Bank Boards Need to be Younger, More Diverse and More Visionary


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I was chairing a conference recently at which a Gartner Group consultant talked about the firm’s annual bank survey. Gartner found that of the senior bankers it surveyed, 76 percent don’t believe that digitalization will affect their business model.

I can tell you that 76 percent of those survey respondents were wrong. Of course digitalization is affecting the business model, and if you don’t think it is then you need to read my blogs about platformification; back office overhaul through the cloud and machine learning; the impact of shared databases through blockchain; the rapid cycle change of microservices organizations; and the rise of innovation economies in Africa and growth economies like China’s.

In fact, I would be amazed if any banker who reads my blog could honestly say that digitalization doesn’t change their business model. After all, the business model of traditional banks was built for face-to-face interactions backed up by paper documentation; the business model of digital banks is for device-to-device interactions backed up by data. The two are completely different.

It doesn’t worry me that bankers think their banks business models don’t need to change—after all, banks are run by bankers and it’s their problem if they believe otherwise—but it does worry me that people in charge of systemically important institutions that are so important to so many aspects of our lives could be so ignorant. I think it reflects the lack of insight into how digital transformation is impacting the world, and also the lack of balance in bank boardrooms.

This was evidenced by a recent Accenture analysisof the boardrooms of the 100 biggest banks in the world, which shows that:

  • Only 6 percent of board members have professional technology backgrounds.
  • Just 3 percent of these banks have CEOs with professional technology backgrounds.
  • Forty-three percent of the banks analyzed don’t have any board members with professional technology backgrounds.
  • Thirty percent of these banks have only one board member with a professional technology background.
  • In North American banks, 12 percent of board members have professional technology experience, compared with 5 percent in both European and Asian banks.
  • Though boards of banks in the United States and the United Kingdom have higher percentages of directors with professional technology experience than others, the numbers are still low—at 16 percent in the U.S. and 14 percent in the U.K.

Banks are led by bankers even though banks are actually fintech companies—even if they don’t yet realize that. That is the fatal flaw here, as fintech firms are led by a combination of technologists and bankers. Most fintech firms I meet have a healthy balance of young, bright technology experts and seasoned financial people.

That is why it’s interesting to see that the biggest banks are gradually reconstructing their boardrooms for more balance, or sothis year’s trendspredicted. When I think of a bank boardroom, I picture a lot ofold menin suits (andthe numbersprove this). When I think of a fintech firm’s boardroom, I see something that is young, diverse and visionary. It does have some old hands on board, but it’s balanced. So what I really expect in the next decade is to see a bank boardroom become just a little bit more awesome. Still a bit grey, but also a little younger, more diverse and a healthy mix and balance of financial acumen and technology vision. Please.

Gaining a Digital Competitive Advantage



The average small business owner uses technology every day to run the enterprise—and the same is expected of the financial institution, explains Chris Rentner of Akouba Credit. Banks that adopt technology will have a competitive edge in the market.

  • Why Banks Should Explore Fintech Partnerships
  • What Small Business Customers Expect From Their Bank

Improving Workflow Saves Time and Money


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Progressive banks add new features and functionalities on a regular basis. Most can attest to a long technology wish list, but bankers and their technology partners must be careful not to lose sight of what’s most important: the employee and customer experience. The multitude of disparate departments, systems and protocols that drive banks can be intricately interwoven and inherently inefficient. Standard workflows can involve the shuffling of paper and manual data entry, passing responsibility back and forth between numerous divisions with a general lack of ownership that creates longer turnaround and service times.

In an environment where bankers are regularly challenged to do more with less, improving workflows can be a goldmine for process efficiencies, regaining resources and creating an optimal user experience. Too often, banks just continue to hire staff to run redundant, menial processes, which only serves to put a band aid on the problem while still absorbing an inordinate amount of time and resources. The problem compounds as banks grow larger in size and are faced with scaling and combining already burdensome procedures.

Banks and vendors alike must consider new approaches to how they’ve done things in the past and address these inefficiencies. Most procedures that involve multiple steps, departments and systems can be streamlined into a simpler, expedited process. Think about the implications here: streamlining and automating the viewing, refiling, printing and indexing of documents for a bank with approximately 40,000 actions each month would save employees dozens of work hours a month, translating into tens of thousands of dollars in annual cost savings.

