In 2010, people owned 12.5 billion networked devices; whilst it is estimated that by 2025 this number will have climbed to more than 50 billion.

While the IoT has already impacted sectors such as manufacturing and healthcare, it is still a nascent technology in the world of banking. Research has found that banks have still not implemented IoT technologies within their organisations or in their products or services. In the long term, however, this is set to change. Reports have shown that 40% of financial services businesses are currently experimenting with IoT and big data.

Given the wealth of statistical data which can be gathered from a range of devices within an IoT network, the applications of IoT and big data can go hand in hand. For example, retail banks can combine IoT and big data to offer increasingly personalised services to customers. Rather than providing a ‘one size fits all’ approach, banks can create personalised offers to customers by using IoT capabilities to analyse various aspects of its customers’ behaviour - including the regularity in which they visit merchants or purchase from them - and offer bespoke budgeting plans or financial products relevant to their lifestyles. Furthermore, the data from wearable payments technologies, for instance, could be used to help build detailed customer profiles and enable fraud detection. The same data could also enable banking institutions to build partnerships with brands that can push relevant deals through to banking customers in the area, enabling even closer relationships with customers and providing more useful perks.

The benefits of IoT services within the financial sector aren’t just limited to retail banks. Insurers can use IoT capabilities to aid interactions with customers and to accelerate and simplify underwriting and claims processing, as well as default prediction.

The benefits of IoT services within the financial sector aren’t just limited to retail banks.

It can also help insurance companies to determine risk more precisely. Automotive insurers, for example, have historically relied on indirect indicators, such as age, address, and creditworthiness of a driver when setting premiums. Now, data on driver behaviour and the use of a vehicle, such as how fast the vehicle is driven and how often it is driven at night, are available. These new data sets can help insurers provide premiums that more accurately reflect their consumers.

Another application of IoT within the financial sector that has the potential for huge implications is in trade finance. International trade flows are currently expensive and predominantly paper-based due to the inefficiency of the supply chain in moving goods. IoT within trade finance can be used to make these processes quicker by tracking movement, supply and demand. This can significantly improve the efficiency of the process by reducing the cost and risk for the enterprise. However, in order to have any meaningful impact on trade finance, there would need to be a large scale, global adoption of IoT - allowing every part of the ecosystem to be accounted for and creating a seamless process.

If key issues around cybersecurity can be overcome, the IoT presents a huge opportunity for the banking sector. And there will certainly be disruptors willing to provide that access - so the time is now for banks to start thinking about technology development that will take advantage of this before a competitor gets there first.

Authored by David Murphy, Managing Partner, Financial Services EMEA at Publicis Sapient.

Sharing personal data with organisations in the EU is essential to thousands of SMEs, and we know that the financial services sector is one of those that is most reliant.

When the UK leaves the EU, it will become what is known as a 'third country' under the EU’s data protection laws.

This means that UK and EU/EEA organisations will need to take necessary action to ensure that personal data transfers from organisations in Europe to the UK are lawful.

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The benefits of taking action now means UK organisations won’t be at risk of losing access to the personal data they need to operate such as names, addresses or payroll details.

Financial service businesses should review their contracts relating to these personal data flows. Where absent, they need to update their contracts with additional clauses so that they can continue to receive personal data legally from the EU/EEA after Brexit.

For most financial service businesses, this will not be expensive and will not always require specialist advice.

Digital Secretary Nicky Morgan said: “If you receive personal data from the EU, you may need to update your contracts with European suppliers or partners to continue receiving this data legally after Brexit.

“So, I am urging all businesses and organisations to check and ensure they are ready for Brexit.

“There are simple safeguards you can put in place by following the guidance available. UK and EU businesses should get on the front foot and act now to avoid any unnecessary disruption.”

Profile Pensions has investigated how employer contributions to pensions vary based on industry and gender and which sectors offer the best pension planning with high contributions from employers.

The Best and Worst Industries for Employer Contributions

The financial and insurance industry has been revealed as the most advantageous option for obtaining support. Although, as a sector renowned for its remunerative staff benefits, it’s no surprise that employer contributions are at an average of 9.5%. The education industry also fares very well in terms of pension options, with teachers receiving a rewarding 9.3% average contribution. This is followed by the electricity, gas, steam, and air-conditioning supply industry, however, this is significantly lower than the prior two with average contributions of only 7.1%.

At the other end of the scale, agriculture, forestry and fishing jobs offered the minimum legal contribution of just 2%, making it them worst occupations for creating a satisfactory pension pot. As an industry which is also climate dependant, this further defers individuals seeking a financially secure retirement after an unpredictable career. The accommodation and food services sector received a similarly low employer contribution of just 2.1%. While the arts and entertainment industry had the third lowest employer contribution, where it reaches only 2.5% on average. Although as a notoriously competitive industry, it’s anticipated that employers can get away with such a low contribution and a major factor to consider when navigating the risky world of entertainment.

