ABA Banking Journal - September/October 2016 - (Page 47)

>>> CYBERSECURITY How Malware on Customer Devices Threatens the Bank BY CHEMI KATZ F or centuries, banks have invested heavily in delivering a safe, reliable banking experience to their customers. From the bull to the vault, banks have worked hard to create a sense of security to ensure loyalty over time. But as the customer preference shifts increasingly toward online and mobile, concentrating solely on the brick-and-mortar banking experience is no longer enough: banks must now focus creating a trusted, delighting and annoyance-free digital experience. Creating a safe and frictionless digital environment is the main challenge banks face as they re-evaluate their priorities and resources. Along with many new challenges and variables to consider, trust and loyalty are (as they have always been) the key elements in this comprehensive and extensive re-evaluation process. As banks work to remove the friction, a recent study from Bain and Company lays out the different ways in which customers engage with their banks and their likelihood to annoy and likelihood to delight: online is less likely to annoy, whereas mobile is the most likely to delight (see the visual below). And it's not only about "selling" via the digital journey. Banks need to focus on removing the friction and engaging customers early on in the digital journey, given that two-thirds of customers base their decisions on the quality of experience along their journey. Keeping all this in mind, there is a new element in this ongoing challenge that banks have to consider. According to research, 15-30 percent of all online and mobile users are infected with client-side injected malware, According to research, 15-30 PERCENT OF ALL ONLINE AND MOBILE USERS are infected with client-side injected malware, or CSIM, which poses a massive threat to trust and loyalty. It runs on customers' devices, thus remaining totally invisible to banks. RELIABLE DELIGHTFUL Mobile app routine DECREASING LIKELIHOOD TO ANNOY Online routine Mobile browser routine ATM Branch routine ANNOYING Online sales/service Mobile sales/service Phone Branch sales/service Chat/video VARIABLE INCREASING LIKELIHOOD TO DELIGHT aba.com/BankingJournal | ABA BANKING JOURNAL 47 http://www.aba.com/BankingJournal

Table of Contents for the Digital Edition of ABA Banking Journal - September/October 2016

PRESIDENT'S VIEW
UPFRONT
LEGAL BRIEFS
PICTURE THIS
COVER STORY
CECL FROM THE INSIDE: A CONVERSATION WITH FASB’S RUSSELL GOLDEN
WHERE ‘HABITS OF ECONOMY’ WERE SHAPED
HAT TIPS
CARD-LINKED REWARDS GIVE BANKS A COMPETITIVE EDGE
MARKETING
CYBERSECURITY
BANK-INSURANCE SALES
ABA COMPLIANCE CENTER INBOX
FROM THE STATES
CORPORATE SOCIAL RESPONSIBILITY
INDEX OF ADVERTISERS

ABA Banking Journal - September/October 2016

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