There are many practices banks can easily adapt for efficiency gains. The first step is to evaluate current processes with a careful eye for redundancies and bottlenecks. You can’t fix what you don’t know is broken, so begin by identifying the problems and determining their cause. During this step, it’s important to consult employees from all areas of the bank to gain sight of the bigger picture.

Next, prioritize where to focus first. Starting with a few targeted projects will give you a firm understanding of how to create and implement proper workflows, straightening out any kinks and asking any questions before tackling larger and more numerous projects. Workflows can be applied to nearly every area of banking, so it’s important to have a strategy in place or it may become overwhelming.

The Bank of Missouri, headquartered in Perryville, Missouri, recently teamed with Jack Henry Banking, its core technology provider, to transform its internal processes with a workflow solution. The bank recently surpassed $1.3 billion in assets in just six years through both acquisitions and organic growth. Its branch infrastructure also increased from 13 to 23 (soon to be 26) locations. This growth and merger of cultures came with some inevitable growing pains, most notably the need to standardize processes and optimize efficiency.

The Bank of Missouri worked closely with Jack Henry to automate arduous multi-step processes, both internal and customer facing. Its goal was to significantly improve its efficiency ratio and make a positive contribution to the bottom line by creating consistent, cost effective processes that reduce operational risk and unnecessary expense.

After taking the time to learn how to identify problem areas and create appropriate workflow solutions, The Bank of Missouri now has 17 workflows in production, enabling it to eliminate redundant data entry, boost visibility and streamline processes across several areas of the institution, including HR, IT, deposit operations, loans, retail and more.

An example of the bank’s success is how it transformed the deposit fee refund process. Front office staff had to print, manually fill out and scan documents before the reversal process was performed by back office staff who also imaged and indexed the document, consuming a large amount of time and manual effort. With its workflow solution, multiple steps and searches are now automated and approved. This workflow alone is currently saving the bank approximately 54 hours and $1,000 per month, yielding an annual savings of $12,000.

In addition to creating unrealized efficiencies, leveraging a workflow solution can also allow banks to channel resources that were previously spent on burdensome tasks into more strategic and customer facing activities. When bank employees are empowered to add and cultivate skillsets, they’re more likely to feel valued and stay with their institution longer. Returns such as this can prove to be indispensable for any well run financial institution.

Dedicating just a small portion of resources to improving the back office can make a monumental impact. If the only reason for your processes is history, they may be outdated. Revamping workflows to streamline procedures and optimize efficiency is an integral component of any modern and progressive bank.

Chris Congiardo, systems analyst manager for The Bank of Missouri, is theco-author of this piece.

Innovation Spotlight: BankWest Community Bank


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Vincent Tyson
Deposit Accounts Manager, BankWest

Vincent Tyson oversees deposit generation and retention for the South Dakota-based bank, including product development and process changes. He works closely with branch managers, the regional president and CFO on rate changes and deposit pricing. In this interview, he discusses the practical dynamics of staying relevant and assessing customer needs outside of the traditional bank environment.

How have you been able to stay innovative at BankWest?
We have a dedicated project team that works with our vendors to integrate vendor solutions into our product mix when we believe that our markets are ready for it. We aren’t bleeding edge, but sometimes we will be first in our markets. For a South Dakota bank, we’ve been able to stay innovative with the remote solutions we offer our customers. With such a large agricultural customer base, our products and services need to be in the fields, barns and on the ranches where our customers are. Despite our 127-year history, our innovation is the ability to remain relevant in our customers’ lives, no matter where they work, live or play.

When it comes to implementing a fintech solution, would you rather buy, build or partner?
At this point, we’d rather partner. We’re not big enough to buy and don’t have enough resources to build. Like most banks of our size ($1 billion in assets), we prefer to —buy in’ to new technology and roll it out as part of another service/sales channel. Investing too heavily could be dangerous, and bringing in resources for development could be hit and miss.

As consumer expectations in banking change, how do you stay engaged with this audience?
Lots of research, especially among our existing customers. We also invest heavily in staff education, keeping key personnel up to date with relevant technology and making sure all of our staff members are trained and ready to launch new technology as it becomes available. South Dakotans tend to be up-front with their needs, vocal about their opinions and pretty focused on where they see value from their bank. We make sure that we hear their voices by keeping in touch, making sure that we are in the places where our future customers are learning and asking our existing base what they’ll need tomorrow. This is done through engaging face-to-face meetings, either in our branch network or out at the customer’s property or place of work. We have many touch points, as well as surveys that allow us to track trends and focus resources where needed.

