In a rush to accelerate digital banking capabilities, banks and credit unions must think beyond the near-term. In this article, The Financial Brand shows 4 pandemic tech trends that will permanently alter banking. Read the original post at Security Boulevard: https://thefinancialbrand.com/103267/tech-trends-that-will-permanently-alter-banking-ai-cx-personalization-innovation/

More than ensuring security and preventing possible breaches, in this article, you will understand other essential reasons why an organization would want to find and remediate as many vulnerabilities as possible in application code during its development. Read the original post at Security Boulevard: https://securityboulevard.com/2020/09/the-importance-of-fixing-and-finding-vulnerabilities-in-development/

How could a central digital currency (CBDC) be designed of universal access? The new research from the Bank if Canada tries to answer this question, should the Bank secide to issue one. Read the original post at Bank of Canada: https://www.bankofcanada.ca/2020/06/staff-analytical-note-2020-9/

In this report, Deloitte introduces four scenarios for how the COVID-19 pandemic could accelerate or redirect the Canadian retail banking industry over the next one to three years. Building on several trends already in motion, the scenarios are built on important macro and banking sector uncertainties—those already evident, and others that are potentially plausible based on the severity of the pandemic and government actions. Read the original post at Deloitte: https://www2.deloitte.com/ca/en/pages/financial-services/articles/canadian-retail-banking-covid-19.html

The insurer Hiscox released a study revealing a six-fold increase in cybersecurity losses among businesses in the past year. The international study, using findings from 5,569 companies across eight countries, shows a $1.2 billion rise in cyber losses to almost $1.8 billion, with the most heavily-targeted sectors being financial services, manufacturing and technology, media and telecoms (TMT). Read the original post at Financial Post: https://digit.fyi/six-figure-increase-in-cybersecurity-losses-over-the-last-year-study/

The COVID-19 Pandemic took a toll on companies cybersecurity. With so many employees working from home, and most of them using personal devices that don’t meet corporate security standards, cybercriminals have been successfully exploiting the situation. Read the original post at Security Boulevard: https://securityboulevard.com/2020/06/covid-19-pandemic-takes-toll-on-cybersecurity/

BankingBook Analytics and Global Risk Institute presented Distribution Analysis of Information Risk (DAIR) at the MMF Symposium 2020, titled, The World Forum on Finance, Technology, Investment & Risk Management. The symposium was held at the Blue Mountain Resort. In his address, Luis Seco, Director, MMF emphasized the importance of innovation. He noted that innovation was the lifeblood of the economy and the main objective of leading universities. Startups, companies born out of an idea, toil, creative financing, and sweat were increasingly dominant players in the financial sector. The MMF Symposium also addressed the advances in financial innovation, paying special attention to the startups that were shaping our immediate future. BankingBook and Global Risk Institute were represented by CEO, Sohail Farooq MQF, MSc, MBA and COO, David Gong, MMF, CFA, and Executive-in-Residence, Lois Tullo, ICD.D, MBA, CPA, respectively. The team presented Distribution Analysis of Information Risk - a joint BankingBook and Global Risk Institute's research project that focues on cyber risk quantification. This was followed by a demonstration of BankingBook's proprietary DAIR application, its functionalities and key risk metric, and insurance outputs. Our team also reviewed the key challenges in developing a cyber risk control framework and its integration with organizational risk appetite; the application of DAIR in cyber quantification and integration with risk reporting.

Today the Office of the Superintendent of Financial Institutions (OSFI) set the Domestic Stability Buffer (DSB) at 2.25% of total risk-weighted assets, effective April 30, 2020. This reflects OSFI’s view that key vulnerabilities to Canada’s Domestic Systemically Important Banks (D-SIBs) remain elevated, and in some cases show signs of increasing. The key vulnerabilities include Canadian household indebtedness, asset imbalances, and institutional indebtedness. In addition, global vulnerabilities related to ongoing trade tensions and rising leverage are growing, which could increase the chance of a spillover of external risks into the Canadian financial system. Against a backdrop of accommodating low-interest rates and stable economic conditions, it is prudent to build additional resilience against potential shocks to the financial system. An effective capital regime ensures that banks are holding adequate capital to protect against risks to the financial system, while also encouraging them to use their buffers during times of stress to avoid asset-sales or drastic reductions in lending. This announcement is consistent with recent statements from the Financial Stability Board, which caution that “given rising global vulnerabilities, authorities should continue to assess whether existing buffers are adequate to support resilience, taking into account their domestic conditions and cyclical position.” OSFI remains committed to increasing the understanding of the purpose of the DSB to support the banks’ use of this capital buffer in times of stress.

Google’s new chequing account service could help banks in their battle for consumer deposits. The technology giant said last week that it is exploring how it can partner with banks to offer chequing accounts through its Google Pay app. Citigroup Inc. and a California credit union signed on as initial partners for the effort -- a move that could help them acquire extra customers as the industry contends with slowing growth in deposits. “It’s a war for deposits,” Betsy Graseck, an analyst at Morgan Stanley, said in a note to clients Friday. “An opportunity to deliver value to corporate customers and acquire incremental chequing accounts as well as a good business decision.” Deposit growth at the biggest U.S. banks slowed to 2.2% last year, the lowest level since 2010, according to data compiled by Bloomberg Intelligence. Consumers have increasingly flocked to newer, digital-only banks that come with flashy mobile apps and often offer higher interest rates for their savings. Citigroup has been making a push for consumer deposits after it debuted its national digital bank and restructured its U.S. consumer operations last year, bringing Anand Selva from the firm’s Asia business to lead the new unit. Average deposits in the firm’s U.S. retail banking arm have climbed 2.9% this year to $186 billion. With the Google partnership, Selva is leaning on a playbook that he learned in Asia, where Citigroup has forged partnerships with consumer companies including Paytm, India’s largest payments platform, and Grab, the ride-hailing app in Southeast Asia.

PRMIA Montreal hosted the 7th Annual Canadian Risk Forum. Senior risk professionals, industry experts, and scholars shared their thought leadership insight on Risk Management: Trending Practices Versus Practical Trends. Sohail Farooq, CEO, BankingBook Analytics and Lois Tullo, CRO, and CCO, Novera Capital/Global Risk Institute were joined by David Latour, VP, Risk Management, CDPQ to jointly present recently concluded research on cyber risk quantification.

The FSRA is very pleased to announce the membership for six new Stakeholder Advisory Committees (SACs) that will provide input and advice to FSRA’s Board of Directors and help to shape the future of financial regulation in Ontario. There was a strong response to the call for applications, with 265 submissions received from a broad cross-section of applicants from each sector. Many thanks to all our applicants for participating in this important initiative; your input and perspectives will continue to be highly valued as we continue our work together. The new SACs are another example of how the FSRA is committed to openness, transparency, and collaboration with stakeholders, and considering a broad range of perspectives when making strategic decisions.