Not All Pensions are Created Equal: The Gender Gap

Gender stereotypes still exist across industries with men receiving an overall higher contribution rate than women, at 4.6% compared with 4.4%. Education, as a female dominated industry, was the only industry where women outperform men in terms of employer contribution, where they receive 1.4% more annually. These high pensions also mean that teachers are likely to fare better in retirement than those in typically high-earning careers like real estate or finance. In technical areas, men acquired higher contributions and in the electricity, gas, steam, and air-conditioning supply industry, men had an employer contribution of 7.4% compared with 4.2% for women.

When looking at the gender differences, it’s clear an effort to increase the employer contribution in the male permeated professions should be made in order to incentify women to pursue these types of careers. Generally we know women are more likely to have lower incomes and more interrupted careers as a result of their caring responsibilities. Ensuring the pension contributions doesn't penalise them is as much of an organisational culture issue as it is a government policy issue.

Interested in Better Contributions? Here are the Jobs and Salaries Available in These Generous Sectors

We have crunched the numbers on the jobs available and average salaries for the most generous industries. The education industry has 102,805 jobs available in the UK, making teaching the most in high demand profession. When combined with the competitive employer contribution, it’s one of the best options for graduates seeking stability when finding a job and creating a secure retirement package. On the other hand, the administrative and supportive services sector has the lowest average salary bracket, equating to only £544 in contributions each year; an unattractive choice in terms of wages both during and post career.

The mining and quarrying industry offers the most enticing average compensation for it’s workforce with an annual salary of £39,51, although has only 2404 available positions in the UK each year. Similarly, the agricultural, forestry and fishing sector has an average income of £29.451. However it has the fewest number of jobs available and lowest employer contribution compared to any other industry, making it a very risky option in the long term.

With a lack of time putting pressure on workforce health and productivity, maintaining a healthy work/life balance can be tough. 

Jasper Martens, CMO of PensionBee shares with Finance Monthly three top tips on how SMB owners in the financial sector can support their workforce to ease time restraints and overcome a hustle and grind mentality.

1. Quit working the weekends

UK-wide, people are working longer hours and longer weeks, and while three out of five financial sector leaders started their small business for a better work life balance, little over half actually feel like they get it. Almost half of small business owners in the sector say that they work through holidays and their annual leave, more than any other sector.

Finding ways to free up weekends and holidays for the sake of health alone is an admirable goal, but it inevitably conflicts with other business goals that had put pressure on time and deliverables in the first place. Some of our fintech peers hold the belief that people should work seven days a week and increasingly long hours. We’re the opposite – when it comes to hustle and grind, our focus is on looking at the most time effective way to get the job done.

As a small customer-centric business, we do what is necessary to keep our customers happy and find that automating work flow saves a lot of time. By automating parts of the everyday, we’re able to spend on growing the business and improving our service. There’s something to be said about the industry on a whole that the financial sector on average feels more strongly than any other sector that digital transformation has a positive effect on their business.

2. Ditch the time-sinks

Admin is necessary, but often a huge time-sink. How can this be cut down? It’s a question you’ve most probably asked yourself to no avail - but there is a way.

Two thirds of financial sector leaders feel that Cloud based technologies are a necessity when it comes to time management. For us, it’s about automating reoccurring paths and connecting customer touch points. Putting time into understanding, tailoring and using a good CRM to get all the relevant information in the right place, in the right order and accessible to use, will ultimately return more time in the future

As companies grow, processes need to evolve and be flexible to meet new demands. Out-of-date processes only hinder growth and ultimately eat away at time that could be better spent elsewhere.

3. Listen to your team

As an SMB you’re in a great position to address issues of burnout or stress amongst your workforce, it’s a force for good that we can communicate with each employee on their individual needs.

We're tripling our size every year, faster than we anticipated, and with that success comes a need for a lot more thinking about the way we work as a company and especially on how we support our employees. As a small business it is tough because you just need to get the job done, but that mentality can also lead to higher stress levels and presenteeism. We have to pay attention to people, and talk openly about personal and mental health.

Time will always be a limited resource, and the pace of modern business is only likely to increase in the future. Yet, mental health now accounts for over half of all working days lost due to ill health in and is the most prevalent reason for sick days in the UK. Now, more than ever, we need to address the time pressures impacting on employees to provide support and mitigate more damage to employees and small businesses in the financial industry.

Whatever your educational background and chosen career path, if you’re looking for a job where money really matters, take a look at James Reed’s top tips.

1. Communicate your USPs

Competition for places in today’s labour market is fierce, particularly at the top financial institutions, which receive thousands of applications for entry-level positions or graduate schemes.

