How Do I Sign New York Banking Form

How do i industry sign banking new york form secure

hello I'd look up my name is Rajesh welcome to next back and the next Bank chapter owner of Silicon Valley today I have two amazing guests CEO hit this we was for persistent he is the elite of the IOT division and he'll be talking about IOT in banking and we have NS Samba booty who is an entrepreneur multiple companies he has founded and he is focused on security in banking so they will be talking to us today on both those two topics thanks our Edition for the introductions and it is my pleasure to be part of this event and so today I'll be talking about IOT innovations happening happening in the banking domain basically so if you look at the paradigm here right in the last 20 25 years so the banking has gone through you know very detailed Tron transformation in terms of you know Digital Bank 1.2 we're in very basic facilities that are available all the way to the current generation talking about digital Bank for dot o we're in a lot of you know IOT related technologies are being used mobility being the core form of interactions from the customers video collaboration and you know virtual reality all these technologies are being utilized as part of this new initiative that is happening in the banking so you know as the banking is going through the transformation there are a number of challenges because of the ever demanding customers customers are requiring more you know personalized services and not only that right so it's all about new products new services new competitors competitors like Amazon so they are eating up small SME and loans you know for the small businesses and apart from that there is tremendous amount of data information that is being gathered so banks are looking at different tools to you know derive insights from this data to first is you provide better customer experience provide you know waste for customer retention and at the sea time look at avenues for new revenues for the bank's so if you take a step back and look at what's happening in the industry with regards to Internet of Things IOT so there is a lot of investment that is being made across the industries so if you look at this chart a manufacturing is at the very top and you see finance sector banking right in the middle but what you know the general trend is in the next five years or so there will be a lot of technology spent in the in the industry and that is driving the IOT adoption across the industries and banks definitely and the financial services are not lacking behind so they want to adopt IOT and you know provide more value add services to the customers if you look at the near and long-term goals you know across the industries the near-term goal is around how to improve the operational efficiency you know try to do you get some savings done I using the operational efficiency as a factor but as you know as the adoption increases you know the the goal is around outcome based model so how you provide specific outcomes targeting the entire ecosystem and that's the way you know the industry is going to adapt specific especially when I talk about the IOT adoption and finally when you talk about IOT it's a big data problem the research indicate that there are going to be 50 billion devices by 2020 connected devices each of these devices bringing in tremendous amount of data so how do you manage this data so it is really becoming an AI it's a big data problem so you know there are a few examples cited here although not from the banking domain but you know one flight when it lands there is one terabyte of data that is captured through just one flight just imagine now how many flights you know operate just in the US on a daily basis so this is a tremendous you know a problem at hand and similarly in the banking domain customers are using mobile devices customers are using variable devices for interactions and all the data when you capture that data and you're millions and billions of customers then it'd be really becomes a big data problem and the challenge is how you derive insights from this for better customer experience and services and this is just an example of the sensor installation in the financial services industry so we talked about 50 billion connected devices across the industries and if you look at in the financial services sector itself right from banking all the way to commercial real estate there is a lot of adoption that is happening a lot of sensors will get deployed right from beacons all the way to you know connected connected LED lights so there are numerous types of sensors that gets installed in these domains and obviously large banks are not lacking so they are ahead of the curve they are basically doing that IOT adoption but today at a small scale but eventually it's going to grow and some of the key areas here are customer experience customer retention value add services and increased profitability so they are already seeing you know increased value through the m2m IOT installations and if you if you look at a digital bank today right so you know talk about virtual reality now you know automated tellers so a customer goes in inside a digital bank if one teller is busy or all tellers are busy there is an option to you know go and talk to a virtual teller to give advice use mobile phone for connection to ATMs to withdraw money from ATMs they do a lot of interactions using you know IOT enabled devices we're talking about you know smart smart watches smart watches customers want interactive information you know delivered to them and you know on hand in across all these devices and balances in terms of you know alert so they get delivered to your you know smart watches smart phones and other devices so if you look at the next generation banking challenges right there are top six priorities and one of the top priorities is around custom you know creating customer centric business models as customers are becoming more technology savvy they are demanding more personalized and immersive experiences delivered to them so banks are gearing up are towards you know providing more customer centric business model and if you if you look at this right so you know banks when they are going through this transformation today they have a 360-degree view of customers in terms of their transaction data demographic data a behavioral data and social data interaction data so currently banks have a 360-degree view of a customer's banking profile but you know there are so many other touch points in customers lives which banks are currently not capturing so how do you do that so in terms of you know capturing that data are there what are the additional touch points that you see and if you look at the additional touch points IOT plays a very critical role here you talk about your home automation you talk about you know