Fintech Intelligence Report: Marketplace Lending


	intelligence-report-cover.PNGAs noted throughout our 2017 Acquire or Be Acquired Conference, partnerships between a bank and a tech company can take on many forms — largely based on an institution’s available capital, risk appetite and lending goals. With fintech solutions gaining momentum, many advisors at this year’s event encouraged banks to look at viable alternatives to meet consumer demands, maintain and expand their lending revenue and give formidable competition to those looking to take that market share.

Fintech lending has grown from $12 billion in 2014 to $23.2 billion in 2015 and is expected to reach $36.7 billion in 2016, a year-over-year growth of 93 percent and 58 percent in 2015 and 2016. This market, according to Morgan Stanley Research, is expected to grow further and reach $122 billion by 2020.

With this in mind, we invite you to take a look at our new Fintech Intelligence Report on Marketplace Lending. The research paper, developed by FinXTech, a division of Bank Director, and MEDICI, a subscription-based offering from LetsTalkPayments.com, explores current market dynamics along with technology and partnership models. As noted in this report, the gains of new fintech companies were widely thought to be at the expense of banks; however, many banks recognize the potential value from collaboration and have built relationships with fintechs.

Tell us what you think! As we work to provide you the latest information and research as it pertains to the financial services industry, we would appreciate your feedback on the Fintech Intelligence Report. Please email us your comments and/or suggestions at news@finxtech.com.

Community Banks to Fintech: We Need You


fintech-2-1-17.pngWhen Terry Earley, the chief financial officer of Yadkin Bank, a $7.5 billion asset bank in Raleigh, North Carolina, gets to work each morning, he sees an online dashboard showing him all the details of the loans in his bank’s pipeline, what is closing and when, and more. “If you don’t know the information, you can’t manage your company,’’ he says.

Upgrading from cumbersome Excel spreadsheets, he can easily see which lenders are pricing loans lower than others, and quickly react in terms of lender training and managing the bank’s loan portfolio. “A lot of times we try to manage [by] anecdote,’’ he says. “But what does the data tell you? The information is key.”

Like a lot of other community banks, Yadkin is increasingly using partnerships with technology companies to improve its operations and better meet customer needs. At Bank Director’s Acquire or Be Acquired Conference in Phoenix, Arizona, which wrapped up yesterday, Earley and other bankers talked about M&A and growth strategies, as well as how they were using technology to improve profitability and efficiency. In Yadkin’s case, the bank signed up with PrecisionLender, a pricing and profitability management platform, when it became a $1 billion bank several years ago. Then, it partnered with technology company nCino, which operates a secure cloud-based operating system, when it became a $4.5 billion bank, to get access to a quicker commercial lending origination platform. [For more on how banks are using the cloud, see Bank Director digital magazine’s Tech Issue story, “Banks Sail Straight Into the Cloud.”]

Even investors are getting excited about the plethora of off-the-shelf software available to help smaller banks become more competitive with larger institutions. Joshua Siegel, CEO of asset manager StoneCastle Partners, said he thinks banks have a lot of room to improve efficiencies with technology and take out back office costs, as well as offer better customer service. The software to do this is becoming increasingly available and affordable to do so. Siegel was happy to see banks as small as $150 million in assets offering online personal financial management tools superior to what regional banks are offering, because the regional banks are sometimes held up trying to develop their own software in-house.

While some financial technology companies are directly competing with banks for small business loans or payments, such as payments provider PayPal or online lender Kabbage, other financial technology companies want to sell their technology to banks.

Instead of only seeing the potential threats, there are reasons for the industry to see financial technology as a tool that can help them compete with bigger banks, which control most of the nation’s deposits. Small banks can use software to speed up their lending operations and the time it takes to open an account, and make the entire experience of doing business with a bank easier and simpler.

Somerset Trust Co. in Somerset, Pennsylvania, is using a fintech company called Bolts Technologies to quickly validate identities and open accounts for new customers. Radius Bank, a $1 billion asset bank in Boston, Massachusetts, is using a variety of partnerships with fintech companies to support its branchless bank, including a robo-advisor software company called Aspiration.

“From a cultural perspective, we look at whether they share our values,’’ said Radius Bank CEO Mike Butler. “It needs to be true partnership. If we’re just in it to try to make money off each other, then it’s not worth it. But if there is a benefit in terms of both of us wanting to create a better customer experience, then you have a great partnership.”