Making sure your CV stands out to whoever happens to read it is crucial. Bear in mind that it takes only seven seconds for a recruiter to assess your CV and decide if it will be passed on - even TV commercials have longer to grab your attention.

Be sure to communicate your USPs carefully. That means tailoring the content of your CV to the role you’re applying for. The finance sector encompasses a range of different roles and no two are the same. Whatever position you’re applying for, whether it’s for a wealth management role or a stockbroker, make sure your relevant skills are evidenced in your CV.

2. Showcase your knowledge

There are few industries that are less forgiving when it comes to not knowing your lingo. Workplace jargon may be unpopular elsewhere, but in finance, it’s essential to landing the job and progressing your career. Regardless of your educational background, as an interviewee you will be expected to know your Wall Street vocabulary: what makes dividend different to dilution; what do DCF and NPV stand for? Make sure you’ve memorised key terms that are likely to come up and have your finance glossary on standby.

Having a clear understanding of the finance sector will also help you understand what your dream role may be and give you the focus to achieve it. For example, you may have your sights set on becoming a financial adviser or working within wealth management. Understanding what makes these roles different will show that you have clear ambitions for the future.

Finally, make sure to keep up to date with the latest trends and market developments. The industry is constantly developing and changing - with new FinTech, regulations and consumer behaviour shaping the future of the market. Impress your interviewer by showing you’re ahead of the curve and passionate about the sector too!

3. Demonstrate and deliver

You never get a second chance at a first impression, so be sure to make it count. If you are to land an interview for your dream job, you must show why you are the best candidate for that particular role and be ready to demonstrate your skills practically in various interview scenarios.

So you can ace every number round on Countdown. Impressive, but don’t expect these credentials alone to help you sail through the application process. Be prepared to be put through your paces by undertaking a numerical aptitude test prior to, or during the interview process. You’ll likely be presented with financial information and expected to demonstrate knowledge of basic arithmetic. Don’t be alarmed, though. Much like your driving test theory paper, there is an abundance of free tests you can take online to practise before the real one.

4. Put your mindset to work

An employer wants you to prove that you have the right skills and mindset to do the job, and most importantly, that you will bring integrity and honesty to your work and the organisation.

Present yourself professionally both in terms of your physical appearance and how you portray yourself in an interview. This means going through your CV and application with a fine-tooth comb to look for any mistakes; showing you are able to hold a viable conversation in a professional environment; and having a clean online presence.

5. Flexibility is key

When job hunting within the financial services sector, it’s advantageous to approach the process with an open mind.

Lots of competition for roles means that you may not get your first or even second choice. Don’t worry if you don’t get your ‘dream job’ on your first try - there are plenty of other great organisations where you will learn a lot - and don’t be afraid to start small.

Be as open as possible to broader roles and be practical. With the right attitude and experience, you can and will quickly work your way up. Most managers accept that skills can be learned quickly if you have the right mindset. It’s impossible to know everything on your first day or even a year working in finance, but demonstrating positivity, enthusiasm and willingness to be flexible will allow you to go far.

As reported in the Financial Conduct Authority survey by Which?, the UK banking sector was hit by IT outages on a daily basis in the last nine months of 2018, demonstrating a higher frequency of major banking glitches than previously thought. Barclays alone reported 41 major incidents during those months, followed by Lloyds Bank with 37 IT failures and Halifax/Bank of Scotland with 31. Whilst TSB only reported 16 incidents, their week-long outage last year cost them around £330m as well as the longer-term impact of the clients lost.

Just minutes of downtime can significantly impact the financial sector, which holds the data and funds of millions of customers who are reliant on having access to these services and trust that their assets will be kept safe. To minimise the effects of a disaster and ensure business continuity in case of an IT failure or ransomware attack, businesses must invest in customised disaster recovery services which allow data to be brought back as quickly as possible in case of an outage. Diverting just a small proportion of the cybersecurity budget towards routine IT operations can deliver significant ROI in terms of increased operational resilience. Regular testing and optimisation of backup and recovery systems can deliver big rewards in terms of preventing issues and getting back up and running quickly should disaster strike.

As reported in the Financial Conduct Authority survey by Which?, the UK banking sector was hit by IT outages on a daily basis in the last nine months of 2018, demonstrating a higher frequency of major banking glitches than previously thought.

Safeguarding your data 

In the event of an IT failure or a ransomware attack, IT operators need a way to get systems back online and to do so fast. As noted by Gartner, the average cost of IT downtime is £4,400 per minute. The implications of IT failures go far beyond financial losses however, as they also damage the reputation of the business as well as lead to massive amounts of operative time lost. When a cyberattack or an IT outage takes place, it is not the failure or attack itself that causes the most harm but the resulting downtime of operations affecting productivity and credibility of the organisation. To avoid such losses organisations must put appropriate recovery systems in place. But to do so, they must first understand the IT systems they run and know what data they hold.