automotive connected cars talk about you know health care variable devices so there are a lot of you know IOT related touch points in customer's life that can be captured along with a banking profile to create a more personalized and immersive experience so you know again we've put together this is our thought process in terms of you know how can Bank you know approach this problem in terms of transformation so on the extreme right you see there is a banking profile of a customer and a banks have 360-degree view of that customer but there are so many other profiles we talked about health profile we talk about you know automotive profile our social profile so you can banks bring data from different profiles through a big data architecture expose that to an API layer and provide value add services not only to the magnet customers but also open this through a marketplace to partners who can participate in this through this ecosystem and deliver targeted personalized offers and services to these customers and I how do how can Bank achieve this right so a couple of key things banks need to basically be value Angra Gators aggregate value from that ecosystem and deliver that to customers be an advisor today you know as a customer I rely on Bank you know for let's say financial advice but at the same time can Bank capture various customer touch points and you know be be an advisor across all the touch points and finally a facilitator you know as a customer I I would want one-stop shop for me right so where in all services can be delivered through one channel and that's where banks can play a very important role in terms of you know aggregating that and creating some or facilitating and advising the customers throughout their journey and if you if you you know see you see this particular slide right if take they're just a banking and a business case of mortgage lending what is the you know what is the you know typical outcome that gets associated with mortgage lending in the banking domain so home management you know if he typically you to you know take mortgage loans through a bank or other financial Institute's so in that case can bank they have create a risk profile of a customer not only based on credit card rating but also a based on you know other specifics too you know and it could be when I talk about home management it's about you know what IOT technologies are you utilizing in the home is it energy-efficient is it you know do have home security all these aspects really could change the dynamics and banks can have a very tailored you know offers based on the customer needs so I think this is what we now have again a lot of innovation is happening in the banking domain banks you know as well as other industries are going through transformations and you know and the only way to do this is you know be a value a greater be a facilitator and an advisor throughout the journey that customer is facing thank you as we heard from how the IOT is changing banking as the customers are asking for convenience they also want the segment to be secure so there have to be a fine balance between security and convenience so now we'll talk to Samba was being was done a lot of work in the in terms of banking security so have him talk about the human side of that security okay thank you radish so uh when people think about cybersecurity everybody thinks about hackers but at the end of the day security always involves humans and there is a human factor to security because human behavior patterns your wants and needs drives your behavior okay so if you look at the problem definition then cyber security you can say is is really a human problem and as you as you can see from the common sacks code you know your base emotions drive a lot of your activities you know you agreed your jealousy factor and so on and the the real problem from from a computing perspective is how do you control the clicking behavior of a human being okay so the thinking before we click is a fundamentally a difficult problem when you think about it and and and studies have shown that if you look at it from a timing perspective the actions of humans are very subconscious particularly clicking so an eye blink will take you about 400 milliseconds okay that's a very small time in the blink of an eye a lot of things can happen and if you think about the mouse click or a swipe or a tap it can take you as long as twelve hundred milliseconds okay so and I've given a link here you can actually go run an experiment for yourself and see how long it takes you to do do some clicking okay and when you think about banks and the untapped automatically you think about money and the traditional old-fashioned way is to do physical theft so so let's talk about a couple of very recent cases over the last couple of years in the case of the first one in Atlanta one of the employees who used to work for banks he was a manager he had access to a lot of cash he stole quarters okay one hundred and ninety six thousand dollars in quarters or a period of month and a half and that's a lot of quarters and it and it physically wastes a lot of you know it's about five thousand kilograms if you will or about the two and a half cars you know turned up rhesus if you want to think about it and he actually spent some time moving in physically out till you got caught and in the case of New Jersey Village one of the managers who had access to a cache from parking meters he committed you know he decided to steal it to a lot of quarter's Hylian stuff it in his pants and stuff and walk out and this happened over a period of two years and he stole four hundred sixty thousand dollars from this little village okay or town if you will and again that's a lot of quarters physically it weighed quite a bit you know it's about it was about eleven thousand five hundred kilograms if you will right so took a lot of effort for him to move it out okay and then in terms of new digital trends digital theft when people talk about hacking then most clicks or what drives digital theft and so the how long it takes for you to do clicking becomes a factor and if you look at round-trip delays today thanks to technology end to end propagation delay particularly in this particular diagram I'm showing you it takes about a hundred milliseconds round-trip that spans about the ninety eight hundred kilometers or more right so you could literally go from China to Santa Clara bounce to Japan and come back all within hundred milliseconds and when you translate that in terms of a click time which is twelve hundred milliseconds you can go back and forth about twelve times that's a lot of time from from computation perspective what does it mean for you right from a banking perspective this just happened about a week ago and it's making the rounds in the Internet Bangladesh central bank got hacked basically somebody stole