The emergence of AI has had a positive impact on the financial industry and has enhanced productivity, in particular in the accounting and banking areas. Therefore I anticipate that machine learning will definitely be a significant area of investment in the near future for this sector.   However, as with any change of this magnitude, the benefits offered by the implementation of AI in the financial sector are met with a number of challenges – most notably businesses ensuring they are equipped with the right technology, staff and skills to embrace AI and automation.

Automation is now used to perform or enhance many administrative tasks, and Artificial Intelligence is already more a part of daily life than you might realise. Robotics, while commonplace in manufacturing, are beginning to show impact in other sectors. One of the key drivers behind the adoption of AI software in the financial sector is the time-saving benefits it offers users. Gone will be the days of long hours spent working on spreadsheets, processing data, or handling customer enquiries. Those tasks will be streamlined by machines, allowing workers to focus more time on complex tasks which require human touch. As well as working with advancing technologies, junior employees will be involved in more planning, reporting and analytical jobs, and as such their required skill set will change.

Gone will be the days of long hours spent working on spreadsheets, processing data, or handling customer enquiries.

Through machine learning, artificial intelligence can painlessly consume and process large amounts of data at an accelerated level. Its vast speed brings efficiency and productivity to the financial sector, and as it continues to develop and become even more efficient, it can identify more patterns than ever before, providing scope for customised offerings to customers. However, this being said, adoption of AI in the financial sector imposes many challenges to the industry. The use of AI’s ability to consume large amounts of consumer data raises questions about how this information is stored and processed and to what end. Organisations that encourage, and even mandate the uptake of these types of technologies must tread carefully. Individuals are already highly attuned to the sensitivity of their personal information and will require robust guarantees about the security of any further information they are willing to give up.

One limitation of machine learning in this context is that it primarily relies on the basis of historical data sets and as a result, can fall into the trap of becoming repetitive, as well as potentially giving way to conscious or unconscious bias. For instance, how fair can a financial system really be without human involvement? In a world where new technologies are quickly improving or even replacing existing processes, there is one area that cannot be automated, and that’s building strong relationships with clients. The human element is needed in these instances to perform certain job functions that AI is incapable of replicating. Individuals have the ability to be aware of their own emotions and those of others, but also their capability of showing empathy in the way they handle interpersonal relationships, which is known as emotional intelligence.

It’s crucial for businesses, in the fast pace of today’s world, to continue to develop and think about where their use of data can get them tomorrow, as well as where it’s got them today. Organisations must not become complacent, and instead continue to reflect on their processes, challenge routine and be future-facing in their approach to machine learning.

One limitation of machine learning in this context is that it primarily relies on the basis of historical data sets and as a result, can fall into the trap of becoming repetitive, as well as potentially giving way to conscious or unconscious bias.

Over the last two decades, technology has advanced at such a speed that many roles in the financial sector have either disappeared or wholly changed due to the implementation of AI technology. One of the many challenges facing the finance industry is the impact that AI is having on the job roles within sector. Artificial intelligence and automation can take on many of the tasks a transaction led accountant or data administrator would typically undertake, with little or no human involvement. The process is almost seamless, error-free and time efficient.

The challenge of economic survival of the financial sector is to not only accept these changes, but to capitalise on them. With any significant change in the market, there’s always a fear that it will eliminate jobs from the workforce. AI tools may well remove a number of job tasks carried out by accountants and data administrators, but rather than eradicating jobs and losing talented members of staff, employers will need to ensure that their HR directors are equipped to spot the right skilled professionals who are well versed with the latest AI technology. The HR function will also need to quell fears of job losses amongst employees and instead empower their staff to adapt and develop new skills to work alongside new technologies.

At this juncture, skilled employees are key – and we anticipate a change in the skills that businesses across the financial sector will be demanding from their employees and prospective hires. For years, Michael Page clients in this sector have been seeking candidates with financing and analysis skills; those that have a strong understanding of financial planning and reporting; people who are adept at using Excel and other such software. Our recently launched Skills Checker tool has taken the most in-demand skills for roles across the financial industry to highlight what employers are looking for today. But as we continue to see AI and automation adoption increase in the sector, we expect to see a rise in employers expanding the skill sets they require from new employees with coding and AI experience becoming ever more valuable.

