How Do Community Banks Embrace Technology While Combating Cybercrime?
76% of ALL data breaches are financially motivated – making community banks the perfect target for cybercriminals looking to make a quick profit.
Verizon found that 76% of all data breaches are financially motivated rather than insider fraud or some other type of retaliation. And to make matters worse, organized crime groups are the ones behind 50% of all data breaches – meaning the people behind the attacks are experts in what they do. Community banks are the perfect target as they tend to have less budget and resources to commit to staying safe against attacks. Unfortunately, successful attacks on community banks can be the most costly attacks of all because:
- The potential for significant financial losses
- The significant damage to customer trust
Those who lose, financially or otherwise, in the aftermath of a data breach will almost certainly consider switching banks to protect their own interests – understandably so. If you’re tasked with managing your community bank’s risk, you know it’s a tough job – keeping track of all the operational, regulatory, and reputational threats facing your organization.
Should community banks embrace technology despite the risks?
The simplest answer: Absolutely. New banking technologies enable you to completely revolutionize the way you serve your customers. Ultimately, consumers nowadays are used to fast, efficient service. If you’re not able to provide this, another community bank will. But there are many benefits to embracing technology as a community bank. For instance:
- Reduce the need for branches and staff associated with running them as customers are able to leverage online and mobile banking options.
- Minimize costs associated with transactions as the cost of a mobile transaction is roughly $0.10 compared to the cost of a branch transaction at $4.25.
- Appeal to the younger generation of customers who are looking to manage their wealth with technology-savvy banks that provide self-service options.
Studies have shown that the top five technology concerns among community banks include the following:
- Maintaining compliance with regulations
- Protecting data and infrastructure
- Keeping systems available and recoverable
- Detecting and mitigating potential fraud
- Managing advancements in technology
How should community banks alleviate their technology concerns?
Community banking tends to have a more traditional approach wherein they’re focused on face-to-face relationships, however, it’s important to embrace technology to meet the needs of the modern consumer. Outsource IT Solutions Group works with community banks looking to alleviate their technology concerns. We’re able to:
- Create and maintain a cybersecurity policy that outlines proper password best practices, access controls, and other important information to keep your staff operating in a secure manner.
- Implement comprehensive security measures such as firewalls, anti-virus software, intrusion detection software, web content filtering, and other solutions designed to prevent unauthorized access.
- Assist with purchasing, implementation, and support of all technologies as we have access to better pricing, as well as a team of technicians who are knowledgeable on modern banking technologies.
Our team provides managed IT services wherein we take care of everything for a flat-rate monthly fee. We can help you embrace technology without worrying about the risks – giving you complete peace of mind knowing you’re keeping pace with advancements in terms of technology AND consumer demands.
Need an IT company community banks throughout Chicago trust? Call (630) 225-3284 or email us at info@osgusa.com. We’re here to help you embrace technology without worrying about the risks.
