Gabrielle Bugat, Head of G+D Mobile Security’s Financial Service Solutions discusses the importance of data security infrastructure.
Q. This has been a year of high‐profile data security breaches and scandals, as well as a year when regulators far more stringently applied the clamps to companies in terms of enhancing data security. Is there a sense that the public was losing trust in the industry to protect their data?
A. It’s a tough question, but it goes to the heart of what we at Giesecke+Devrient have been striving to create over 160 years. Our central goal is to ‘create confidence’ in governments and institutions that hold your data.
By 2021, there are expected to be 2.4 billion people worldwide using digital banking are digital payment solutions market is expected to triple its volume from $450 in 2017 to $1.3 billion in 2022. The willingness of people to embrace these solutions is there, but at the same time there were almost 2,000 major security attacks recorded in 2016 and almost any of these could put a significant dent in the industry.
The point is that banking services functions and the model they pursue is based on creating value by retaining the customer’s trust. Customers are keen to use these services, but they are also concerned about identity theft, malicious software and banking fraud, so ensuring they secure customer identities will be critical for the success of financial institutions.
Q. It is easy to see how a comparable hit to a bank’s data security reputation could lead to the demolition of even the biggest of banks.
A. Yes, when personal data seems insecure, it instantly becomes a business‐critical issue for any company, but this is especially true of banks whose core value is trust. Data breaches must not happen in such an industry. If your data are compromised, then the credibility of the service drops immediately. It’s a big disaster: it will explode on social media and the bank will go out of business.
Such incidents show how quickly trust can be destroyed and value wiped from a company
Gabrielle Bugat, Head of G+D Mobile Security’s Financial Services
Q. So, how are banks reacting to high profile data breaches?
A. At G+D Mobile Security we find we are increasingly drawn into conversations surrounding business data security. This is not only a reaction to different cases of data manipulation and breaches, but rather a continual development of this digital era with banks racing towards optimal risk‐free mobile banking. Under this model everything has to be reinvented and revisited, and the banks need to do that quickly. If they don’t, others will – which means a loss of competitive advantage in a fast‐evolving financial environment.
Banks are turning to us because we’re an international player and bring new ideas to the table. We’re no longer only a security player, we are a provider of business solutions.
Q. Is that a dramatic transformation for G+D Mobile Security?
A. Don’t get me wrong. Security remains a core focus of G+D Mobile Security. We have provisioned more than 2.3 billion EMV cards and issued over 1 billion contactless and dual interface cards over the past six years and manage 2.9 billion SIMs across the globe. We also have experience in the production of passports, identity solutions and e‐gate border control systems all‐around the globe.
However, with fraud following the banks’ transition into e‐commerce, we have been at the forefront of developing new forms of identification that are far safer – and more convenient – than traditional precursors. I am referring to the secure and seamless access to mobile financial services provided by biometric ID.
Q. What types of new business models are emerging within the industry? What challenges are up‐and‐young fintech firms posing for traditional banks and how should the banks respond?
A. Biometrics uses the analysis of unique personal characteristics, such as the way you walk and talk, to confirm your identity and this is the growing wave of future business.
A lot of the up‐and‐coming fintech companies are making great use of biometrics to deliver dramatic results in the new digital ecosystem. With them, you can basically open an account from your sofa on a Sunday afternoon in eight minutes.
You talk to someone in the call centre and they complete the onboarding using the identity card that you hold in front of your mobile device. Behind this convenience, however, is the sophisticated, multi‐layered frictionless process of identification that will later authorise the use of the payment card or allow you to make a transaction by app or social media.
This simplicity creates a dramatically new user experience as you literally feel and touch the brand incredibly early as a customer, which enables the bank to create a direct emotional link between the customer and the brand that has a value beyond trust. That is true especially for older users who are sceptical of mobile banking.
Traditional banks need to compete in this area by using such technology as likeness detection, which authenticates a transaction and make it much more secure than anything you could do with a PIN card. At G+D Mobile Security we believe that security can be built into both physical and digital transactions in new ways that have never been achieved before.
Twenty years ago, American Express produced the slogan, ‘just pay with your name’. Now that slogan could be updated to ‘just pay with a smile’ because it captures the essence of the transaction.
Q. How is this having an impact on the services of G+D Mobile Security?
A. As mentioned, we’re no longer only a security player, we are a provider of business solutions that improve the customer journey; breaking it down into each transaction or service and facilitating smooth, convenient and secure access. We are taking the industry lead in providing new technologies to ensure data security and in solutions that provide users with confidence in that data security.
Find out more here.