One of the many challenges facing the finance industry is the impact that AI is having on the job roles within sector.

To the same end, the advent of these new technologies presents the opportunity for businesses to enhance their current workforce by equipping employees with the skills to work alongside AI and automation. A challenge in itself, such training should not be brushed off as a ‘nice to have’; it is vital for the growth, and even the survival, of a business. Employees are the lifeblood of any business, as the landscape of the financial sector changes, businesses must ensure that their workforce is keeping pace with the industry.

Before incorporating AI software into their businesses, organisations will need to think strategically about what their key objectives are and what they hope to achieve from using the technology. This is the only way they can truly expect to see any long-term benefits, through a strategic and considered approach – not simply thinking of AI as a ‘nice add-on’. It’s also important for organisations to have realistic expectations.

Businesses should start by looking at key areas where they can make an impact by using this technology on more routine tasks and go from there. This will help to build their confidence and understanding of the software over time, rather than trying to implement it all at once. Strategic thinking and patience are key here.

Although robots and AI will inevitably take a lot of the more data-driven job functions, there will be a change in how humans and machines interoperate for the highest level of efficiency and playing to each other’s strengths. The increased use of AI in the financial sector is going to spur on new innovation, and an entirely new landscape of jobs are going to emerge. Although there is always a lag between the adoption of new jobs and loss of current jobs, up-skilling and re-skilling are going to be the key to success in the future of the financial job market.

Website: https://www.michaelpage.co.uk/

Financial sector leaders feel more positive than peers in other industries (89%) about tech change within their organisations, according to Fujitsu’s Tech in a Transforming Britain report. Despite half (50%) saying banks will not exist in their current form in a decade, an overwhelming 95% believe technology is the key to driving their organisation forward.

Seven-in-10 financial sector leaders believe technology will enable them to overcome many of the socioeconomic issues they are facing today. This is an idea that their peers agree with; over a third (37%) of business leaders are banking on financial services to innovate and drive change in the UK, while almost half of business leaders (45%) believe banks are changing the most in the UK today.

It’s a change both consumers and leaders in the industry are keen to see continue. Consumers want to see Artificial Intelligence (13%), biometrics (15%) and a 5G mobile network (10%) implemented to improve their experience in banking over the coming year. With banking leaders looking to Artificial Intelligence (42%), biometrics (35%) and robotics (32%) in the same period it is clear that there is alignment.

“Financial services is clearly seen by the public as a sector that has and continues to be transformed by technology,” said Mike Foster, Managing Director, Financial Services Sector, Fujitsu. “This perception is fully justified. The majority of financial services organisations have not only embraced technology, but are seeing benefits with workforce productivity, operational efficiency and in driving business growth. As further transformation of the sector looks inevitable – for example through the introduction of new pieces of regulation such as PSD2 and rise of blockchain technology – it is vital that organisations consider how new technologies can shape their futures and ensure they are ready to compete in a diverse marketplace.”

Improving employee productivity (47%), operational efficiency (38%) and fuelling business growth (37%) were the key internal benefits financial leaders attribute to technology today.

There are challenges ahead, however. While the financial services sector is aware of the benefits of technology, they have concerns. More than half of the sector’s leaders (55%) say cybersecurity is their biggest operational challenge today – higher than the average across industries (48%). Access to talent in a new digital world is also an issue; 56% say a lack of skilled employees has the potential to impact growth and revenue most within their business.

Foster continued: “Banks have led the digital charge for many years, a fact that is recognised both amongst their peers and UK consumers. Many assume this means there is nothing left for them to implement, yet, with almost half saying their competitors are doing more to drive the UK forward, this is clearly not the case. While there are a wealth of digital tools and services available for consumers, there is a need for banks to collaborate to begin to address their digital future. Whether that’s coming together to address cybersecurity risks, or working together to address the skills gap, the focus must now be on the internal demands to ensure success.”

