Many banks in the CE region regard new technologies as a key means of winning retail customers, and are working hard to adjust to changes arising from the continuous development of the Internet. Social media are continuing to permeate new business areas and the popularity of smartphones is opening up new opportunities for communicating with customers. Video conferences with key accounts have become popular in a number of countries.
All these and other areas are of crucial importance for proponents of new technologies. Their number will grow over time, when new generations of Internet users enter the market. Attempts undertaken in the banking sector to understand their needs will be a form of test as to whether the banks are able to operate in the “new world”. If they fail, they will be replaced by other entities that better understand the digital market place.
New technologies and new ways of working are driving business innovation and growth, but these expose the financial sector to new and emerging threats in the field of cyber threats. Although most cyberattacks don’t make national headlines, they can hurt a business in any number of ways, from simply vandalizing its website to shutting down networks, perpetrating fraud, and stealing intellectual property.
Cyberattacks can also deal a serious blow to a company’s brand and reputation, with potentially significant consequences. Financial Sector more than any other has been or is at risk of being compromised by cybercrime.
Because cyber threats are both a relatively new and constantly evolving source of risk, many organizations may not be as effective at managing cyber threat risk as they are at managing risk in other areas. The central issues for boards to consider are exposure and effectiveness: