ABA Banking Journal - September/October 2017 - 39

SPECIAL REPORT > TECHNOLOGY AND INNOVATION

Is Outsourcing IT Security
Right for Your Bank?
BY BILL JOHNSON

I

n today's dynamic landscape, the risks
faced by financial institutions are substantial.
Cyberattacks, computer system failures
and natural disasters are just a few of the
nightmare scenarios keeping bankers
up at night. And for good reason. Institutions
facing these situations risk losing critical data,
revenue from downtime, and most importantly,
their reputation.
Modern security threats are complex, sophisticated
and evolve quickly. It's not only the biggest banks that
are targets. No institution can count on a "security by
obscurity" approach.
Given its critical nature, entrusting the management of
security to a third party may seem counterintuitive. However,
it makes sense for many institutions, particularly when
resources are limited. Outsourcing can enable institutions to
access the specialized expertise, talent and resources needed
to effectively protect against cyber threats and manage a
complex technology infrastructure of servers, networks and
firewalls. It can also provide access to essential disaster
recovery and business continuity services. On a day-to-day
basis, third-party management of IT security can free internal
staff and resources to focus on other high-value initiatives.
Here are five areas for financial institutions to consider when
evaluating their IT security approach:

1.

What type of expertise do you have in house? Does
your IT team have the expertise and number of people
needed to manage security threats? Are they up to date on
the latest tools and training? Outsourcing offers financial
institutions access to expertise and resources dedicated
exclusively to security and allows a smaller staff to focus on
key areas. Institutions will still need IT management in house
to help manage the provider.

2.

How complex is your IT environment? As the number of
locations, servers and devices increases, the demands

on staff are magnified. Phishing and social
engineering tactics are increasingly carried
out via smartphones and email. Security
must be addressed across all entry points
and endpoints.

3.

Can you easily handle regulatory
requirements and reporting? Regulatory
compliance is ever-changing and complex, and can consume
a significant portion of employees' time. Keeping up with
regulations often requires a financial institution to modify
tools, processes and reporting for compliance. An IT security
provider will be able to help financial institution staff manage
these requirements while keeping up with day-to-day
operations.

4.

Are you prepared for a disaster? In the event of a
hurricane or other disaster, the ability to manage and
monitor branch systems from a remote location can help keep
staff safe. In the event that data is wiped out of a primary
location, data recovery services can replicate the data onto
other servers so the information is not lost.

5.

How well can you detect a threat? Shared knowledge
can be a significant advantage when it comes to
detecting phishing, malware and penetration attacks, as well
as attempted cyber breaches. Using combined insights from
the provider's many partners allows organizations to better
predict, detect and manage threats. It can also help to detect
internal breaches that may be difficult to detect through
internal monitoring alone.
Financial institutions have unique needs related to their
regulatory oversight, branch structure and importance to their
customers and communities. If your financial institution does
choose to employ outside IT security expertise, maintaining
the security of sensitive data and providing the best
experience for your staff and customers should remain the
ultimate goal.
BILL JOHNSON is vice president for Sentry Performance Solutions at Fiserv.
aba.com/BankingJournal | ABA BANKING JOURNAL

39


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Table of Contents for the Digital Edition of ABA Banking Journal - September/October 2017