(Source: Fujitsu)

Within every business, there will be those who suffer in silence to the point that control is lost and the very act of getting out of bed becomes utterly overwhelming. Statistics show that employees in the finance sector suffer more than most when it comes to mental health.

Employees are still reluctant to share mental health information with their managers or bosses, seemingly for good reason. The stigma associated with mental health, being treated unfairly, becoming the subject of office gossip or compromising their employment terms are all legitimate fears.

To tackle this global workforce issue, Instant Offices encourage businesses to support their teams to speak about and prioritise mental health, promote a healthy work-life balance, reduce the stigma attached to mental health issues and introduce initiatives to support and encourage staff who choose to speak up.

Mental Health and Work in the UK

Studies from Manpower Group suggest that millennials display the highest levels of anxiety, depression and thoughts of suicide of any generation, considering they are also simultaneously on the cusp of becoming the largest global workforce by 2020.

According to Deloitte, the average person spends 90,000 hours of their life working, and poor employee mental health can be due to factors internal or external to the workplace. Without effective management, this can have a serious impact on physical health, productivity and more.

In the modern workplace, smart employers are placing workplace wellness at the core of their business by recognising the importance of their staff. They are going beyond protocol, processes and profits to ensure individuals feel valued and supported. Wellness and workplace health initiatives are varied but include everything from serious interventions and counselling services to mindfulness training, flexible working and even options like yoga, time off and massages at work.

That said, an alarming number of companies are still avoiding the topic of mental health in the workplace. A report by the Centre for Mental Health revealed that absence due to mental health cost the UK economy £34.9 billion last year. Additionally, the economy lost:

• £21.2 billion in reduced productivity
• £10.6 billion in sick leave
• £3.1 billion in staff turnover

It’s Time to Prioritise Wellbeing at Work

Of the 5 million people being signed off from work every year, data from NHS showed an alarming 31% are taking time out due to mental health, with a shocking 14% rise in doctor’s notes relating to anxiety and stress in one year. This is why the NHS has called on businesses to wake up to the reality of mental health and its dire effects on the wellbeing of its employees and on overall workplace success.

Here’s what employers can do:

1. Minimise the stigma: A study from Business in the Community shows, only 53% of employees feel comfortable talking about mental health issues like depression and anxiety at work. Instead of making employees feel like liabilities or burdens, employers need to take active steps to encourage conversations around these issues. Taking a mental health day or asking for support around mental health issues should not impact an employee’s reputation and how they are treated at work.
2. Pay attention: Around 91% of managers agree that their actions affect their staff’s wellbeing, however, only 24% of managers have received any training in mental health. This lack of training and sensitivity only works to perpetuate the culture of silence around mental health and wellbeing at work. Companies should be working to combat this by monitoring employee stress, encouraging communication and taking active steps to increase knowledge around the issue.
3. Be more flexible: There are several ways to boost employee engagement and happiness in the modern workplace. Around 70% of employees want a say in when and how they work, and a growth in flexible working shows more businesses are responding. Introducing a flexible working option is one of the ways businesses can prioritise their employees’ personal needs while benefitting from their productivity boost, too. Data from LSBF shows nearly half of employees advocate for flexible working hours as a way to reduce workplace stress and anxiety, increase productivity, and to improve morale and engagement.
4. Introduce mental health initiatives: It is crucial to increase employee awareness of mental health at work, support employees at risk and take steps to support those suffering from mental health problems. Education is key, and strategies need to be tailor-made to suit each business and its needs. Aside from increasing workplace happiness with perks, time off and better communication, businesses need to look at long-term policies which advocate for better treatment for at-risk employees from every tier of the organisation.
5. Manage via a coaching approach: Historically, tyrannical managers focused on ‘the numbers’ or ‘getting the job done’ have been the norm, but fortunately, the modern workplace has changed. Today, the manager who adopts a more holistic approach by focusing on the growth and development of their team, personally and professionally, will see greater results and engagement. Investing in a coaching approach has shown clear improvements across all areas and improved trust between managers and employees. Getting this balance right enables employees to speak about their levels of stress, their worries about their role and more.

Placing health and wellbeing at the heart of business can help employers attract and retain talent, improve productivity and happiness, and positively impact the bottom line.

Educating the workforce on the availability of such programmes where they can find support in a confidential and respectful manner, will help to address personal challenges before they become overwhelming.

With financial services going increasingly global, companies are now doing business all over the world. While this presents a bounty of opportunity, it also throws up a fair share of risk, particularly when it comes to the tricky question of travel etiquette.

Economies from established to emerging each have their own cultural norms and social mores — make one (unintentional) error and you could land yourself in an embarrassing situation, hot water or something far more serious indeed.

Today, forward thinking companies are becoming increasingly aware of travel etiquette. As firms spend financial resource on sending their staff abroad for meetings, training and networking, they are focusing on ensuring that their employees are fully up to speed on professionalism and understanding.

After all, when deals are being signed, made or broken and contracts are based on the outcome of a successful meeting, it’s more crucial than ever that everyone present knows how to present themselves, communicate properly and engage their audience. So what is travel etiquette in the finance sector?

Travel etiquette is about understanding local customs

While some people may think that globalisation means that customs and norms have become identikit, go out into the world and you realise that really isn’t so, especially when it comes to doing business. Each and every country has its own business etiquette, and it’s important you’re aware of the intricacies of these, as even a minor slip can have serious consequences. This useful resource from travel experts Expedia gives you lots of little tips for getting business meetings right when you’re in undiscovered country. In Turkey, for example, small talk is considered important in business meetings, so don’t jump straight into business-talk!

Travel etiquette is about mutual respect

Unprofessionalism can cost you business. But professionalism can help you grow. Understanding travel etiquette helps financial service firms treat people with respect, admiration and decency. In today’s fast-paced world, such traditional values, some say, are fading out. Practicing good travel etiquette helps you forge connections with people in different countries, network appropriately and set strong standards of performance and quality.

Travel etiquette is about empowering and inspiring your employees

Upskilling your employees in travel etiquette not only minimises the risk of an awkward business meeting peppered with social faux pas, it means you’ll be helping them become rounded individuals and employees with a thirst for knowledge. Workers confident about travelling to a new country and negotiating, selling or pitching for business will feel inspired and ready to take on any challenge. This improves them as people, and it improves them as employees, giving them the skills and knowledge they need to help grow and develop your company.

Here's five tips for travel etiquette in the finance sector:

1. A handshake is still important

We might have ditched the formal dress code, titles and everything else, but a handshake should still be considered an essential when doing business. It takes little effort and, as we all know, a little goes a long long way.

2. Don’t interrupt people

In competitive industries, interruption isn’t uncommon. But far from making you look ambitious and driven, in most cultures it simply makes you appear rude and unprofessional. If you’re ever tempted to interrupt someone when they’re part way through a sentence, think twice, and wait until they’ve finished before making your point.

3. Avoid using your phone during meetings

The rise of the smartphone means many of us now use our personal devices more or less all day. And they’re an important tool when it comes to doing business, as we use them for sending emails, making calls and more. But when it comes to a meeting, put the phone away. Even if you’re doing something work-related, it looks like you’re distracted and would rather be elsewhere.

4. Greet everyone

When meeting a large delegation of people, it can be easy to overlook a couple of individuals when it comes to introducing yourself. However acknowledging everyone is a basic sign of respect, regardless of their status or job title, and ensures you don’t look like you have a superiority complex. Respect across all levels of any organisation and is crucial.

5. Say please and thank you

It sounds obvious, but you’d be surprised how the simple act of saying please and thank you is a dying art. Manners cost nothing, so be polite at all times.

Brenda-Lee Russell is the Managing Director of Omni Corporate Services Ltd. and is responsible for the overall day-to-day operations and management of the business, with complete oversight of the business platform and business models. Here she speaks to Finance Monthly about trends within the financial sector in The Bahamas and tells us about her company.

What is the current state of the financial sector in The Bahamas?  