Do Bank Management Teams Need to Change?


technology-1-31-17.pngU.S. Bancorp’s retiring CEO Richard Davis said that just before walking on stage at Bank Director’s Acquire or Be Acquired Conference in Phoenix, Arizona, yesterday to give the keynote address, he had to check President Donald Trump’s twitter feed to make sure nothing had fundamentally changed about the banking landscape.

In a world when the president can change the rules of the game with a single tweet, sending a company’s stock price soaring or sinking in a single chirp, and where customer demands are changing in the face of game-changing technology, the management teams of the future may need to be nimbler than they might have imagined a decade ago.

Keeping up an environment like this is hard to do. But a growing recognition among many attending the conference was that banks were going to have to get more agile and accept changes to the way they do business.

Huntington Bancshares’ CEO Stephen Steinour said at the conference that he’s less worried about 10,000 fintech companies than by technology giants such as Apple and Google. “They have a capacity to invest at a level most of us in the industry can’t think about,’’ he said. “If we give up on payments, we have a huge challenge in the future.” Steinour said that online lenders have technology that banks can learn from. “Speed is important,’’ he said. “We are eminently capable of meeting those challenges and offering great customer service.”

Joshua Siegel, CEO of asset manager StoneCastle Partners, which invests in community banks, agreed that banks are probably more resilient than many people give them credit for. But he said that many banks have been slow to adopt technology and management teams are often a barrier to making changes.

U.S. Bancorp’s Davis said boards can have a role in this transition, by keeping up with changes in the industry and holding management accountable. Small banks have traditionally lagged big banks by a few years in terms of adopting technology, but in some cases this will no longer work, he said. “You can’t be OK with catching up two to three years later,’’ Davis said. “You can’t lag anymore.”

Some banks also are looking to hire workers who are comfortable with change, who are more comfortable with technology and could propel the bank forward. “We tell them the one constant here is change,’’ said David Becker, the president and CEO of the First Internet Bank of Indiana. “If you are uncomfortable with that, don’t waste your time or ours.”

But bank management teams might need to change how they operate, too. Younger generations are more racially and ethnically diverse, and they are more focused on having a career with a purpose, and more likely to leave when don’t feel their needs are met. Young people might be more receptive to banks as employers, despite the poor reputation banks received following the financial crisis, if they feel that banks are making a positive impact on their communities. Getting better at telling the story of how banks make a positive contribution to their economies is another way that bank management teams could influence the future of their institutions, Davis said.

Aside from being comfortable with a diverse workforce, Davis said he polled the executive team of the Minneapolis-based bank in terms of what they were looking for in future C-suite executives, and they came to the conclusion that a whole different set of qualities would be needed than what had been needed nine years ago. Back then, strategic thinking skills were a major requirement. Now, his bank also needs managers who are great communicators.

If you can’t sell your story, nobody cares,’’ he said. His bank is looking for highly ethical people who are lifelong learners, and are curious. “Do you care? Do you look forward to making a difference? Or do you just accept things?’’ he asked. “Well in that case, go away, because the world is curious now.”

Combating Identity Fraud Through Biometrics


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The Know Your Customer (KYC) process, which is the identification and verification of a bank’s clients in order to understand and better manage risks, is a central requirement of the federal anti-money laundering regulations. Today, technologies such as mobile and biometrics have a strong impact on the redesign and digitization of the registration process, significantly improving operational efficiency and customer satisfaction.

A range of financial institutions have been exploring opportunities through biometrics in one capacity or another, but in most cases employ biometrics for identification and authentication purposes for existing accounts, aimed at making passwords obsolete once and all. With increasing multipurpose adoption, by 2021 the market will reach a value of $30 billion with its primary revenues shifting from the government sector to banking and consumer electronics.

Experts from M2SYS, a biometric identity management technology provider, suggest that as more banks and financial institutions begin to augment their customer identification security policies, the evaluation of using biometrics for KYC management will increase rapidly.

The use of biometric identification management technology for accurate customer identity verification has proven to deliver efficiency and convenience for organizations that have adopted it. The technology also helps comply with government regulations to prevent identity theft and money laundering. Due to inefficient KYC management, nearly 9 million Americans are victimized each year, costing consumers $5 billion, and banks and corporations $56 billion, annually.