To stop the nightmare scenario from becoming reality, a solution able to recover business-essential data and get the most crucial systems back online in minutes is needed. A zero-day approach to IT architecture can do just that, as it allows organisations to prioritise workloads, with a planned recovery strategy of making sure the most important systems are brought back to first in case of an outage.

A zero-day recovery architecture is a service that enables operators to quickly bring workloads or data back into operation in the event of an IT failure or cyberattack, without having to worry about whether the workload is compromised. With the so-called 3-2-1 backup rule – meaning three copies of data stored on two different media and one backup kept offsite – zero-day recovery enables an IT department to partner with the cyber team and create a set of policies which define the architecture for what they want to do with data backups being stored offsite, normally in the cloud. This system assigns an appropriate storage cost and therefore recovery time to each workload according to their strategic value to the business, as all data is not created equal in terms of business continuity.

A zero-day recovery architecture is a service that enables operators to quickly bring workloads or data back into operation in the event of an IT failure or cyberattack, without having to worry about whether the workload is compromised.

This recovery system will only prove useful however when set up properly and tested thoroughly and frequently. Approximately 25% of organisations’ nightly backups fail – yet few will be aware of this due to a lack of recovery testing, meaning most businesses will have no idea what data has been lost in the process. With this in mind, operators need to perform disaster recovery testing on their data. Without testing in a controlled and simulated environment, it is impossible for IT and security teams to fully understand their systems’ integrity. Figuring out the data backup and recovery systems have failed after an IT outage has already taken place has no value – this needs to have been done before the worst has a chance to take place.

IT outages in the financial sector are becoming more frequent. In fact, the number of such incidents reported to the Financial Conduct Authority increased by 138% in the first 9 months of 2018, and are showing no signs of slowing down, making them a question of when, not if. With a large portion of the infrastructure in the financial sector relying on IT, minimising outages and limiting threats to this infrastructure should be number one priority to systems operators.

When you think about it, banking customers are leaving a trail of data when they conduct financial transactions – deposit activity, recurring payments, purchasing behaviours, borrowing activities and even when they just shop for financial services. All customer interactions – whether it is a point of sale, a tap on the screen, or a keystroke – generate insights on purchasing behaviour, clicks, searches, likes, posts and other valuable information.

Data usage has made an important difference in the changing landscape within financial services and the emergence of FinTech companies. Here in the UK, regulatory changes like PSD2 have created a new era of Open Banking where bank customer data will begin to flow amongst financial services providers. With this, the operating model for the traditional financial services companies is changing.

There are new entrant FinTech companies which have shown the ability to access and make sense of data in new and creative ways. Some of these start-ups are giving incumbents a run for their money not because they’re generating or accessing more data, but because they’re looking at it differently and using it in new ways. When FinTech companies get clarity about the use of data, make sense of it, organise and cleanse it, combine traditional and non-traditional sources, they can out-manoeuvre and out-innovate the incumbents.

There are three Vs which are fundamental to the management of data: volume, variety, and velocity.

There are three Vs which are fundamental to the management of data: volume, variety, and velocity. Given the increasingly competitive environment, evolving customer expectations, and regulatory constraints, financial services providers are seeking new ways to leverage data and technology to gain efficiency and a competitive advantage. The adoption of Big Data and new data management strategies is redefining the competitive landscape of financial services and companies that don’t have a strategy run the risk of losing market share.

To address this situation, financial services companies are investing in new and modern data management strategies that address both enterprise data and their Big Data assets. This new data environment must act at the speed of business, offering real-time insights that are created using massive volumes of data. New data-driven innovations include analytical tools such as machine learning and predictive analytics. These capabilities connect and leverage data across their entire enterprise and outside partners.

With all the changes taking place, there are many challenges and opportunities. Based on our experience working with many of the largest global financial services companies, we have observed a lot of focus and investment in these three following areas:

1. Creation of a Unified Financial Services Data Model.

This represents a standardised, multipurpose data model that creates a single, consistent view of the customer. This modern data environment is a business-driven data model that should serve all analytical requirements. It should also support all business domains such as marketing, risk management, product, customer experience, compliance, regulatory reporting, finance, and other functional areas.

It is critical that this environment is extensible and supports ongoing change. The activation of data that is stored must provide simple access for analytical applications as marketing, customer experience management, risk and other functions must respond in a real-time manner to create the desired customer experience or prevent fraud from occurring.

There are many other capabilities that can be delivered from this Unified Data environment. It is a foundational capability to address the rapid explosion of data, channels, devices, and applications.