I think that the current state of the financial sector in the Bahamas is steady, but optimistic. Within the last few years, we have been faced with many challenges that would have brought us to a place where we had to do things differently. We found ourselves at a crossroad for a mandatory need to change some areas. One significant factor that compelled us to change the way we do business with our clients was the legislation and enactment of The Foreign Account Tax Compliance Act (FATCA). It was enacted in 2010 by the US Congress to target non-compliance by US taxpayers using foreign accounts. FATCA requires offshore Foreign Financial Institutions (FFIs) to report to the IRS information about financial accounts held by US clients (taxpayers), or by Foreign Entities in which US taxpayers hold a substantial ownership interest. The Bahamas did not hesitate to comply with such requirement and in November 2014, we entered into a Model 1 Intergovernmental Agreement (IGA) (Bahamas-US FATCA Agreement) for implementing FATCA. Subsequently, in 2015, The Bahamas and The United States of America Foreign Account Tax Compliance Agreement was enacted. Of course, the ultimate goal of FATCA is to deter tax evasion by imposing information reporting requirements on financial institutions throughout the world (with respect to US persons with accounts in those institutions). Many of the banks and other financial intuitions that work with people with some kind of US Indicia, would immediately have reporting obligations - firstly to the local Competent Authority, for the purpose and intent of being compliant with FATCA. As a result of FATCA, some FIs have opted not to continue to market within the US Jurisdiction and would prefer to stay far away from US clients. This is easily understandable.

Another challenge or change we face, as we speak, is the Common Reporting Standards, commonly called CRS. Once again, the Government of The Bahamas stands ready to comply. It has taken a policy decision to implement CRS by way of the Multilateral Convention. Financial Institutions must be ready to report to the Local Competent Authority, as early as mid-next year 2018.

Although we are faced with many challenges, we are very optimistic that the days, weeks, months and years ahead, shall produce growth and positive outcomes. However, we must be mindful to be on the cutting edge of change in every possible way and we have come to the stage where we must start thinking outside the box. It is safe to conclude that we would have seen a slight degree of shrinkage in our industry, with many of our Super High-Net-Worth clients exiting The Bahamas and a number of our banks restructuring internally. We’ve also witnessed a couple of our major banks decommission private banking, while focusing solely on the trust side of the business, or vice versa. It is understandable that these radical changes have resulted in a few job losses, but it’s safe to say that The Bahamas’ financial sector continues to thrive.

What do you anticipate for the sector in the future?

I anticipate to see overall growth in the financial sector, as well as the evolvement of many small financial institutions.

What is Omni’s mission? What differentiates the company from its competitors?

Omni has learnt how to manage risk to optimize solutions for our clients. We have trained our minds to think differently. We take the time to evaluate, calculate and assess our clients’ overall objectives and come up with a sound solution. While we will always comply with our local regulators and act within the ambit of the law, we will not be afraid to think outside the box to create a solution for our ever-changing clients. Omni’s mission statement is: “Infinite Possibilities, Answers and Solutions in a Changing World”. One of our distinct differences, when compared to our competitors, is that we will not send away our US clients. Instead, we help them fully understand our obligations under FATCA and that we must report to the IRS who they are, as well as their interest in the assets that we manage.
Things have changed in the past 15-20 years, but at Omni, we are open-minded enough to have adapted to these changes.

Website: http://thinkomni.com/

 Like most industries at the moment, the financial sector is experiencing vast change, and fresh legislation is coming into play to adjust to the shifting economic landscape and its demands. For financial services and payment services providers (PSPs) operating in the online banking arena, this will raise some concerns.

 The Second Payment Services Directive (PSD2) came into force in January 2016, and will become EU law on 18^th January 2018. PSD2 looks to encourage competition, protect consumers, and unify Europe’s markets. The implementation has been prompted by the growth of e-commerce and mobile business, and despite Brexit, this is something that is relevant to all European operating PSPs and banks.