Industry expert David Benini, vice president of marketing at Aware, a biometric software developer, wrote recently that “More than just —something we are,’ biometrics allow us to permanently bind ourselves physically to digital information; a powerful capability that enables us to not only biometrically authenticate, but also to biometrically deduplicate.” The idea behind biometric KYC management is quite simple–instead of the customer being required to present official identifying documents in person upon application, a biometric-based search can eliminate the need for a lengthy check with additional tapping into public and private records to ensure the absence of copy records.

Biometrics allow banks to be sure that a particular person does not exist in the database with different data. Benini emphasizes that the power of the idea behind biometric identity proofing rests in the ability to combat identity theft at its source by ensuring the integrity of identity data at the point of enrollment.

Given its unique properties, biometric-based KYC management in the financial services industry enables institutions to speed up the customer verification process without compromising the accuracy. Implementation of biometric KYC management solutions can ensure higher accuracy and efficiency, eliminating the risk of financial fraud and its legal and financial consequences for consumers and organizations.

The critical benefits of transitioning to biometric KYC management include:

Enhanced Operational Efficiency
KYC management has traditionally been a resource-consuming process requiring time and manpower (hence, substantial financial expenditure) to verify a person’s identity, since KYC compliance involves a tedious process of verifying the customer’s original documents of proof of identity and proof of address in person, among other things. Biometric KYC cuts corners without compromising accuracy and security, as biometrics carry unique and arguably impossible-to-forge information and are permanently tied to one’s records.

Improved Cost-efficiency
There are a couple of ways biometric KYC management saves money for financial institutions: reduced time to verify information about the person, and as a result of increased accuracy, reduced expenses on fixing issues that appear as a result of inefficient KYC procedures. It takes an average of $1,173 and 175 hours to clean up one’s credit report and associated complications, and when you multiply that times the vast customer base of a medium-sized bank (not to mention much larger banks), it’s obvious that biometric KYC can become a real cost saver, facilitating a better allocation of resources.

Greater Security
Today, biometric-focused technology and software has reached a level of sophistication where providers can ensure higher levels of protection against identity fraud and all compliance consequences because of it. Behaviometrics are the last word in secure identity verification, bringing together machine learning and continuous tracking of user behavior. A separate class of companies is delivering biometric-focused anti-fraud solutions, including NuData Security, BioCatch, BehavioSec and AimBrain.

Gains in Convenience and Customer Satisfaction
The speed of identity verification affects overall customer satisfaction and is more convenient since it ensures an easier and more efficient user experience. And an enhanced customer experience translates into a better reputation and higher customer retention.

Organizations that aim to keep up with the latest technological advancements for efficient KYC management cannot miss out on the application of biometric-based solutions. Today, there is no lack in technology companies powering biometric KYC management through sophisticated software and biometrics screening technology. Recognized leaders include Daon, EyeVerify Qualcomm, with such companies as BioConnect, M2SYS, HooYu, Aware, Hoyos Labs, ID Global, Socure, physiSECURE and many more comprising an expanding list.

Departing Administration Leaves Gift of Fintech Principles


fintech-1-16-17.pngIt may strike some as odd that President Barack Obama’s National Economic Council just published a “Framework for FinTech” paper on administration policy just before departing, but having been a part of several conversations that helped to shape this policy perspective, I see it from a much different angle. Given that traditional financial institutions are increasingly investing resources in innovation along with the challenges facing many regulatory bodies to keep pace with the fast-moving fintech sector, I see this as a pragmatic attempt to provide the incoming administration with ideas upon which to build while making note of current issues. Indeed, we all must appreciate that technology isn’t just changing the financial services industry, it’s changing the way consumers and business owners relate to their finances—and the way institutions function in our financial system.

The Special Assistant to the President for Economic Policy Adrienne Harris and Alex Zerden, a presidential management fellow, wrote a blog that describes the outline of the paper.

I agree with their assertion that fintech has tremendous potential to revolutionize access to financial services, improve the functioning of the financial system, and promote economic growth. Accordingly, as the fabric of the financial industry continues to evolve, three points from this white paper strike me as especially important:

  • In order for the U.S. financial system to remain competitive in the global economy, the United States must continue to prioritize consumer protection, safety and soundness, while also continuing to lead in innovation. Such leadership requires fostering innovation in financial services, whether from incumbent institutions or fintech start-ups, while also protecting consumers and being mindful of other potential risks.
  • Fintech companies, financial institutions, and government authorities should consistently engage with one another  . . .  [indeed] close collaboration potentially could accelerate innovation and commercialization by surfacing issues sooner or highlighting problems awaiting technological solutions. Such engagement has the potential to add value for consumers, industry and the broader economy.
  • As the financial sector changes, policymakers and regulators must seek to understand the different benefits of and risks posed by fintech innovations . . .  While new and untested innovations may increase efficiency and have economic benefits, they potentially could pose risks to the existing financial infrastructure and be detrimental to financial stability if their risks are not understood and proactively managed.