2. While data collection is important, collecting more data is not always the answer. Ingesting the best sources and continuously testing them for accuracy and predictive capabilities is critical. New alternative sources of data are being created every day. While some of these sources can create some unique value, other sources may only add complexity to data management and cost without the desired return.

Deep mining of data can help predict needs and enable a much-improved customer experience. Improving the quality and accuracy of data that is collected, stored in the cloud, processed and analysed by artificial intelligence and deployed is important when creating new targeted offers and enhancing a customer experience.

Diligence in the areas of consumer privacy and security is and will continue to be paramount.

3. Diligence in the areas of consumer privacy and security is and will continue to be paramount. Consumer understanding of how their data is used often lags behind the pace of innovation, inspiring new demands from government agencies and consumer advocacy groups around the world. These factors compound the liability every financial services company faces when managing and activating consumer data.

Data security and privacy is an important issue and historically has been a strong point of differentiation for financial services companies, especially in light of the continued discussion around how Facebook and other social media companies manage data. There is and will always be an expectation that financial services companies remain a trusted guardian of data.

As financial services leaders realise that more trusted, connected and intelligent data contributes to their competitive position and survival, they now see data as an essential asset. This asset also requires investment to unlock value. Data should not be looked at as a driver of costs, but an important asset that will pay off handsomely for tomorrow’s financial services leaders.

About Scott Woepke

Scott Woepke is Head of Financial Services Strategy at global data, marketing and technology company Acxiom, where he leads a global team. He has over 30 years of hands-on experience in many facets of marketing, distribution, product, and technology strategy in the financial services and FinTech industries. His work includes working with many of the world’s largest financial services companies across retail/consumer banking, credit cards, investment services and payments.

 Website: https://www.acxiom.co.uk/

Research from Profile Pensions finds which industry’s employers offer the highest level of contributions – that is, how much they pay into pensions as a percentage of salary, including how that differs by gender.

No Tension Pensions

With a target pot of £38,000 to live modestly in retirement, and £247,000 to live comfortably, retirement planning is a crucial financial consideration across all industries. These sectors, however, offer the best pension planning with high contributions from employers:

• Financial and insurance work – With employer contributions of an average of 9.5%, finance is the best industry for getting support – and with an average salary of £30,403, it’s one of the best-paying options around. With 54,446 jobs on the market in the UK, there are a lot of opportunities going around.

• Education – Teachers are among those with the best pension options, with average contributions of 9.3%. The average salary of £22,146 means those contributions reach an average of £2,053.60 annually. Teachers are also in high demand, with 102,805 job openings available.

• Electricity, gas, steam, and air-conditioning supply – Significantly lower than the prior two industries with average contributions of only 7.1%, this industry’s £23,943 average salary only results in contributions of £1,703 – though this is still among the top options.

At the other end of the scale, however, agriculture, forestry and fishing jobs offered the minimum legal contribution, 2%, when the ONS statistics were last published in 2018 prior to the April 2019 rise.  While it’s scarcely more in accommodation and food services, at 2.1%. The third worst is the arts, where it reaches only as high as 2.5% on average.

The Gender Gap

While overall there was a slightly higher contribution rate for men than women – at 4.6% compared with 4.4% - in individual industries the range varies significantly.

The average difference in industries was marginally in favour of women, though only by 0.1%. Education, in particular, favoured women, with an average employer contribution of 9.3%, while men received only 7.9%.

In technical areas, however, men saw higher contributions. In electricity, gas, steam, and air-conditioning supply, for example, they saw 3.3% higher contributions, at 7.4% compared with 4.2%, and in manufacturing, there was a difference of 0.9% (5.3% to 4.4%).

Michelle Gribbin, Profile Pensions’ Chief Investment Officer, said: “The difference between industries is remarkable. While some you might expect, like financial and insurance industries, the high pensions in education mean teachers are likely to be better off in retirement than those in typically high-earning careers like real estate or logistics. Providing an interesting consideration for both employers and employees.”

“As for the gender differences uncovered, this is just another example of the gap between genders in the workplace, this time played out through pension contributions. 

Generally, we know women are more likely to have lower incomes and more interrupted careers as a result of their caring responsibilities. Ensuring this doesn't penalise them is as much of an organisational culture issue as it is a government policy issue. 

Firms should really start to get to grips with the fundamentals and fully adopt a policy of 'equal pay and pension contributions for equal roles', applied to both full time and part time workers. As a further step, firms regularly reporting on gender disparities in income and pension contributions really helps ensure good transparency and commitment on this issue.”

According to Lucy Franklin, Managing Director of Accordance VAT, this is disappointing, and has prompted responses ranging from outrage about the results to despair about the process, with a healthy dose of weak excuses thrown in for good measure.

In the criticisms and reporting, we run the risk of getting mired in the process, not the impact. Gender Pay Gap reporting represents an immense opportunity to identify if and where there are issues within a business. Visibility is the first step towards progress – and the gender pay gap is an issue we need progress on.

