Press Releases

By: Ernst & Young to Unveil White Paper Created Exclusively for #CLAB2017
  • 71% of customers globally, and 80% in Latin America, believe that technology facilitates having products with several financial institutions
  • The pace of evolution in the market is so intense that staying static is equal to staying behind
  • The FinTech industry will transform banking as we know it; it will be the collaboration – not the competition – that is the catalyst of that transformation
  • The three priorities related to cybersecurity are: prevention of data leakage or loss, business continuity with computer support, and user access and identification management

Miami, August 16, 2017 – “Challenges and Trends of Digital Transformation for the Financial Services Industry,” by Ernst & Young (EY), analyzes digital transformation, technologies that drive innovation, FinTech as a driver of transformation in the banking value chain, and cybersecurity.

Digital Transformation

According to EY, digital technology has become so important for financial services customers that they consider it essential for an “excellent” experience. The firm encourages financial services providers to optimize the variety of communication channels, so as to serve both the younger, digitally-oriented consumers, as well as the older generations that value physical relationships.

The Global Consumer Banking Survey (EY 2016) revealed that 71% of customers globally and more than 80% in Latin America believe technology eases working with financial institutions. However, surveys also show that 36% of clients are willing to share more personal information if that helps banks anticipate their needs more accurately.

As customers gradually replace the use of traditional channels with digital ones, EY believes branches will not disappear, but will facilitate more specialized services to be offered to the client, and thus the concept of the “traditional channel” will be renewed.

The white paper suggests corporations should consider alliances to offer a broader ecosystem of services, seeking a balance that would allow them to own some products or services, with FinTechs to offer others, and both to benefit from alliances. Finally, organizations must promote an innovative culture within their organization, cultivating multifaceted teams that seek collaboration and always offer the best possible service to the client, regardless of the channel.

Technologies that Drive Innovation

As EY will explain in the launch of this study exclusively design for CL@B, firms in the financial industry can benefit from using robots and artificial intelligence machines that can perform tasks of different complexities quicker and without errors.

Robotic Process Automation (RPA), one of the most prominent technologies in financial innovation, can be integrated into existing interfaces without requiring changes to systems and can reduce the cost of manual high frequency operations by 40% or more. At the same time, RPA improves the quality of service. “It is important to note that RPA technology is self-financing, the immediate savings obtained with RPA can be reinvested in other measures of profitability,” says the document.

“There is growing recognition that analytics can be applied across all areas of the business, and if not, reinvent it,” said Chris Mazzei, EY Chief Analytics Officer and Emerging Technology Leader. “And while many companies started analytics to improve today’s processes, they are now expanding to rethink what they sell, how they sell it, who they sell it to, and how to differentiate themselves from their competition.”

Technologies driving financial innovation are in different stages of maturity and “without a doubt, many have the potential to significantly change the industry in the coming years.” Competition, technology, big data, regulations, and advanced analytics based on machine learning are forcing a new focus on organizations, and – according to EY – the speed of change in the market is so intense that staying static is equal to staying behind.

EY thinks Financial Institutions “need to understand the technology in order to make informed decisions about how and when to respond to technological advances and changes in processes and models of business that this will bring.”

FinTech as a Driver of Transformation in the Banking Value Chain

The first EY Fintech Adoption Index study, conducted in 2015, wanted to know how many of the digitally active consumers already used a FinTech regularly. The answer was that 16% of them had used two or more FinTech services in the previous 6 months. This study also indicated that adoption could double in the near future, but the recent 2017 study reveals that this has happened in as little as 18 months. The growth of the industry has strengthened the common thinking that FinTech will transform banking. However, it will be collaboration – and not competition – that is the main catalyst of that transformation.

Building this ecosystem will also require substantial commitment to regulators, who increasingly expect banks to be able to ensure that providers and third parties can offer the same level of capability and security of processes as banks themselves.

FinTech’s global industry is growing rapidly, driven by a powerful mix of start-ups and technology players. Banks that want to tap into this potential must act now to find ways to engage with these innovative organizations and build value-creating partnerships. Unless Banks and FinTech improve their work together, they will not receive all the benefits of innovation.

Cybersecurity: Who is responsible?

Lastly, EY´s White Paper for CL@B notes that the customer who uses the service channels of a financial institution must understand how each channel works, including the security aspects of information to be able to use them correctly. On the one hand, it is the responsibility of the user to learn, but it is also the responsibility of the financial institution to provide the means for this learning to be effective. Knowledge and understanding of the client about information security will allow him/her to recognize situations that do not seem normal and take appropriate action.

According to the EY Global Information Security Survey, at security level, the three priorities for banking companies are: Preventing data leakage or loss; The continuity of the business with computer support; and Access management and user identification.

By: “You must have an incident response plan practiced and in place prior to the actual cyber security incident occurring.”

Robert Villanueva, EVP, Q6 Cyber and veteran of the US Secret Service, specializing in international cybercrime, network intrusions, and identity theft breaches will be participating in CL@B 2017, the Financial Technology and Innovation Conference starting Augut 30th in Miami. Get a scoop at his insigths before you see him life.

What should we expect in the next 5 years? How is the environment going to change (crime and protection)? 

During the next 5 years you should see more of the same types of targeted cyber-attacks, threats, malware proliferation and network intrusions that are conducted daily now on the private sector. Distributed Denial of Service Attacks (DDOS), Business Email Compromises (BEC) and Ransomware are a multi-Billion Dollar fraud industry for cyber criminals and they will not cease. I do see the private sector taking a more proactive approach in combatting and disrupting some of this targeted criminality on their networks.

What should a financial services corporation beware more of: domestic cybercriminals or big international networks?

