If you’ve already launched a digital bank or perhaps are thinking of developing one, you’ll realize early on that bolstering your risk and cybersecurity protocols are critical. Once you launch your platform offering online account opening you expose yourself to the world! Be prepared…
Here are some risk mitigation best practices to consider:
1. Encryption: Implement robust encryption protocols to secure sensitive customer data and transactions.
2. Multi-factor Authentication (MFA): Enforce MFA to add an extra layer of security, reducing the risk of unauthorized access.
3. Regular Audits: Conduct regular security audits and vulnerability assessments to identify and address potential weaknesses in your digital banking system.
4. User Education: Educate customers and employees about cybersecurity best practices to reduce the likelihood of falling victim to phishing or other social engineering attacks.
5. Fraud Detection Systems: Implement advanced fraud detection systems to monitor and identify unusual activities in real-time, helping to prevent fraudulent transactions.
6. Secure APIs: If your digital bank relies on APIs, ensure they are securely designed and regularly tested for vulnerabilities.
7. Incident Response Plan: Develop a comprehensive incident response plan to address and mitigate the impact of security incidents promptly.
8. Regular Software Updates: Keep all software and systems up to date with the latest security patches to protect against known vulnerabilities.
9. Data Backups: Regularly backup critical data to minimize the impact of potential ransomware attacks or data breaches.
10. Collaboration with Authorities: Establish a strong relationship with cybersecurity authorities to stay informed about emerging threats and receive guidance on best practices.
11. Customer Privacy: Prioritize customer privacy by complying with data protection regulations and obtaining explicit consent for data usage.
12. Network Security: Implement strong network security measures, including firewalls and intrusion detection/prevention systems.
13. Secure Development Practices: Adhere to secure coding practices during the development of digital banking applications to minimize vulnerabilities. Make sure all of your vendors comply.
14. Continuous Monitoring: Implement continuous monitoring systems to promptly detect and respond to any suspicious activities or anomalies.
15. Legal Compliance: Stay abreast of and comply with relevant financial and data protection regulations to avoid legal complications.
16. Risk Assessment: Conduct regular risk assessments to identify potential threats and vulnerabilities, allowing for proactive risk mitigation measures. Adjust risk levels accordingly based on experiences.
17. Supply Chain Security: Assess and ensure the security of third-party vendors and partners to prevent security gaps in the supply chain. Obtain SOC 1 & 2 audit data compliance results.
18. User Permissions: Implement the principle of least privilege, ensuring that users have only the necessary access rights for their roles.
19. Cybersecurity Insurance: Consider investing in cybersecurity insurance to mitigate financial risks associated with security breaches.
Remember, a comprehensive and proactive approach to cybersecurity is crucial for maintaining the trust and confidence of digital banking customers and bolstering the success of your new digital bank. However, finding the balance between integrating sufficient risk components and trying to minimize the “friction” in the customer journey (CX), can be a bit tricky!
Richard Rotondo- VP-Digital Banking Manager 770-235-9849