The industry is accelerating towards the age of open banking, where PSD2 will enable previously-isolated payment accounts to draw upon one another, giving third parties the ability to access a bank’s application programme interface (API). This will allow them to bypass traditional compliance and infrastructure demands placed on the host. By doing so, the legislation removes the banks’ monopoly on their customers’ account information and payment services.

Many first-mover FinTech organisations and open banks have already recognised the opportunity here and thanks to their agility, have already earned customers’ trust. But the change isn’t quite so readily adaptable for the likes of the established banks.

Indeed, it’s understandable that most established banks see PSD2 as a threat, or at least view it with uncertainty. But the approaching era for open banking is inevitable, and these banks will need to instead consider how this legislation presents fresh opportunities and will incite new, best business practices.

Not all banks are viewing this legislation negatively. In fact, PwC recently found that nearly half of them (44%) are preparing to offer open banking in the next five years. However, with PSD2 coming into place in January, these plans may need to be brought forward.

PSD2 makes the need for collaboration and innovation explicit; only by developing new systems will PSPs meet the consumer’s increasingly-high expectations for fast, simple and secure digital banking. But this won’t be straightforward for banks with legacy technologies, however, they do have other benefits such as access to vast amounts of data, robust customer relations and scope of reach.

As a result, despite banks inevitably being slower than PSPs on the uptake, their scale and heritage will enable them to face the challenges brought about by PSD2 and subsequently they’ll advance their services with new levels of customer-centricity in doing so.

Another benefit for banks will be the ability to integrate third-party approaches to building and testing new business models, enabling them to more flexibly meet changing consumer demands. And by taking a collaborative approach, they will be able to extend their reach into new markets, and draw upon deeper insight from consumer data to create new products and services.

PSD2 may seem like it is opening the door to competition, but doors swing both ways. By overhauling their technological capabilities to meet digital demand, it will not be long before banks are working more closely with the forward-facing third parties that are proving so popular with the consumer – and even beating them at their own game.

Website: https://www.blackpepper.co.uk/

Craig James, CEO of Neopay, believes the financial sector must remain priority for Brexit negotiations. Below he explains to Finance Monthly why.

It is now 13 months since the UK voted to leave the EU.

With Brexit negotiations underway and Britain’s political position now more uncertain following June’s general election result, the impact for European business and finance remains similarly uncertain.

Much has been made of the fear that a United Kingdom outside of the EU’s single market would suffer economically, and that may be true – at least in the short term.

But it is also the case that losing the world’s fifth largest economy would be detrimental to the EU, particularly as political uncertainty and the instability of the Euro continues to cause disruption to Europe’s collective economy.

Recently, it was reported that a delegation from the City of London, led by former City minister Mark Hoban, had visited Brussels – independent of the government – to lay out a plan for a future trade deal between the UK and the 27-nation bloc.

The group, it was claimed, was particularly concerned about preserving the financial sector’s relationship with the single market, especially when it comes to “passporting”, the current system which enables businesses to export and import financial services under one licence.

Costly restructure

It is in the UK’s and EU’s best interests that a mutual arrangement continues after Brexit, and is something the government needs to focus on as it is something that is very achievable – and a likely outcome of negotiations.

If the UK is outside of the single market, that automatically puts an end to current passport rules, and while this could be detrimental to Britain, it also presents a problem for the EU’s financial market.

Mark Hoban is right to say that it would cost the EU if the UK leaves without a deal as it would mean the EU’s financial institutions would have no access to services in London, which will likely remain a key business and finance hub even outside the European Union.

A report by the Association of Financial Markets in Europe (AFME) which represents the financial services sector in the EU, recently published a report suggesting the UK’s exit could create €15bn worth of restructuring costs for the industry, and potentially €40bn to meet the concerns of regulators.

The impact on EEA and UK consumers would also be prohibitive. In a no deal scenario, millions of consumers could find themselves, at least temporarily, without access to some of their financial services if passporting arrangements cease without any mutual agreement or transitional arrangements.

And then there’s ancillary effects, for instance the impact on Financial Intelligence Units and their work, if the current regime were to end without any deal in place.