their digital identity data and their access course and they kept several billion dollars in the Federal Reserve Bank in New York and the current account they hacked into it and transferred one hundred million dollars out few mouse clicks went to Philippines Sri Lanka and a few other places before they one of the hackers made a mistake he made a typo in in spelling out foundation that's how they got caught so one of the routing banks out of Europe - Bank caught the typo and ended up with querying the Bangladesh Bank and that's how the they were alerted to this whole scheme and it turned out on investigation that more than eight hundred seventy million dollars were attempted to be transferred out all because identity theft and the stealing of the Swift course that made it possible okay so a clique can be very dangerous for you in today's environment and if you take this further even in our own backyard in the US the federal prosecutors in New York they ran a five year program you know and the court of a huge gang of about forty eight people and and they used inside employees bank tellers in particular they're the the gang goes about forty seven forty eight people strong in multiple banks so they had access to customer data they use that error to make fake identities walk into different branches and basically steal the consumer data you know bank's customer data so so this is becoming a huge huge issue for banks how do you prevent identity theft being misused against your own customers so the bottom line is in today's cybersecurity when you think about cybersecurity it becomes a physical access control problem it's not just you know a username and password so if you look at the biometrics for example I'm sure you've heard enough cases about Apple fingerprint being stolen and you can hack it there's a University of Michigan paper being circulated how you can easily you know fake fingerprints and enough and and get into Apple iPhones you can fake you know the iris in a scans for example and so so biometric security has already been broken okay by a bunch of researchers and if you think about keys you use keys to get into everything from your doors to your cars to your safe and so on 3d printers and cameras you know you can make copies very quickly scan make copies of Latisse and make a you know a copy of any key that you want and get it anything any any place you marked so physical security is becoming a problem as well and the data in use in in your setting in front of a computer somebody could take a camera and take a picture of your screen so it acts like a scanner so you can ta e data off your screen so so data induces becoming a problem so the bottom line is see most of the traditional security practices like two-factor authentication or user name and password they have all been compromised so we need to go into newer techniques like continuous monitoring and continuous authentication techniques to address some of these newer problems so password has traditionally been one of the primary making of mechanicals for you to get access into your computer system and that is become a huge big problem okay and so if you look at the Internet of Things in particular if everything is connected to everything and you have computers everywhere and there's software everywhere you're gonna have a problem and and so if there is a computing stack in it there is a hack in it and that is becoming a huge big issue and if you look at most companies today there was a survey done a few months ago 52% of the companies they all employ perimeter security as a strategy meaning it's a more than castle type of defense and if you penetrate the perimeter defense you're done okay so those traditional practices don't work anymore so and if you look at password itself it doesn't work anymore and there's a lot of experts running around and making a lot of recommendations and the reason why it doesn't work is because it works against human nature if you ask somebody to as a human being saying keep passwords long and complex keep changing it frequently and so on it works against your fundamental nature so what do people do they use one two three four five as a password okay so it becomes an obvious thing and you ask them to say hey you know make it more complex you'll say this is super password okay so it's it's human nature the hackers themselves getting smarter such a cat-and-mouse game and if you remember the old mad comics it is the black black spy versus the white spy and it keeps going going and going right so the bottom line is the old practice of using static controls no longer work effectively and the all of the RSA tokens and so on they've all been hacked so what is the answer the answer is you got to look at continuous monitoring and continuous authentication techniques to get around some of these hacker mechanics that people are using the break your system so to summarize human factor is your a Chili's heel for security okay the key question that enterprises and PACs have to ask themselves is what can I do to make the employee think before they click before they do something stupid intentionally or unintentionally right that's the key key factor you got to get into their head right and which means you need to monitor continuously who's getting on your network what are they doing how are they doing it and the what are they trying to do which means you have to compute the context constantly are they opening up a file putting it into their USB Drive or are they attaching it to an email and sending it out are they showing that data to somebody else are they trying to take a picture of the screen and so on okay so so the bottom line is continuous authentication and monitoring is very very key going forward and the and along with this you gotta have an audit trail which is verifiable an immutable you know record if you will that keeps yunus you know users honest if you will right and so so this is one of the ways for you to address user behavior patterns as you go forward okay so the summary is say you know user behavior controls and the how you address security is really a human oriented factor and and I've been involved in in research for the last five years trying to bring some of these techniques into the marketplace as a solution and the you can see my background here if people want to get in touch with us we'd be la we would love to interact and engage in a debate and we are interested in engaging with banks for example and you're working with persistent to try some proof of concept with a few banks with some other techniques and it's going very well thank you thank you thanks for all coming here and I really want to thank persistent for sponsoring our first nexpaq event Thank You persistent and thanks AMA thanks you appreciate your talking about these great things here and the audience thank you for coming here