Challenges Financial Institutions Face in Responding to Fraud Attacks
The challenge for financial institutions, as they try to keep pace with escalating attacks, is that they have to make business cases to deploy new technology. It can take 18-24 months to deploy a net new vendor to address an emergent fraud problem. By the time you get through that, the fraud has moved on and it's radically changed. Accelerating that process and figuring out how to be more nimble is one of the biggest challenges I hear.
'Moving faster' is one of the toughest things to do. If you're a heavily regulated institution, you have certain boxes to check, and because you’re part of this enormous organization with competing priorities for IT resources, you can't be as nimble as some of the Fintechs out there
One of the technologies I do see a lot of institutions looking toward is the concept of a fraud or authentication hub; where you can go to one vendor with one API call and get access to multiple types of detection and authentication technologies in the back-end, with a unifying risk engine that can help you bring those into an aggregated score.
We did a survey at the end of 2018, asking financial institutions about their plans to invest in these technologies. Eighteen percent already had implementations under way and another 52% had it on their one to two-year road map. This represents a big sea change from just two years ago, when we asked a similar group the same question. And at that point, less than 20% were planning to implement these technologies. We're seeing a lot of banks turn to these as a technology that can help them get more nimble.