Celent Model Bank 2016, Part VI: Case Studies in Security, Fraud, and Risk Management

by Joan McGowan, April 13, 2016
Case Studies
Global

Abstract

The vision for Celent’s Model Bank research, now in its ninth year, is to spotlight effective uses of technology in banking. The approach that Celent takes is to seek examples of best practices in technology usage which, in aggregate, would answer three questions below.

Every year we suggest five to eight categories and invite banks to nominate their technology initiatives. We review all nominations and recognize a number of them — up to four per category — with a Model Bank award.

In 2016, Celent accepted nominations in seven categories and awarded 18 initiatives. The case studies of winning initiatives are profiled in a seven part report series published today:

  1. Digital Banking Transformation
  2. Omnichannel Banking
  3. Digital Payments and Cards
  4. Corporate Payments and Infrastructure Modernization
  5. Cash Management and Trade Finance
  6. Security, Fraud, and Risk Management
  7. Legacy and Ecosystem Transformation

In Part 6, Celent profiles two award-winning initiatives in security, fraud and risk management.

  • Alfa-Bank – Central default platform for Basel II and III requirements
  • USAA – Multi-factor biometrics authentication options

Security, fraud and risk management across banks are very broad and deep areas. Banks have worked hard to manage the different risks across their institutions. It has been and will remain costly, time consuming and a top priority. Fortunately, data technologies and advanced analytics are enabling risk management techniques that will help risk managers make informed and holistic choices about risks.

“It is clear that the leading banks are starting to take tighter control of the different risks they face across their organizations. Banks are becoming more flexible, streamlined and holistic in their approach to managing risk and compliance,” says Joan McGowan, Senior Analyst with Celent’s Banking Group and author of the report.  “It was particularly notable in several of the submissions that banks are actively beginning to develop digital risk frameworks and appropriate tools and techniques for access to and use of new banking products and channels.”  

Nominations for Model Bank awards were accepted in late 2015. The Celent Banking team selected winners based on business benefits, degree of innovation, and technology or implementation excellence. Each Model Bank winning initiative is presented as a detailed case study within the report, including descriptions of business drivers, solutions, success metrics, and future plans.

This 26-page report contains two Celent Model Bank case studies, five tables and six figures.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Introduction

4

 

Model Bank Overview

4

 

Summary of Model Bank Award Winning Initiatives

6

Key Themes in Security, Fraud, and Risk Management

10

Alfa-Bank: Setting the Standards for Basel Compliance in Russia

12

 

Overview

12

 

Challenges and Opportunities

13

 

Solution

13

 

Results

16

 

Summary

17

USAA: Security Selfie, Native FingerPrint, and Voice Signature

18

 

Overview

18

 

Challenges and Opportunities

19

 

Solution

19

 

Results

21

 

Summary

21

Conclusion

23

Leveraging Celent’s Expertise

24

 

Support for Financial Institutions

24

 

Support for Vendors

24

Related Celent Research

25

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