As many organizations tackle the challenges of “Digital Transformation,” each organization is presented with unique hurdles that they’re looking to overcome. Many of these challenges center on the attitude that consumers want to engage with organizations on any device, from everywhere, at any time AND in doing so they don’t want unnecessary “friction” along the way.
IBM Security helped eight major world-wide clients across the banking and insurance sectors recently with this digital transformation process. While the process is unique to each customer, the themes are similar as each organization wants “Digital Trust” when engaging with their customer.
Yes, “Digital Transformation” and “Digital Trust” are catchy terms in lingo today, but the principles behind the terms having meaningful value and business goals like:
- A need to provide a positive customer experience
- Strong business controls must achieve regulatory compliance
- Mitigation of overall risk
- Excellence in operational execution
It’s worthwhile to delve into these a little deeper.
A need to provide a positive customer experience…
Acquiring and onboarding new customers is very costly. So, once you have a customer it’s imperative that all attempts are made to retain them for life. Organizations are embracing the concept of “customer first” and requiring teams within firms to support the consumer expectation of “from anywhere, at any time, and any device.” Organizations are launching new products, features, and functionality at lightening speed to keep up with this consumer demand.
Strong business controls must achieve regulatory compliance…
In light of added oversight by regulators due to security breaches, consumer fraud attacks, and lack of oversight in some cases, firms are being forced to adopt risk-based authentication controls, fraud prevention / detection, and consumer outreach programs to achieve mandated regulatory compliance. While appeasement of regulatory compliance is important, organizations should also look to leverage the supporting technology for various use cases. Many times, new technologies decrease the burden on business rules, logic, and man-power supporting legacy systems. Here, a primary and secondary ROI can be captured to help justify organizational spend on a compliance need (requirement).
Mitigation of overall risk…
Risk mitigation is critical as fraudsters are looking to steal data, intellectual property, and in the case financial institutions / investment firms, money. The ability to prevent and detect these malicious attempts is constantly evolving. SaaS solutions are proving very valuable to tackle this challenge. Providers like IBM Trusteer are constantly monitoring the deployment footprint to uncover the leading indicators of a threat, then devising strategies to mitigate the risk, and deploying the update in real-time to protect entire customer base.
Excellence in operational execution…
Going to the functional category of “customer experience,” operational execution has a significant impact to that fundamental. Technology has to provide a clear-cut recommendation to allow access, authenticate, and alert where access is restricted or blocked. Threat intelligence and user insights are key to profiling the inherent risk level of the interaction with an organization. Keeping the end-user experience top of mind, it’s crucial not to over authenticate or alert. IBM Trusteer is able to leverage various sources of intelligence to provide a high accuracy with detection rates while producing lower than average industry false positives.
The dynamic and multiuse solution that was presented to the eight customers solved the objectives and offered capability for future use scenarios. Solving “Digital Trust” for one customer meant solving all the business goals above. A relatively new bank with a very unique and affluent customer base wished to launch a new online banking platform. The IBM Trusteer Platform solved the customer challenge by deploying a solution that provided passive risk-based authentication, mandatory detection controls for compliance requirements, robust fraud detection controls, and manageable alert rates that didn’t overwhelm the operational teams.
When tackling Digital Transformation, leaders need to ensure a full review of technology, controls, and process is completed to ensure full achievement of the business goal… Achieving the business goal will mean the hitting the wants of consumers; ultimately growing / retaining customers and ROI from the digital investment.