CHAIRMAN’S VIEW
UPFRONT
PICTURE THIS
LEGAL BRIEFS
POWER UP PROFILE
THE TOP FINTECH TRENDS DRIVING THE NEXT DECADE
PLUG AND PLAY: FOUR WAYS TO LEVEL UP YOUR MOBILE BANKING APP
MAKING FRIENDS WITH FINTECH
LOOKING AT FINTECH THROUGH THE LEGISLATIVE LENS
LET’S TALK PAYMENTS
IS OUTSOURCING IT SECURITY RIGHT FOR YOUR BANK?
THE CECL RIPPLE EFFECT
FROM YOUNG AMERICANS TO ENTREPRENEURIAL CITIZENS
FINDING THE PERFECT NICHE
THREE ELEMENTS OF BANK LEADERSHIP
REAL ESTATE LENDING
ABA COMPLIANCE CENTER INBOX
WEALTH MANAGEMENT
FROM THE STATES
CORPORATE SOCIAL RESPONSIBILITY
INDEX OF ADVERTISERS
FROM THE VAULT
ABA Banking Journal - September/October 2017 - Intro
ABA Banking Journal - September/October 2017 - bellyband1
ABA Banking Journal - September/October 2017 - bellyband2
ABA Banking Journal - September/October 2017 - cover1
ABA Banking Journal - September/October 2017 - cover2
ABA Banking Journal - September/October 2017 - 3
ABA Banking Journal - September/October 2017 - 4
ABA Banking Journal - September/October 2017 - 5
ABA Banking Journal - September/October 2017 - 6
ABA Banking Journal - September/October 2017 - 7
ABA Banking Journal - September/October 2017 - CHAIRMAN’S VIEW
ABA Banking Journal - September/October 2017 - 9
ABA Banking Journal - September/October 2017 - 10
ABA Banking Journal - September/October 2017 - UPFRONT
ABA Banking Journal - September/October 2017 - 12
ABA Banking Journal - September/October 2017 - 13
ABA Banking Journal - September/October 2017 - 14
ABA Banking Journal - September/October 2017 - 15
ABA Banking Journal - September/October 2017 - PICTURE THIS
ABA Banking Journal - September/October 2017 - 17
ABA Banking Journal - September/October 2017 - LEGAL BRIEFS
ABA Banking Journal - September/October 2017 - 19
ABA Banking Journal - September/October 2017 - POWER UP PROFILE
ABA Banking Journal - September/October 2017 - 21
ABA Banking Journal - September/October 2017 - THE TOP FINTECH TRENDS DRIVING THE NEXT DECADE
ABA Banking Journal - September/October 2017 - 23
ABA Banking Journal - September/October 2017 - 24
ABA Banking Journal - September/October 2017 - 25
ABA Banking Journal - September/October 2017 - 26
ABA Banking Journal - September/October 2017 - 27
ABA Banking Journal - September/October 2017 - PLUG AND PLAY: FOUR WAYS TO LEVEL UP YOUR MOBILE BANKING APP
ABA Banking Journal - September/October 2017 - 29
ABA Banking Journal - September/October 2017 - 30
ABA Banking Journal - September/October 2017 - 31
ABA Banking Journal - September/October 2017 - MAKING FRIENDS WITH FINTECH
ABA Banking Journal - September/October 2017 - 33
ABA Banking Journal - September/October 2017 - LOOKING AT FINTECH THROUGH THE LEGISLATIVE LENS
ABA Banking Journal - September/October 2017 - 35
ABA Banking Journal - September/October 2017 - LET’S TALK PAYMENTS
ABA Banking Journal - September/October 2017 - 37
ABA Banking Journal - September/October 2017 - 38
ABA Banking Journal - September/October 2017 - IS OUTSOURCING IT SECURITY RIGHT FOR YOUR BANK?
ABA Banking Journal - September/October 2017 - THE CECL RIPPLE EFFECT
ABA Banking Journal - September/October 2017 - 41
ABA Banking Journal - September/October 2017 - 42
ABA Banking Journal - September/October 2017 - FROM YOUNG AMERICANS TO ENTREPRENEURIAL CITIZENS
ABA Banking Journal - September/October 2017 - 44
ABA Banking Journal - September/October 2017 - 45
ABA Banking Journal - September/October 2017 - 46
ABA Banking Journal - September/October 2017 - FINDING THE PERFECT NICHE
ABA Banking Journal - September/October 2017 - 48
ABA Banking Journal - September/October 2017 - 49
ABA Banking Journal - September/October 2017 - 50
ABA Banking Journal - September/October 2017 - THREE ELEMENTS OF BANK LEADERSHIP
ABA Banking Journal - September/October 2017 - 52
ABA Banking Journal - September/October 2017 - 53
ABA Banking Journal - September/October 2017 - REAL ESTATE LENDING
ABA Banking Journal - September/October 2017 - 55
ABA Banking Journal - September/October 2017 - 56
ABA Banking Journal - September/October 2017 - 57
ABA Banking Journal - September/October 2017 - 58
ABA Banking Journal - September/October 2017 - 59
ABA Banking Journal - September/October 2017 - ABA COMPLIANCE CENTER INBOX
ABA Banking Journal - September/October 2017 - 61
ABA Banking Journal - September/October 2017 - WEALTH MANAGEMENT
ABA Banking Journal - September/October 2017 - FROM THE STATES
ABA Banking Journal - September/October 2017 - CORPORATE SOCIAL RESPONSIBILITY
ABA Banking Journal - September/October 2017 - INDEX OF ADVERTISERS
ABA Banking Journal - September/October 2017 - FROM THE VAULT
ABA Banking Journal - September/October 2017 - cover3
ABA Banking Journal - September/October 2017 - cover4
ABA Banking Journal - September/October 2017 - outsert1
ABA Banking Journal - September/October 2017 - outsert2
ABA Banking Journal - September/October 2017 - outsert3
ABA Banking Journal - September/October 2017 - outsert4
ABA Banking Journal - September/October 2017 - outsert5
ABA Banking Journal - September/October 2017 - outsert6
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