Security in Retail Banking (Review Report)

Published by: Datamonitor

Published: Jun. 29, 2007 - 52 Pages

Table of Contents

Overview

Catalyst

Summary

Methodology

Executive Summary

Introduction

Facing up to the security challenge in retail banking (Market Focus)

Security initiatives in retail banking (Strategy Focus)

The role of technology in retail banking security (Technology Focus)

Security in Retail Banking (Databook)

Table of Contents

Table of figures

Table of tables

Facing up to the security challenge in retail banking (Market Focus)

Summary

Bank security and fraud are becoming an increasingly high profile issue

Anything other than perfect security is a failure...

...But banks are facing a barrage of security threats from all sides

Negative publicity is a major concern for retail banks...

...However, there is no smoke without fire

The perception of security differs by channel, but customer reactions are complex

The increased level of automation is opening banks up to attacks from across the globe

Automation and the internet enables access to bank systems from across the world...

... However, automation also enables more effective fraud detection analytics

Banks want customers to use direct banking channels

However, non-IT based threats remain just as critical

Security breaches can happen without any help from fraudsters

Gathering sufficient data to commit third party fraud/identity theft does not require IT literacy

Customers can unwittingly compromise themselves, being tricked into disclosing security details

Internal employees can prove a security hazard, whether intentionally or not

Regulations are driving towards formal security standards

Regulations are having a direct impact on security initiatives

Wider banking regulations will also impact security

Security initiatives in retail banking (Strategy Focus)

Summary

Banks must address the security challenges that culture and infrastructure create

Banks face unique authentication challenges in each country due to both cultural and infrastructure factors

Banks must be able to operate securely in accordance with the regulatory environment

Security issues facing banks are often dependent on the size of the institution

Banks must tackle the authentication challenge at the customer/channel interface

The password burden builds up quickly particularly for direct banking customers

Online payments can also add to the volume of passwords customers must contend with

The password burden is beginning to have an impact on the customer experience

A multi-channel authentication solution is becoming increasingly desirable

Additional security layers can be used as a differentiation strategy

Customer segmentation

Institutions must tighten control over identity management and internal security

Internal fraud risk

Staffing practices and access must be managed

Data and systems access must be tightly controlled and monitored

Banks need to move beyond authentication to proactive detection across all security types

It is not enough for banks to rely on strong authentication

Multiple security standards across bank operations must be leveled

The implications of data leaks are growing as customers take data confidentiality increasingly seriously

Unplanned channel downtime undermines the bank's offering

The role of technology in retail banking security (Technology Focus)

Summary

IT security across the enterprise must provide the base of the bank's security operations

Banks need to ensure that they have the basics of network and data security covered

Security must be a key element of business continuity planning

Security needs to be built into data storage and information lifecycle management

Identity management must be extended as a single solution across all channels

Device management ensures that offline data is adequately protected

Banks must control the four main elements of identity and access management

Single sign-on will facilitate a strong, more cost efficient identity management system

Investments in multi-factor authentication will help banks reduce fraudulent attacks

Using multiple factors of authentication helps banks ensure they control access

Something I know

Something I have

Something I am

Authentication analytics are a critical part of the authorization process

Reverse authentication adds certainty for the end user

End user education is an important piece of the picture

Different factors of authentication will be suitable in different circumstances

Multifactor authentication has its limitations

Initial customer identification is critical to both identity management and authentication

Standardization, automation and analytics will be the key to strong bank-wide security

Security analytics need to be carried out across the entire enterprise

In order to pave the way for joined up security across the enterprise, banks must standardize

Banks need to consolidate their security operations to tackle both fraud and regulatory requirements

Security in European Retail Banking (Databook)

Introduction

European security IT spend by country, 2006 - 2010

European security IT spend by source, 2006 - 2010

European security IT spend by technology product, 2006 - 2010

European identity and access management IT spend by country, 2006 - 2010

Security in North American Retail Banking (Databook)

Introduction

North American security IT spend by country, 2006 - 2010

North American security IT spend by source, 2006 - 2010

North American security IT spend by technology product, 2006 - 2010

North American identity and access management IT spend by country, 2006 - 2010

APPENDIX

Definitions

Secure content management

Identity and access management

Security & Vulnerability management

Firewall & VPN

Intrusion detection and prevention

Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

List of Tables

Table 1: European security IT spend by country, 2006 - 2010

Table 2: European security IT spend by source, 2006 - 2010

Table 3: European security IT spend by technology product, 2006 - 2010

Table 4: European identity and access management IT spend by country, 2006 - 2010

Table 5: North American security IT spend by country, 2006 - 2010

Table 6: North American security IT spend by source, 2006 - 2010

Table 7: North American security IT spend by technology product, 2006 - 2010

Table 8: North American identity and access management IT spend by country, 2006 - 2010

List of Figures

Figure 1: Phishing activity by sector

Figure 2: UK fraud losses

Figure 3: What compliance and regulatory issues are driving increased IT expenditure in 2007?

Figure 4: Example of potential password burden on one customer

Figure 5: Banks must ensure they are able to interact with legitimate customers while blocking threats

Figure 6: Retail bank security investment priorities

Figure 7: Multifactor authentication

Figure 8: European security IT spend by country, 2006 - 2010

Figure 9: European security IT spend by source, 2006 - 2010

Figure 10: European security IT spend by technology product, 2006 - 2010

Figure 11: European identity and access management IT spend by country, 2006 - 2010

Figure 12: North American security IT spend by country, 2006 - 2010

Figure 13: North American security IT spend by source, 2006 - 2010

Figure 14: North American security IT spend by technology product, 2006 - 2010

Figure 15: North American identity and access management IT spend by country, 2006 - 2010

Abstract

Introduction

Security is a fundamental requirement for all banks as customers expect their investments, personal information and credit details to be secure. Fraud continues to be an issue for retail banks across the world. The majority is currently related to cards and payments, however, identity theft and account breaches are on the rise. As a result, banks are fighting an ongoing battle on all fronts.

Scope

Covers the European and North American retail banking security IT markets

Discusses implications and industry dynamics of security IT on retail banking institutions

Highlights

Against a backdrop of tightening regulatory controls, fraudsters' increasingly sophisticated methods, growing commercial losses and concerns about customer retention, banks are being driven to implementing stronger security environments.

The number of individuals with access to a bank's internal operations is growing all the time, thus increasing the complexity of ensuring that access is tracked and that customers, staff and contractors alike all have access to what they need, while unfriendly parties are intercepted and access is blocked.

While banks need strong security solutions in place to manage individual elements of their operations, it is critical that these are combined with a cohesive security infrastructure that enables them to have a clear view of the threats they are exposed to at any given point in time across the entire enterprise.

Reasons to Purchase

Gain visibility into the dynamics of the retail banking security IT market

Gain market insight to assist in your strategic planning and go-to-market strategy

Get Full Details About This Report >>

About MarketResearch.com
MarketResearch.com is an online aggregator selling over 160,000 market research reports, company profiles and country profiles from over 600 research firms. Our reports will provide you with the critical business and competitive intelligence you need for strategic planning and marketing research. Coverage includes the US, UK, Europe, Asia and global markets.