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Technology in Financial Services. Presented to: Centre of Excellence in Financial Services Education.
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Technology in Financial Services Presented to:Centre of Excellence in Financial Services Education
“There is a convergence: the line between what we used to call technology and the business almost doesn’t make sense anymore – the technology is the physical manifestation of the product we make.” (Christopher Perretta, Executive Vice President and Chief Information Officer, State Street, September 2011)
Growth in Electronic Transactions Source: Canadian Payments Association
Implications Technology is creating new demands and new challenges.
Demands • Customers are demanding that technology provide: • Speed • Simplicity • Safety and security are table stakes. • Competition drives innovation.
Simplicity • Customers want transactions to be simple. • Response: - Mobile Banking - Mobile Wallets
Mobile Banking Mobile NFC Payments
Result of the investment in mobile: The MasterCard Mobile Readiness Index recently ranked Canada as the second most mobile payment-ready country in the world, behind only Singapore.
Payments Technology is an Emerging Business Domestic International
Challenges The pace of change is creating new challenges in: • Security • Consumer awareness
Security “At OSFI, cyber risk has become one of our top concerns.”* “While the cost of attacking bank systems is going down, the resources needed to identify, monitor, and mitigate against vulnerabilities and potential attacks are increasing.”** *OSFI Superintendent Julie Dickson, May 2, 2013 **US Comptroller of Currency Thomas Curry, September 18, 2013
Importance of Customer Awareness • Customer flexibility and responsibility MOST LEAST
Security • More channels to transact = more vectors for fraud • Cyberattacks • Response: - Stronger authentication - Diagnostics - Predictive analytics (a.k.a. “big data”) - Technological countermeasures
What it Means for Education • Growing demand for • Mobile commerce / mobile payments • IT security
Increasingly, financial services needs people who understand the business of finance and the technology of e-commerce.