Page 15 - Banking Outlook 2014 - An Industry at a Pivot Point

Banking Outlook 2014: An Industry at a Pivot Point | 13

• Cyber security. Owing to the high value of their data, banks will always be a high-value target
for cyber criminals. Technological advances continue to push the cost of cyber attacks down,
which means banks must increase the resources they allocate to defending against them.
Adrienne Haden, an assistant director of banking supervision and regulation for the Federal
Reserve Board, notes that the cyber threat landscape has expanded to include not just fraud
but espionage, disruption of operations, and destruction of information. Cyber security will
14
become an even broader responsibility in the years ahead as banks, eager to expand their
offerings and boost efficiency, partner with third-party vendors and service providers whose
networks are connected in turn to other banks, subcontractors, and third parties—all boosting
the risk that an attack on one could morph into an attack on many. New technologies in mobile
and cloud computing also are upping the ante. Banks will need to respond to these spreading
threats on multiple fronts, building sound and secure IT infrastructures, to be sure, but also
vetting and monitoring vendors and other service providers for their own compliance with
security protocols. Human resources will need to be involved, too, performing background
checks on new hires and providing employees with ongoing training in the safeguarding of
digital information. Failure to maintain a robust cyber security profile could cripple efforts to
15
connect with customers and grow revenues. © 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in the U.S.A. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. NDPPS 227982