security determines trust as well as experience

First, there was the announcement that cybercriminals had skimmed onearly a billion dollars from a 100 banks in 30 countries over a period of two years. Then, there was a series of data breaches at some very technologically-savvy banks. The threat to cyber-security is the ip side of increasing digitization. As the number of digital touchpoints expand and the banking ecosystem opens up to more partners and services, the threat situation will only worsen.

But this will not turn customers away from digital banking back to the branch. Customers will increasingly look for nancial institutions they can trust with their nancial data. This means that – soon – a bank’s digital security credentials could be leveraged as a competitive dierentiator.

For the banking industry, the biggest challenge would be to deploy robust threat protection technologies and strategies without compromising experience. Banks are exploring new possibilities to achieve that balance. For instance, Halifax, UK, is testing electronic wristbands that use a customer’s unique heart rate to authenticate digital transactions. Barclay’s is also expected to roll out a voice-biometrics system to its 12 million retail customers. The new system will apparently cut identity verication time from 90 seconds to less than 10 seconds. In Brazil, Banco Bradesco Cartoes, is introducing ngerprint-based biometric authentication at its ATMs. Many banks are also experimenting with technologies like Blockchain to improve the security of digital transactions.

So, in the year ahead, we believe that all progressive banks should focus on incorporating these values into their business strategies in order to create a truly digital banking model.

But concurrently, they also need to keep their focus on the technologies, some new and some evolutionary, that have the potential to redefine banking in 2016. We believe the five technologies that banks will have to watch out for in 2016 will be Blockchain, Internet of Everything, cloud services, open banking, and mobility and wearables.