A product of ongoing public-private cooperation, I see this just-released whitepaper as a potential roadmap for future collaboration. In fact, as the fintech ecosystem continues to evolve, this statement of principles could serve as a resource to guide the development of smart, pragmatic and innovative cross-sector engagement much like then-outgoing president Bill Clinton’s “Framework for Global Electronic Commerce” did for internet technology companies some 16 years ago.

Cybersecurity Governance: How to Protect the Bank


cybersecurity-12-23-16.pngModern banking increasingly relies upon technology and the internet to manage and streamline business operations. With increased dependence on technology comes an increased risk of security threats. Kaspersky Lab reported it had detected 323,000 malware files per day using its software in 2016. This number is 4 percent higher than in 2015.

The impact of a successful cyberattack is often quite damaging: legal liabilities, brand reputation, lack of trust from customers and partners, and ultimately, revenue. The average cost of a data breach is now up to $4 million, according to a 2016 Ponemon study.

Banks are responsible for more data than ever and as data use continues to grow, banks face the challenge of properly creating strategies, frameworks and policies for keeping sensitive data secure. Meanwhile, criminals develop new and sophisticated tactics to target valuable data.

Security is, and should be, a concern for all employees. However, leadership must be responsible for establishing and maintaining a framework for information security governance. Information security governance is defined as a subset of enterprise governance that provides strategic direction, ensures objectives are achieved, and manages risks while monitoring the success or failure of the IT security program.

Whether it is the board of directors, executive management or a steering committee that is involved—or all of these—information security governance requires strategic planning and decision-making.

Best Practices
Despite the threats of cyberattacks and data breaches, banks can take proactive steps to better position themselves for successful security governance. What follows are five strategic best practices for information security governance:

1. Take a holistic approach.
Security strategy is about aligning and connecting with business and IT objectives. A holistic approach can provide leadership with more levels of control and visibility.

What data needs to be protected? Where are the risks? Take a unified view of how information security impacts your organization and how employees view security. Get early buy-in from key stakeholders, such as those in the IT, sales, marketing, operations and legal departments. Scope out what data needs to be protected and how that fits into the larger picture.

2. Increase awareness and training.
Although developed by leadership, information security governance speaks to all employees within the organization and requires continued level of awareness. Governance creates policies and assigns accountabilities, but each member is responsible for following the security standards.

Constant training and education on security best practices is vital. The cyberthreat landscape is rapidly changing and employees, and company training, must keep up. This way, if new threats emerge, you will be prepared.

3. Monitor and measure.
Information security governance should never have a “set it, then forget it” approach. It’s about ongoing assessment and measuring. Monitoring ensures that objectives are being achieved and resources are appropriately managed. What security governance policies are working? Which policies are not?

Conduct mock data breach scenarios to test the efficacy of corporate teams and company incident response plans. Test results can reveal strong and weak links—what the bank needs to concentrate on, and what security governance policies work well under pressure.

4. Foster open communication.
Stakeholders should feel they can openly communicate directly with leadership, even when sharing bad news. Open communication promotes trust and brings a higher level of visibility throughout. Engagement is key. Consider creating a steering committee comprised of executive management and key team leads (IT, marketing, finance, PR, legal, operations, etc.) to review and assess current security risks.

5. Promote agility and adaptability.
Gone are the days of monolithic, cumbersome governance; banks need to adapt quickly to meet the changing tide of security threats. IT management, which is typically concerned with making tactical decisions to mitigate security risks, might have some hands-on experience and opinions about the effectiveness of a particular security policy, but their recommendations can only go so far without C-suite support. Leadership must quickly determine how to implement suggested changes throughout the bank. And if a security governance policy is ineffective, leadership must be willing to jettison the policy.

Overall, successful information security governance involves a continuous process of learning, revising and adapting. Banks need to be proactive and strategic with their security posture. Threats and incidents are inevitable, but moving strategic security governance to the forefront of your organization can help protect valuable information.

Download the full Diligent white paper: Five Best Practices for Information Security Governance.