That said, I know that adopting new reporting obligations can be onerous – finance is full of filing and submissions, and Accordance is no stranger to mandatory deadlines. But in this instance, the benefits outweigh the administrative burden. Gender pay gap reporting offers the potential to identify, at every level of a business, where inequalities lie. Whilst this may appear a redundant statement, the lack of progress in gender equality in the workplace over recent decades can attest to the necessity of an issue being recognised, being visible, and being acted on.

This is why Accordance has made the decision to publish our gender pay gap statistics, despite being well beneath the legal threshold for reporting. I want Accordance VAT to play a role in changing a historically male dominated sector. Finance and professional services companies boast a huge number of talented, bright, determined women. Many of these women have great careers in support functions, but those shouldn’t be the only avenues open to them. Financial and professional services organisations are unfortunately disproportionately dominated by men in the more senior positions, and this needs to change. Reporting on our Gender Pay Gap may not affect the systemic issues, but it is a step towards addressing inequality more widely as well as setting the bar for other businesses. We want to lead the way in our sector, and that means voluntarily putting ourselves forward, celebrating our successes where we find them but being the first to highlight where progress is needed.

Publishing our results is just the first step. Having identified that our mean pay gap sits at 12.8% and our median pay gap at -3.5%, we know that we’re doing better than some of our larger competitors in the sector, but we can do more. Publishing our figures shows our commitment to tackling this gap, as do the range of measures we have put in place around recruitment, training, job shadowing, and progression policies. These policies don’t just relate to gender diversity, but also diversity in terms of ethnicity, culture, physical ability, health and mental health.

Fundamentally, greater equality in our sector is about much more than just an improvement in statistics. Finance drives the world – and thus has a significant impact on how lives are led. We need to attract the best and the brightest minds shaping this future – and we need people from different walks of life with a seat at the table. Women need to be as key as men in determining the shape and course of finance, and how it affects economies and shared futures. Again, publishing our statistics cannot affect global trends and practices, but it does demonstrate our commitment to equality, and our determination to reshape the sector we work in.

I urge other businesses below the threshold to join us – to publish statistics for staff and for the wider world, and to identify where progress needs to be made. Reporting and publishing on the picture of an organisation offers an immense opportunity to recognise where problems are, and in doing so shape and improve them for the benefit of everyone. Equality requires commitment and a will to change, but the benefits of a more diverse workforce will be felt both in and outside of the financial and professional services sector.

When my daughter was very young, she had a favourite dummy. One evening, just before bed, we were alarmed to discover the dummy was missing. As soon as we finally got her to sleep (no easy feat!) I grabbed my mobile, asked Alexa to find my daughter’s dummy, and immediately purchased two for next day delivery. I’m not sure who was happier—my daughter, who was reunited with her beloved dummy, or me, who was able to fix a problem easily, quickly, and painlessly, thanks to Amazon.

The problem with this scenario, of course, is that Amazon does much more than sell dummies. They’ve disrupted nearly every industry with the same level of speed, convenience and customer satisfaction, and now they’ve set their sights on the financial services industry.

If you’re not worried about this tech giant’s potential impact on financial services, you’re not paying attention. That said, there’s no reason to throw in the towel, hand over your bank and admit defeat. Rather, financial institutions can leverage their concern to drive innovation, focus on their strengths and fight back.

Let’s face it—Amazon is entering the banking space with many advantages. A massive pre-existing customer base, unlimited advertising space, and pre-built channels, such as Alexa, the Kindle, and Amazon.com, to name a few. Their biggest advantage, however, is their ability to innovate an experience. Look, for example, at the act of reading. Amazon transformed that experience by taking books, which they’d already mastered, and making them digital. What might they do with something like money, which is already an almost purely digital asset?

One misstep and Amazon could go the way of Facebook, which has spent years struggling with trust issues and data breaches.

Despite these benefits, Amazon faces some challenges. Although they’ve shown that they can mine my data to find the exact dummy I need quickly and efficiently, they have yet to prove they can be trusted with my bank account. One misstep and Amazon could go the way of Facebook, which has spent years struggling with trust issues and data breaches.

This is not to say that financial institutions don’t struggle with being seen as trustworthy by their customers. What this means for a bank, however, is different. Generally, people trust a bank to hold their money, but that trust is tested when they need to resolve a problem or avoid a fee. Trust also wavers by generation. According to a recent PwC survey, 72% of baby boomers trust their primary financial institution the most with their money, while only 53% of Generation Z felt similarly. Less trust means more opportunity for competitors like Amazon.

If banks want to stay ahead of Amazon, they must preserve the trust they have by improving on the things Amazon does well—operational efficiency, transparency, convenience, and a near maniacal focus on the customer.

