />
that simply wanted to operate inside its<br />
own controlled environment, with email<br />
to the outside world. Today, this type of<br />
organization has almost ceased to exist<br />
because of the digital transformation:<br />
we now see wider connectivity to support<br />
sharing of sensitive information over the<br />
Internet (e.g., cloud computing) and IT<br />
consumerization (e.g., Bring Your Own<br />
Device). While developing digital strategy,<br />
and online partnerships with business<br />
partners, customers and suppliers,<br />
organizations must care<strong>full</strong>y consider the<br />
new threats and risks posed by the digital<br />
transformation and its related technology.<br />
Assets that were once physically protected<br />
are now accessible online; customer<br />
channels are vulnerable to disruption.<br />
Although mobile is the primary channel of<br />
next-generation customers, banks need to<br />
deliver a consistent digital so<strong>lu</strong>tion built across<br />
all channels (mobile, online, social, call center<br />
and branch). This would provide customers<br />
with an integrated view of their finances and<br />
a compelling user experience, using digital to<br />
increase customer engagement with the bank’s<br />
services. By interacting with customers in<br />
locations and channels they prefer, customer<br />
satisfaction and retention can be increased<br />
and key customer interaction data can be<br />
collected. Banks must also keep track of<br />
customer interactions across the different<br />
channels to ensure that the next interaction<br />
starts where the last interaction ended, which<br />
is the essence of the omni-channel principle.<br />
Personally identifiable information via<br />
mobile devices, facial recognition and<br />
biometric verification are the top strategies<br />
being tested by banks. A large British<br />
bank is implementing a heartbeat ID for<br />
online banking security. This revo<strong>lu</strong>tionary<br />
strategy in KYC is also being tested by<br />
several other global banks. By digitalizing<br />
their KYC and AML process, banks could<br />
vastly enhance security and trust, improve<br />
AML accuracy and transparency and also<br />
reduce the risk of errors in documentation<br />
and information storage.<br />
Among examples of recent trends,<br />
biometric security adoption is increasing<br />
and diversifying in the banking industry.<br />
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