Dear readers,
Banking’s next star employee might not come from the banking world at all. Banking can be learned.
And, of course, to be successful, banks must compete in the war for talent.
Find out more in this latest issue.
Best wishes,
The MBA team
‘In terms of the information stolen, the survey found that 40% of breached data was stored in public clouds, which when breached led to higher costs—on average, $5.2 million per breach. One-third of organizations reported that at least some of their breached information involved “shadow data” being stored without the security team’s knowledge either in the cloud or on-premises, sometimes as part of unsanctioned artificial intelligence models. (Separately, the Treasury Department earlier this year released two reports on the use of cloud services and AI-specific cybersecurity threats in the financial sector. Both were drafted with input from the American Bankers Association.)’
‘Romance fraud scams exploit individuals seeking genuine connections online, leading to substantial financial and emotional damage. This underscores the need for proactive measures. Financial institutions play a critical role in helping to defend customers from fraud attacks. By enhancing fraud detection systems, educating consumers, leveraging technology and collaborating across industries, banks can significantly reduce the incidence of romance fraud, making the online world safer for both the heart and the wallet.’
‘A majority of credit card holders are using cashback cards while a growing number of consumers are switching to value cards, according to J.D. Power’s 2024 U.S. Credit Card Satisfaction Study released today. The survey found that 58% of respondents used cashback cards, 31% used points/miles cards and 11% used value cards.’
‘According to the White House, chatbots can be useful for answering basic questions, but when asked about more complex problems, “they frequently provide inaccurate information and give the run-around to customers seeking a real person.” The CFPB is planning to identify when the use of automated chatbots or automated artificial intelligence voice recordings is unlawful, including in situations in which customers believe they are speaking with a human being…. The administration also announced new rulemaking to crack down on customer service “doom loops” in which customers seeking assistance “are instead sent through a maze of menu options and automated recordings.” The CFPB will propose a rule that would require companies under its jurisdiction to let customers talk to a human by pressing a single button, the White House said.’
‘Digital banks – without physical branch networks – topped the survey of 17,000 personal current account customers in Britain, which was commissioned by regulator the Competition and Markets Authority. Monzo has been named the best bank in Great Britain for customer satisfaction, according to a major industry-wide survey. The poll of more than 17,000 personal current account customers placed Starling Bank in second place and JP Morgan’s Chase – which only launched in the UK three years ago – third. The survey, which was organised by regulator the Competition and Markets Authority (CMA) and is now in its seventh year, asked account holders to rate the quality of the services provided by their bank, including online banking, overdraft arrangements and their “in-branch” experience. Bottom of the list, in 17th place, was the Royal Bank of Scotland, which is owned by NatWest Group.’
‘In a similar fashion, the EU AI Act will likely serve as the starting point for future legislation beyond Europe. As AI continues to gain momentum and more cross-industry applications, leaders around the world will be prompted to implement guardrails around its usage and development. The U.S. has agreed to cooperate with the EU on AI initiatives, and the federal government has already published a blueprint for an AI Bill of Rights, a sector-agnostic framework outlining five principles and associated practices to guide the design, use and deployment of AI systems. This marks the first step toward a clear and consistent federal framework regulating AI, which has the potential to drive a common understanding and alignment across the country, encouraging confidence in the future of AI usage and development.’
‘Quantum computing technology has been developing rapidly and has demonstrated potential to break commonly used cryptography and encryption algorithms. This poses a major cybersecurity concern. In February 2024, MAS issued an advisory to all FIs on the cybersecurity risks associated with quantum technology, and provided recommendations for FIs to safeguard themselves against the identified threats, including to carry out proof-of-concept trials with quantum security solutions. More recently, MAS launched a quantum track under the Financial Sector Technology and Innovation Grant Scheme (FSTI 3.0) to provide funding support for quantum projects and capabilities.’
‘What most consumers, job seekers and students don’t realize is that banking opportunities are much more than what they see at a branch. One of the best selling points for banking as a career are the many different career paths that exist. Banks don’t just need lenders and customer service reps — we need marketers, IT gurus, credit analysts, financial professionals, investment advisors, cybersecurity experts, HR professionals, compliance practitioners and risk management whizzes, and so much more. Bankers can expect to face big, existential questions about how we work, which new tools we can use to help us work smarter, not harder, and how we continue to keep relationship banking alive in an increasingly digitized world. Banking is a noble profession — it offers the opportunity to truly be a part of the local community and to give back, whether by providing access to the credit that powers local economies, boosting financial literacy or providing philanthropic support.’
‘One significant emergent trend is the increasing interest in and utilisation of AI. AI offers promise through improved efficiency and cost reduction by automating routine tasks and enhancing decision-making processes. AI can quickly analyse vast amounts of data, providing insights that inform strategic decisions and identify market trends faster and more accurately than traditional methods, thus enhancing the customer experience. However, these benefits must be balanced with potential risks. The reliance on AI can make systems more vulnerable to cyberattacks and data breaches. There are also concerns about bias and fairness, as AI systems can inadvertently perpetuate existing biases. Ethical considerations around AI deployment, particularly accountability for mistakes or harm caused by AI, are crucial.’
Mobile users in the Czech Republic are the target of a novel phishing campaign that leverages a Progressive Web Application (PWA) in an attempt to steal their banking account credentials. The attacks have targeted the Czech-based Československá obchodní banka (CSOB), as well as the Hungarian OTP Bank and the Georgian TBC Bank, according to Slovak cybersecurity company ESET. “The phishing websites targeting iOS instruct victims to add a Progressive Web Application (PWA) to their home-screens, while on Android the PWA is installed after confirming custom pop-ups in the browser,” security researcher Jakub Osmani said. “At this point, on both operating systems, these phishing apps are largely indistinguishable from the real banking apps that they mimic.” ’
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Port Louis, Mauritius.
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Fax: (230) 213 0968
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