Banks, Security, and IOT
Richard: I’m Richard Dirstein.
Chris: Hi, I’m Chris Devlin with Omnivex.
Richard: We have some questions regarding the Internet of Things. So with regards to IOT, how does that effect a bank, and what should banks be aware of when they’re looking at security around the Internet of Things?
Chris: Well, that’s a loaded question. I mean, it’s everything. First off, anytime you go digital, you’re into the whole realm of cyber security. So that gets on the table right away. Depending on if you’re talking to consumers or businesses, there are very different reactions to it. The physical parts eliminated was great in the days when you could just have a vault, put your money in it, off you go. But now, as soon as you’re digital, you’re exposed to hacking and vulnerabilities and all those sorts of things. So there’s threats around that.
The IOT really adds a whole other layer, because it gets out of the networks. Banks have been stalwarts of security. Rightfully so. They’ve put really good security in place. The IT departments are sometimes considered slow, but they aren’t. They’re very steady and they want to make sure they take solid steps. Well, when you get rapidly destructive, growing technology disruptive like IOT, it’s going to introduce a whole lot of risks and elements that they need to look at.
Just the sheer amount of data that we get now on these devices, you’re getting into quantum growth. People can’t understand. Human beings don’t understand how much data is going to be available as the IOT expands. Our phones are feeding it. Our phones are feeding multiple applications, the devices, the sensors, the cameras, the lines. Everything we do is feeding data. So you’re getting into exponential growth, and humans don’t comprehend it.
I mean, I do this exercise with my sales teams all the time. If you had something that cost a penny a month and doubled it every month, it sounds pretty small. Right? It’s $0.02 next month, $0.04 a month after that, and so forth. I’ll give you that deal, as long as you can do 36 months. Well, if you do the math on that, you wind up at $323 million a month at the end of the day. It’s an incredible, astronomical amount of growth. We’re now taking data into compute systems, which is more built for this, that are doing it.
So there will be concerns about data, about volume, how it’s stored, where it’s stored. You’ll have two versions of it, one that delivers us a great world that works together, and can be connected and secured, and the other that kind of just breaks it. You see this often with departments within companies like banks, where marketing wants to do one thing, and maybe it’s too slow to go to IT. So they create something that either isn’t intelligent, and therefore not harvesting the value, or it exposes risk or is isolated and doesn’t connect.
So all these things are there. The technology stack is there. We now have infrastructure tools and IOT tools to be able to digest this. But you’ve got a whole culture, both corporately and government practice locally that isn’t ready yet for some of this stuff. So heck, we haven’t solved some of these worlds at a global level. So banks have been stalwarts of it. I think that they will be very responsible. But there are just a ton of security issues as soon as you go digital, and I know we’re going to more in other segments about some of those methodologies.
If you want to learn more about banks and the the Internet of Things, check out this video about Blockchain, IOT, and the Branch Experience. For more insights, please subscribe to our weekly email newsletter.