Kris Kumar, SVP at Digital Realty, discusses MAS’ revised Technology Risk Management Guidelines, and the resultant impact on data centre provider-FI partnerships.
November 20, 2013 | Bertrand Pigeon
Banks undergo a transformative journey as they move away from an account-centric focus and adopt a customer centricity approach. The Holy Grail is the “customer of one” proposition which requires banks to have a strong technological infrastructure with a clear alignment of channel, product and customer analytics. Very few banks in the world boast this level of sophistication, with many still struggling to replace outdated systems, manage cost efficiencies, or come to terms with their respective regulatory requirements, whilst attempting to deliver products and services that meet customer expectations.
As financial institutions (FIs) increasingly rely on complex IT systems to cope with the myriad of daily functions, they are rendered vulnerable to threats such as cyber-attacks and system disruptions. With this in mind, FIs are expected to continue to deepen their technology risk management capabilities to better respond to IT security issues or system failures.
The Monetary Authority of Singapore (MAS), for one, revised its Internet Banking and Technology Risk Management (TRM) Guidelines in June 2013 to provide better guidance, whilst addressing existing and emerging technology risks confronting FIs in the city state.
According to Kris Kumar, senior vice president and regional head, Asia Pacific, at global data centre solutions and colocation provider Digital Realty, adoption of online and mobile technologies for core banking systems, as well as consolidation and virtualisation of hardware in the financial services industry has seen rapid increase over the past few years. The rapid evolution of technology has resulted in faster provision of new banking services. Kumar believes that “the use of technology can be considered as a competitive advantage to service customers better”.
With the cost of leasing data centre space rising – with FIs’ preference to keep their data nearby – Kumar identified “a move towards consoli...
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Categories: Data & Analytics
, Data Management
, Operational Risk & Security
, Risk & Performance
, Technology & Operations
Keywords: Kris Kumar
, Digital Realty
, Technology Risk Management
, Cyber Attacks
, System Disruptions
, IT Outsourcing