With some exceptions, many recent technology investments in the banking industry have perforce been centered on regulatory compliance and risk controls. However, one area that has received its fair share of attention is mobile banking.18 Even so, one might argue that the mobilization of banking up to this point has only been incremental.
On the other hand, core banking transformation, until recently, did not receive the attention it deserved as many banks had been too fixated on regulatory and other challenges to embrace large-scale, multiyear core banking transformation projects. In the area of big data and analytics, while many banks have enhanced their capabilities, leveraging these investments for real-time decision-making and delivering superior customer experience still remains out of reach for most banks.
But amidst all these developments, there remains a real concern about various technology risks. Given the increasing reliance on technology, inaccurate data, inconsistent reporting, and system glitches have the ability to quickly disrupt a bank’s operations, strategy, and reputation. Further, the increasing sophistication of cyberattacks, including the fraud and operational risks they pose, has become a top concern of banks and regulators