Breaking digital gridlock : improving your bank's digital future by making technology changes now

319 Pages·2018·5.51 MB·English

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Breaking Digital Gridlock
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Breaking Digital Gridlock
IMPROVING YOUR BANK’S DIGITAL FUTURE
BY MAKING TECHNOLOGY CHANGES NOW
John Best
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LibraryofCongressCataloging-in-PublicationData:
Names:Best,John,1970–author.
Title:Breakingdigitalgridlock:improvingyourbank’sdigitalfutureby
makingtechnologychangesnow/byJohnBest.
Description:Hoboken,NewJersey:JohnWiley&Sons,Inc.,[2018]|Includes
bibliographicalreferencesandindex.|
Identifiers:LCCN2017060722(print)|LCCN2018000084(ebook)|ISBN
9781119421993(pdf)|ISBN9781119421924(epub)|ISBN9781119421955
(cloth)
Subjects:LCSH:Banksandbanking—Technologicalinnovations.|Banksand
banking—Informationtechnology.|Bankmanagement.|Information
technology—Management.
Classification:LCCHG1709(ebook)|LCCHG1709.B482018(print)|DDC
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Contents
Foreword xi
Preface xv
Acknowledgments xxi
Introduction xxiii
FiveMythsaboutGoingDigital xxiii
John’sStory xxvi
(cid:2) PartI Processes 1 (cid:2)
Chapter1 HowtoImproveInternalProcesses 3
RegulatoryGridlock 3
RegulatoryGridlockinAction 4
TheRiskSpectrum 5
FlawedBankProcesses 7
ContinualImprovement 9
ProjectManagement 10
Waterfall 10
Agile 11
WhentoUseAgileversusWaterfall 13
In-houseStaffandOutsideVendors 13
ProcessManagement 16
TeamOrganization:CentersofExcellence 17
CulturalConsiderations 18
PartII Technology 21
Chapter2 TechEvolutionversusTechRevolution 23
EvolutionaryTechnology 23
v
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vi Contents
EvolutioninBanking 25
TrueRevolution 27
TheFinancialRevolution 29
Chapter3 TheCloud 35
TheFinancialCloud 36
WhatAreYouAfraidOf? 39
ItIsHardtoControl 39
ItIsInsecure 40
DataWillBeSharedwithOthers 40
It’sUnreliable 41
It’sSuperExpensive 41
ThereWillBeStaffCuts 42
TheInternetCouldGoDown 43
ItIsaDirectExpense 43
WhataboutOurDataCenter? 44
TheCloudWon’tConformtoRegulatoryNeeds 44
TheCloudKillsBabySeals 44
(cid:2) TypesofCloudServices 45 (cid:2)
InfrastructureasaService(IaaS) 45
SoftwareasaService(SaaS) 46
PlatformasaService(PaaS) 46
MajorPlayersintheCloud 47
AmazonWebServices 47
MicrosoftAzure 48
GoogleComputeEngine 48
CommonalitiesbetweenEachofThesePlatforms 48
HowtoChoose? 49
CapitalOneintheCloud 49
StrategiesforMovingtotheCloud 49
Note 52
Chapter4 ArtificialIntelligence 53
ComputersWillBeTrainable 53
MachineLearning:FamiliarNames 54
ArtificialIntelligenceversusIntelligentAugmentation 56
TheAIThreat 67
Notes 70
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Contents vii
Chapter5 ApplicationProgrammingInterface(API) 71
WhyCreateanAPI? 71
GettingStarted 83
FortheTechnologyOrganization 83
FortheServicesOrganization 83
TheSecondStep 84
TheThirdStep 84
Chapter6 BlockchainandCryptocurrency 87
Bitcoin:ABriefHistory 87
Decentralization 88
Security 90
Blockchain 91
PermissionedNetworks 97
HowtoUseaDistributedLedger 99
PartIII Security 103
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Chapter7 SovereignIdentity 105
TrustFrameworks 110
EncryptionandDataSecurity 111
SovereignIdentityinPractice 113
WeaknessesintheCurrentIdentitySystem 115
Phishing 115
EMV 115
ConsumerPrivacyConcerns 116
AnOpportunityforFinancialInstitutions 116
Note 123
Chapter8 TheHackerThreat 125
TheArtificialIntelligenceThreat 127
PlanningfortheWorst 128
OperationAbabil 132
DDoSAttacks 133
BeAfraidWhenThingsAreDown.BeVery AfraidWhenThingsAreGoingWell 134
SecurityasaProcessofInnovation 136
TheEquifaxBreach 137
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viii Contents
ScenarioPlanning 141
Scenario1:NSABackdoor 141
Scenario2:Ransomware 143
Scenario3:CyberInfrastructureAttack 144
Scenario4:InternetofThingsBreach 145
Notes 147
PartIV People 149
Chapter9 TheDigitalChangeIsforEveryone 151
HumanResources 151
RemoteEmployees 151
Evaluations 153
CareerPaths 153
IncentivesandCompensation 154
Recruiting 154
Training 155
DressCode 157
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Facilities 157
Workspaces 158
Wi-Fi 159
Equipment 159
Meet-ups 160
Accounting:SoftwareDepreciating 160
Chapter10 WhoCanBreakGridlock? 165
CommonSymptomsofPeopleProblems 168
LackofConsistency 168
CostandTimeOverruns 168
HumanSolutions 169
ChiefDigitalOfficer(CDO) 169
ChiefAnalyticOfficer(CAO) 170
DataIsMoney 171
PartV Culture 175
Chapter11 CultureandInnovation 177
WhereDoesCultureStart? 178
CultureBreakdowns 180
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Contents ix
CultureandTalent 181
StepstoanInnovativeCulture 185
Collaboration 186
Communications 188
RewardsandEvaluations 191
AchievementversusAlignment 191
Notes 194
Chapter12 CultureandTechnology 195
ATaleofTwoCultures 195
HavingItYourWay—BYOP 200
PartVI Strategy 205
Chapter13 TheLongView 207
TheProblem:BankingandFinancialCompetitors 208
Threats:The–tions 209
(cid:2) InterchangeCompression 209 (cid:2)
Cannibalization 211
Digitization 212
Mobilization 212
Disintermediation 213
TheRealityofChange 213
ChangingFeaturesorServices 215
Cost 217
Service 217
Security 217
Features 217
HowSolutionsCanFail 218
Note 224
Chapter14 DigitalGovernance 225
ReviewProposedProductsandIntegration 228
ChangeControl 229
ReviewSecurity 229
Accountability 229
BusinessContinuity 230
ScheduleApproval 231
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x Contents
BuildversusBuy 231
FinalApprovalonRecommendedVendors 232
DataGovernance 233
DataQuality 236
DataSecurity 238
DataDuplication 238
DataEngineering 239
Chapter15 UsingDataAnalytics 243
LookAhead 244
CreditCardUsage 246
UsageMonitoring 249
Digital“Why”101 250
DigitalMarketing 252
Chapter16 BigDataandtheZombieApocalypse 259
ApocalypticRisk 261
StaffinginanApocalypse 261
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CreatingValue 264
DigitalInsightandIntuition 265
DataIsValuable 266
DataIsaDiscipline 269
TypesofAnalytics 273
Note 278
Conclusion 279
CulturalIssues 281
PeopleStrategy 282
ProcessChanges 283
Technology 284
Security 286
AbouttheCompanionWebsite 289
Index 291
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