The Convergence of IAM, Cybersecurity, Fraud and Compliance

Cybersecurity, IAM, fraud and compliance will converge across financial institutions in the next five to six years. This transformation will follow a phased path, beginning with data integration, followed by tool alignment and eventually team restructuring.

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As banks move away from siloed solutions and toward unified platforms, leadership could shift to the CISO, CRO or head of compliance. The goal is a fully integrated approach that addresses operational gaps criminals often exploit.

“It will probably start with data, I think that is the most important. They really suffer from data being siloed, and that prevents them from having the big picture about financial crime,” said Pete Redshaw, analyst vice president of global financial services at Gartner.
“And whether it all comes under maybe the CISO, or maybe the CRO or maybe the head of compliance, who knows? But I think that is the kind of consolidation that will happen over the next five or six years.”

The shift is also driven by the rollout of real-time payments, which expose system limitations and strain back-office teams. Redshaw said banks must go beyond upgrading technology and focus on operational efficiency to handle increased alert volumes. “Changing the systems is not the silver bullet. They also need to improve productivity in the back office. For the case investigators, there are good systems available. These are very clever systems, but all they ever do is raise a yellow flag, and somebody needs to look at it and determine true positive from false positive.”

In this video interview with Information Security Media Group, Redshaw also discussed:

• The shift in smaller banks toward out-of-the-box machine learning models;
• The emergence of national-level exchanges for fraud intelligence sharing;
• The need for vendors to improve deployment, integration and post-live support services;

Redshaw is an analyst for the banking team within research and advisory at Gartner. He helps CIOs, bank execs and product leaders with their priorities and investments in digital technologies for banks. His principal coverage areas include: the CIO survey, banking payments fraud detection and anti-money laundering.