Security VS. Customer experience, the anti-hacking paradox

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Since a few years the banking industry has experienced waves of digital transformations, which re-shaped its activities entirely. Online banking is getting more and more popular. All big players have developed online activities while some newer companies have created 100% online banking services. Online banking enables customers to access their bank account anytime and anywhere, has made processes more transparent, and has simplified the way people keep track and manage their finances.

The development of online banking is indeed a good thing for users who enjoy a customer experience they would have never expected before the digitalization of the industry. However, customers have not been the only ones to profit from this transformation, hackers and fraudsters also found ways to grandly benefit from it.

The number of cyberattacks is constantly increasing every year, for example in 2014 in the UK, online banking fraud increased by 71 percent. Everyday 230,000 sample malwares are created. Globally the estimated annual cost for cybercrime has reached 100 billion dollars. Hackers have found ways to penetrate banks security systems and ways to steal customers’ personal information. This explains, why overcoming this cyberattack challenge has become a number one priority for banks.

cyber

So far, banks have created and implemented different systems to improve the security of their processes, from increasing the number of digits of pin codes to implementing mobile transfer security texts or even implementing finger print security checks. Banks could decide to accumulate all of those processes one by one, to push those processes to the extreme (think about a 15-digit pin code) and then ask customers to go through all of them in order to do any transaction. This would certainly result in some kind of “Un-Hackable” system. But do customers really want to have to go through ten different security steps before being able to transfer 50€ to one of their friends? Obviously not. This would lead to decrease the customer experience of the user. Even if a bank claimed to be the most secure of all thanks to its never-ending security processes, customers would be likely to churn and subscribe to a less secure bank which offers easier to use processes.

All in all, bank’s security departments are now trying to solve this problem asking themselves about how much security can be implemented to both provide a positive customer experience and an irreproachable security system. When intending to find an answer to that question, it is good to keep in mind that hackers’ ways of operating constantly evolves and no matter what processes banks implemented those last years, it seems like hackers always find their ways through them. This is why banks like IBM are now focusing on threat protection operations, with systems that can disrupt threats in real-time instead. It is true that with the evolution of hacking activities, focusing in finding what may happen in the future sounds like a better strategy than focusing on what happened in the past.

 

References

https://heimdalsecurity.com/blog/10-surprising-cyber-security-facts-that-may-affect-your-online-safety/

https://securityintelligence.com/modernizing-digital-security-to-protect-banks-from-fraudblog/

http://www.pandasecurity.com/mediacenter/press-releases/all-recorded-malware-appeared-in-2015/

http://www-03.ibm.com/security/threat-protection/?ce=ISM0484&ct=SWG&cmp=IBMSocial&cm=h&cr=Security&ccy=US

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Will LinkedIn disrupt the recruiting industry?

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LinkedIn, the biggest professional social media platform

Today the social media platform for professionals, Linkedin, is counting more than 467 million users. It is present in 200 countries and sees the engagement of its users growing, recording an average of 106 million profile views per month.

Since a few years already, Linkedin has attracted the attention of Recruiting Companies who saw the potential residing in the platform early on, understanding how much of a powerful tool it could be for them to adopt Linkedin in their everyday activities.

 

Outdating recruiting company’s value offer?

Indeed, Linkedin enables workers and job seekers to publish an active and always up to date CV online that Recruiting Companies can freely access. The platform also offers the access to a filter system which allows anyone to sort professionals according to their skills, educational background or working experience.  We could therefore assume that recruiting company’s services are now outdated as anyone can use the platform to find the right candidate for a certain position.

However, against what one could think, so far Linkedin did not take any considerable share of recruiting companies’ customer base. By customers, we are here referring to those companies which decided to outsource their human resource activities to a third party, namely the recruiting companies.

 

Why didn’t that happen yet?

The LinkedIn filter system is not precise enough yet, if a human resource manager decided to look for a marketing specialist, who has a minimum of 5 years working experience, at least a couple of thousands profiles would appear. That is why only recruiting professionals can make sense of big pools of candidates and only then have the know-how of matching the right profile to the right position. Therefore, recruiting companies see this new professional social media platform as a tool with which partnerships could be established instead of seeing it as a direct competitor.

 

Linkedin future

Nonetheless, Linkedin filters are getting more and more precise, and users are getting more and more active, publishing content, following company’s actualities or even inspirational leaders. The day that Linkedin disrupts the recruiting company might not be that far away. Imagine what will happen once Linkedin will come up with smart filters, using AI to reveal the perfect candidate according to its likeliness of fitting a company’s culture, processing its center of interest and the whole range of activities it has taken on the platform.

When such an algorithm is developed, the recruiting power will be at the hand of anyone and it is certain that recruiting companies will start to lose a consequent part of their market shares. However many AI professionals argues that it will take decades before AI learns “common sense” and learns how to detect the actual potential, personality traits and emotions of a candidate.

What is your point of view, will a machine ever be able to perfectly match the right candidate with the right position?

 

References:

http://expandedramblings.com/index.php/by-the-numbers-a-few-important-linkedin-stats/

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