First, financial institutions must put the right technology platform in place. Amazon is a pioneer of data-driven decision making. Everything from new products to new acquisitions is based on the stockpiles of data they’ve gathered from their customers. If financial institutions want to compete, they must be able to access and leverage their own stockpiles, rather than letting data sit in silos, inaccessible and unusable. To do this, banks must embrace both a single solution to store clean, ready to use data and a single platform that can actually deliver value from that data. Knowledge is power, but only if you know where to find that knowledge and how to use it.

Next, banks and credit unions must go digital. Today’s customers are used to a world with Amazon, Netflix and Uber, where they can get whatever they want, immediately and on-demand. Financial institutions must offer the same options by giving their customers a frictionless experience, whether in the branch or online. Remember, the customer should be at the centre of every interaction. If a process or system is cumbersome for the bank, you can guarantee the customer is going to suffer, too. Convenience is king, and nothing is more convenient than conducting your financial life whenever and wherever you want.

Financial institutions must design experiences for the customer.

At the same time, financial institutions should think innovatively about how they engage with their customers. If you have one platform, then digital isn’t a disjointed experience. You can easily transition from simple to complex products based on the customer’s needs. This means you can think like Amazon, and find ways to meet your customers where they are, in the channels they’re already using.

Finally, financial institutions must design experiences for the customer. You can be in all the right channels with the best platform in place, but if your journey is only designed to make it easier for the bank, it won't be very effective. If you look at FinTechs that have succeeded thus far, it's not because the product was cheaper. It's almost always because they gave their customers what they wanted faster. The biggest winners at this point are going to be those institutions whose maniacal focus on their customers leads to delightful experiences that don’t sacrifice the safety and soundness of the bank.

By tackling these challenges, embracing digital transformation and prioritising customer experience, financial institutions will be able to compete with Amazon and any other tech giants who may want to enter the banking sector. And if Amazon ends up losing sleep over their inability to take over the financial services industry, I’m happy to recommend a good dummy.

It is no secret that cybercrime continues to rise, due to a large extent from data breaches that have exposed our digital identity information, says Monica Pal, CEO of 4iQ.

Last year, 4iQ discovered 14.9 billion raw identity records that were stolen from companies and circulated across the web. The rate of identity breaches alarmingly increased by 424% since 2017, totalling 12,499 breaches. It’s no surprise that the likes of Google and Facebook made all the headlines—these tech giants have millions of consumers who were affected. However, one narrative that does not get enough attention, yet is vitally important, is that the businesses employing these consumers also suffer huge consequences due to the massive expansions in their risk profiles. Certain stakeholders (employees, customers, etc.) with poor cyber hygiene, or who have had their data exfiltrated in the past, are just as, if not more, threatening to an organisation than a cybercriminal with harmful intentions. The financial services industry arguably faces the most danger.

More than 25% of all malware attacks target the financial services industry - this is more than any other field, and to make matters worse, attacks are continuing to rise. The number of compromised credit cards increased by 212% in 2019 compared with the prior year, while credential leaks rose by 129% and instances of malicious apps increased by 102%.

Trojans are being used to attack financial services companies. ATM malware is being used to steal credit and debit card information. This issue isn’t exclusive to the United States, as we just saw a ransomware attack wreak havoc on Mexico’s major financial institutions. In February, a UK-based bank became the first public victim of SMS verification code interception. What’s more, cybercriminals can still leverage older methods such as DDoS attacks and phishing against the least prepared companies.

More than 25% of all malware attacks target the financial services industry - this is more than any other field, and to make matters worse, attacks are continuing to rise.

The increasing digitisation of financial services, via cashless payments with cards and mobile apps, has led to greater overall digital capital flow, and as more capital circulates in the digital marketplace, companies increasingly become more vulnerable to cyberattacks. Simultaneously, automation of cybercrime is more common. Crawlers can continuously and automatically sift through large amounts of data and search for vulnerabilities and exposed networks, sometimes even without user input, helping malicious actors acquire their targets more rapidly. And as these processes become more automated,  the ease with which it is done lowers the threshold of expertise required for operation, widening the opportunities to include bad actors with less technical expertise.

Aside from a reputational impact, data breaches incur high financial costs as well. Equifax’s infamous breach cost the company more than $600 million. JP Morgan Chase said it would spend $250 million annually to improve its digital security following its 2014 data breach. Estimates are that cybersecurity costs companies within the financial services industry, on average, about $2,300 per employee, while some firms pay up to $3,000. These numbers have tripled within the last three to four years – showing that companies are spending more on cyber and digital protection than ever before.

