Independent Banker - July 2020 - 31

Next: State associations and ICBA are working together
In a bank, however, comfort and hominess must work
hand in hand with security, even if they're in opposition. To
better protect employees, data and other bank assets, Bank
of Idaho moved from traditional teller lines to the more
modern pod model with cash recyclers to increase security
in cash handling, Newgard says. Branch personnel on the
floor, he adds, have a " separate and secure space " away from
their teller station " designed to reduce or eliminate employees'
exposure when they are counting cash or submitting
[transactional] work. "
According to Steve Reider, president of Bancography,
a consultancy in Birmingham, Ala., new branch designs
are even " more compatible " with strong security than traditional
branches. Like Bank of Idaho, many banks are
increasingly using cash recyclers, which minimize the need
for the less-secure teller drawer. And smaller branches are
often replacing conventional large-scale vaults with modular
safes, which are more cost-effective and less risky.
Any kind of branch has traditionally been high on the
security risk scale for banks, since just about anyone can
walk in off the street, according to Adam Kohler, a system
engineering manager for Forescout Technologies, a cybersecurity
company specializing in device visibility and control,
in San Jose, Calif. But with an increasing number of connections,
from self-service kiosks to advanced ATMs, branches
now pose a cybersecurity risk as well.
" Today, we are seeing many different types of connected
devices in bank branches with various levels of network
access needed, " Kohler says. The teller needs to be able
to talk to critical banking systems, for example, but the
branch's coffee bar might require online access for customers
or to schedule maintenance. Meanwhile, operational
technology (OT) systems, such as HVAC and environmental
monitoring, are often connected to the same network, driving
the need for network segmentation in branches, which
Kohler calls " the next evolution of network access control. "
Security catching up to design
Branch security has changed in recent years to keep up with
new designs, as well as fraudsters. Some banks are starting
to use biometric methods for authenticating customers in
the branch, says Milwaukee-based Maria Schuld, a division
executive at FIS North America Banking Services Group.
Schuld says other banks are using ID scan devices and
" investigating proximity sensors and beacon technology
to quickly identify customers as they enter a branch to
verify their identity and alert branch staff to their arrival. "
These sensors would detect customers through their mobile
phone's location services or RFID tags embedded in debit
cards, then produce a quick customer profile to provide
How one bank keeps branches safe
in a crisis
COVID-19 concerns have added a wrinkle to branch
security and safety. Lockdown measures in many
states have forced many banks to close down
their lobbies, only allowing customers to bank via
drive-thrus or ATMs. While these limitations may be
temporary, some bankers expect the pandemic to
have a long-term effect on how branches operate.
" The safety and well-being of our employees is
more important than ever with the onset of this
unprecedented series of events tied to COVID-19, "
says Jeff Newgard, president and CEO of Bank of
Idaho in Idaho Falls, Idaho.
The community bank's business continuity
plan took effect in early March when virus made
its debut in Idaho, and Bank of Idaho closed its
lobbies to the general public. More spacious openfloor
plan branches have made social distancing
easier for staff who do come in, and the bank has
also " spread our employees out, using all available
space to create safe buffers, " Newgard says.
" While on the surface, this may not be viewed as
security, as we normally consider it in our world of
financial services, " he says, but " taking proactive
steps to secure and preserve the health and wellbeing
of our employees has made them feel more
secure in their jobs. "
verification, better security and enhanced customer service.
Penny Camp, executive vice president and chief people
officer at $1.7 billion-asset Bank Independent in Sheffield,
Ala., points out that some new branch models, especially
those featuring open floor plans, can present new challenges
to security and privacy. " We have to really think
about the conversations we are having [at the teller stations]
and maintaining a certain level of privacy when discussing
accounts and personal information, " she says. She adds that
the community bank has experimented with white noise
and sound-dampening ceiling panels.
Similarly, prior to the COVID-19 pandemic, new branch
designs may have included " fewer physical barriers between
bank employees and cash and customers, " says Eric Bonner,
vice president for physical security for Diebold Nixdorf, based
in Morgantown, W.Va. The most effective security includes
multiple layers, he adds, " whether it's physical or digital. "
Karen Epper Hoffman is a writer in Washington state.
independentbanker.org Q 31
http://www.independentbanker.org
Independent Banker - July 2020

Table of Contents for the Digital Edition of Independent Banker - July 2020