While minority areas in the EU may see Brexit as an opportunity, it is widely understood that the City of London carries substantial benefits due to its established reputation, size and strength in the global market, as well as offering cheaper and more efficient access to financial institutions.

No deal Brexit is not likely

While this recent City delegation has reportedly visited Brussels in concern over the potential of a poor deal – or no deal – after Brexit, this outcome is highly unlikely as the EU is aware of the damage it will do to itself by punishing Britain for the sake of it.

Even if the UK makes a clean break from the single market and the current passporting regime ends, it is likely that some form of mutual access agreement – like that reportedly being pushed by the City delegation – will be reached, enabling financial groups from the UK and the EU to operate in each other’s markets.

At the very least, a transitional period will need to be agreed to allow enough time for adaptation and prevent UK and European financial services falling into confusion with the resulting impact on consumers, businesses and our economies.

Financial services businesses looking to set up within this region will always look to London first as a base of operation. It remains to be seen what will come of Brexit negotiations for this sector, but a suitable trade deal and appropriate transitional period remains the most likely outcome for both sides.

According to the latest IMB Security report, the finance industry is facing 65% more cyberattacks than the average organisation. In 2016, the finance industry was the most targeted sector of cybercrime, an increase of 937% from the previous year.

What’s more, up to 50% of security breaches remain unreported to the public by the affected organisations in fear of damaging their reputation and people's confidence in investing with them. The result is that most people never realise their data and money are at risk. The recent cyberattack which affected organisations such as Telefonica, Renault and the British NHS, caused turmoil and panic in businesses across all sectors throughout the world. While cybersecurity is the biggest concern for most organisations today, the finance sector is the one mostly affected by cybercrime on daily basis.

The recent attack is a wakeup call for many who may now question if their money is safe and ask how best to protect it.

What makes a secure hedge fund?

Steven Jupp, CEO of Avem Capital says: “Coming from a technology and security sector, when selecting Avem Capital for a worthy hedge fund to lead, it was my priority to ensure we had the best security and protection of all our data. Naturally, when choosing a hedge fund, cybersecurity is not the biggest concern for most of our Clients. Many don’t even consider such matters at all. It is also a very well known fact that both platforms and the regulators are making keen headway during selection and onboarding processes, as well as during the lifecycle.

“However, concerned or not, in terms of cybersecurity I’m confident that we are one of the most secure and safe hedge funds in the market in respect to data and technological infrastructure.”

With the recent data showing how heavily targeted and poorly protected the finance sector is, it is apparent that cybersecurity is often omitted while thinking of a hedge fund. Avem Capital believes that this should be a priority for both Clients and the Hedge Fund Management – an integral part of its DNA. It is so much more than choosing a good antivirus software.

As Jupp highlights, there are numerous things to look out for when thinking of cybersecurity: “We do our best to prevent any possible attacks from any side, we like to be one step ahead of the game. At Avem Capital we introduced some of the most powerful, pro-active security management systems in the world, many of which are proprietary and reduce the potential fingerprint attacks available to commercial world applications.

“Our in-house logical security engineers are constantly monitoring numerous channels both regular web based and deep web based, in order to protect and defend against zero day exploits.” - says Jupp

Furthermore, Avem Capital also uses Data Loss Prevention systems, both in email and in document management, allowing to track the propagation of a document and secure it from intervention from a third party.

Another approach being adopted by Avem is that all infrastructure and mobile connected devices are patched at least weekly. Critical security patches are then tested against software and operating systems before being deployed on the day of notification. To ensure only secure devices enter the corporate network, Traders and Fund Managers are not able to operate any form of buying or selling over any device other than guarded desktop devices. Bring Your Own Device (BYOD) is not permitted to enter the corporate network at any point. To prevent this, Avem utilises a separate infrastructure, capable of detecting any potential threats or rogue devices.

With companies investing billions of dollars and private investors entrusting their life savings to hedge funds, the finance industry needs to step up their game when it comes to cybersecurity. The key is to always assume the worst case scenario and prevent possible threats by utilising all available tools to assure security.

(Source: Avem Capital)