Yet, despite companies investing more to secure infrastructures, protect critical business data and assure customer privacy, cybercriminals remain undeterred and have responded to more sophisticated protections by rapidly evolving their method of attacks. What few companies consider, however, is the cumulative effects of other companies’ breaches which have already happened. An employee’s or partner’s personal information exfiltrated in one breach is often used subsequently to gain unauthorised access to another infrastructure, whether through password re-use or social engineering attacks. This is akin to locking the front door, turning on the alarm, yet leaving the garage open, and can be devastating to enterprise-level targets which stand to lose a trove of company IP, inside information about mergers and acquisitions, and more.

What few companies consider, however, is the cumulative effects of other companies’ breaches which have already happened.

Cybercriminals, clearly, possess a myriad of ways to outsmart and outpace normal security measures, so there needs to be an overhaul in this industry, placing more of an emphasis on thinking proactively and aggressively, unmasking bad actors’ identities and anticipating how our data could be at risk. Today, most leading companies understand the importance of executing traditional financial and criminal background checks for their employees. Too few leaders understand how to do this for the hygiene of employees’ digital footprints.

More and more, financial services companies are incorporating identity intelligence into their digital security. This involves tools and practices that are focused on scouring the Deep Dark Web for known exfiltration of identity-related data, from usernames and passwords to social security numbers and addresses. Identity intelligence helps large banks, credit card issuers and insurers understand and reduce what we call the “employee attack surface”, which is created by prior breaches.

These tools and practices can help companies avoid problems caused by:
Password Reuse: Criminals use credentials from prior breaches to access accounts on otherwise secure banking and credit card sites. A July study commissioned by 4iQ showed that nearly half of the consumers surveyed admitted to reusing passwords across multiple websites. Many financial services websites force regular resets – but some don’t, which is a glaring problem with a simple solution.

Weakest Link in the Chain: As we’ve seen in the news recently, third-party vendors play a key role in a company’s security. All players in the supply chain must be doing their very best to mitigate their risk profiles, and scarily enough, your company’s efforts can be all for nought if a “trusted” partner is not doing its part.

Employee Training (or lack thereof): Whether it’s a lack of training, willful negligence, or a bit of both, a company can invest millions of dollars on improving security measures only for an employee, no matter how high or low-level they may be, to make a costly mistake.

As cybercriminals have more tools at their disposal than ever before, technical threat intelligence about a company’s IT infrastructure is simply not enough. Organisations must adopt a more proactive, agile and strategic approach, beyond just playing “whack-a-mole” in response to an attack. Identity intelligence equips incident response and forensic professionals with the information they need to accurately anticipate attacks and catch warning signs even earlier, thereby avoiding a devastating attack for their company.

Some 55% of respondents of the survey carried out by deVere Group affirmed that they ‘regularly use financial technology to access and manage their money.’

883 people from the UK, Europe, Asia, Africa, Latin America and Australasia took part in the poll.

Of the findings, Nigel Green, deVere Group founder and CEO notes: “Even two or three years ago, that figure would have been significantly lower. The fact that today 55% of people polled globally use fintech solutions on a regular basis highlights the staggering rate of the digitalisation of our everyday lives.

“And it is speeding up. From self-driving cars, genetic bio-editing to AI, new technologies are beginning to impact every part of our lives. Our financial lives are no exception. We’re in a new age.”

He continues: “Fintech firms are filling the void left between what traditional financial services companies are offering and what customers are now expecting, especially in terms of customer experience.

“In broad terms, this means immediate, on-the-go, 24/7 access to, use and management of their money. It means personalised, on-demand services. It means lower costs.

“Fintech is already a major disruptive presence in the financial services marketplace. This trend is only set to grow as ‘digital natives’ - the first generation that grew up with the internet and smart devices – become ever more dominant in the workforce and in social and political roles.”

According to the data collected by deVere, emerging markets in Asia, Latin America and Africa are becoming the biggest growth areas for participation.

“This could be due to fintech typically offering more inexpensive solutions compared to traditional financial services. Also because these areas are home to many of the world’s 1.7 billion unbanked or underbanked population – those who don’t have access to or have limited access to financial institutions – and fintech allows this issue to be overcome,” affirms Mr Green.

Other standout trends: Around two thirds (67%) of those polled used fintech apps to send remittances and money transfers. 46% use financial technology vehicles to track investments and/or accounts. 28% use them for storing and managing cryptocurrencies.

The deVere CEO goes on to add: “Fintech – a major part of the so-called 'fourth industrial revolution' – is a positive force for three key reasons.

“First, it is meeting clear and growing client demand for on-the-go services.

“Second, it is speeding up the advance of financial inclusion across the world. Helping individuals and companies successfully manage, save and invest their money will only result in a better society for us all.

“And third, it gives firms the opportunity to diversify, cut costs, meet regulatory requirements and improve the client experience, which will help build long-term relationships and trust.”

Mr Green concludes: “The poll underscores that fintech is the new normal.”