International Eastern European cyber criminals are by far the principal and most significant threat to the Financial Infrastructure of the U.S.A. and the rest of the Americas. As the former head of the Cyber Intelligence Section for the U.S. Secret Service, I have seen an escalation of the professionalism and actual “hacker for hire” of this Eurasian miscreant online community throughout the years. Now, while working in the private sector at Q6 Cyber (an international cyber threat intelligence company), I am witnessing a substantial “uptick” of more transnational criminal collaboration and online communication between Eastern European and Latin American cyber threat actors via private forums.

Which are the industries most often targeted by cybercrime and why?

The Financial, Retail, Hospitality and Heath Care Sectors are the ones most often targeted by international cyber criminals. All these industries deal with payment cards, financial data and PII information and obtaining this information is usually a cyber criminal’s primary objective. Any sort of financial data (i.e online bank, brokerage or retirement accounts) is also frequently targeted by sophisticated malware for collection and sale on the Dark Web.

Which are the ones that spend the most in protection? How much should a company spend in protection?

Larger Financial Institutions, Retail Establishments and Fortune 500 Companies have more financial resources and therefore, will invest more in comprehensive cyber security and cyber intelligence programs. Every financial institution, company and/or business (no matter the size) should factor cyber security costs for prevention and security incidents into their yearly budget.

What percentage of cybercrimes could have been / can be prevented by protection, and what does that protection consist on?

Cybercrime can be mitigated and disrupted through cyber security planning and proactive cyber intelligence. Basic “cyber security hygiene” (antivirus, strong passwords and updates) are essential and just the start.  Companies must hire well qualified/experienced individuals and vendors to enhance their cyber security posture to be more secure. The regular training of company staff as well as network penetration testing (by an external professional) should be a consistent and annual event.

The “weak link” of cybercrime mitigation is most frequently the end user (i.e. customer) who’s education level and cyber security awareness varies considerably. Often times, their financial information is compromised through malware infections on their personal computers. This stolen financial data (including online log in credentials) eventually winds up on the Dark Web and then is trafficked by international cyber criminals. This is where a reputable Cyber Intelligence vendor comes in and attempts to disrupt the criminal activity before the fraud is incurred by the financial institution.

Is the cooperation between corporations, cyberpolice, governments, other authorities good enough or it needs changes, and which ones?

I have seen an increase in collaboration between the private and public sectors during the past few years. It is getting better, but there is a lot of room for improvement in both sectors. Remember, often times cyber criminals are not targeting a specific company, but a sector. By working together, you can combine your knowledge and resources to be more prepared with the actual current trends affecting your business sector so you can take appropriate action before you become a target.

Cooperation between international law enforcement agencies that investigate cybercrime is usually very good. Although depending on the country, timely and complete cooperation is sometimes challenging. This also varies on the political climate, level of cybercrime knowledge/education and antiquated laws in foreign countries that do not recognize cybercrime yet as an independent offense.

Is the fight against cybercrime a priority in all the different countries and companies in the Americas?

Unfortunately, many countries and companies in the Americas lack the resources or are just reactive in properly securing their networks from sophisticated international malicious actors. It is important to seek assistance from qualified vendors with the expertise in the cyber security and cyber intelligence field. Please do your due diligence on all vendors prior to engaging with any of them.

You are participating at the CL@B conference in Miami. In your opinion, why are these events important to the financial community in Miami?

Events like the CL@B and participating in organizations like FIBA are very important to the local South Florida financial sector and community. Besides networking opportunities, the CL@B conference brings both education and awareness of the current areas of concern to members of the financial sector.

What is “the message” for our readers?

Take the time to properly evaluate your company’s cyber security plan and make cyber intelligence an important component of it.  Be “proactive” and do not wait for any fraud issues or an incident to occur.

Remember, it is in not a matter of “if” you will have a computer network security incident, it is a matter of “when” it will happen. You must have an incident response plan “practiced and in place” prior to the actual cyber security incident occurring.

 

About Robert Villaueva

Robert Villanueva is a 25-year veteran of the US Secret Service, specializing in international cybercrime, network intrusions, and identity theft breaches. He is Founder of the US Secret Service Cyber Intelligence Section. He led a regional electronic crime task force, with more than 800 members of the private sector, academy and police forces. Robert is a member of the steering committee of several organizations and universities.

By: CL@B 2017: How emerging technologies and innovation are disrupting the banking industry

Over 1,000 financial services industry executives and Corporations will gather in Miami, from August 30th to September 1st, to discuss themes such as digital transformation, financial inclusion, cybersecurity and blockchain.

Miami, August 10, 2017 – Organized jointly by the Florida International Bankers Association (FIBA) and the Federación Latinoamericana de Bancos (FELABAN), CL@B is the biggest and most prestigious financial technology and innovation conference in regards to Latin America.

The impact of innovative start-ups on the banking and financial institutions is undisputable. Competitive threats are coming from everywhere at a time in which customer behavior is changing fast. If traditional institutions are to survive the digital era, they must embrace innovation and find ways to partner with change agents. This discussion needs to involve all the industry’s major players: big and small financial institutions, thought leaders, entrepreneurs, regulators and government. CL@B 2017 will bring them all together at the Intercontinental Hotel, from Aug 30th to September 1st .

A diverse and dynamic group of about 1,000 senior leaders from multiple countries and fields of expertise will address some of the industry’s most pressing themes and trends including: Cybersecurity, the future of payment, Blockchain, the Fintech effect, regulatory challenges and Big Data analytics.

The conference, coming into its 17th year, presents a platform for networking with the industry’s top professionals and attend expert panel discussions that will help generate ideas to address current and future challenges.

The speakers’ lineup include: keynote Chris Skinner, author and advisor to the White House; Robleh Ali, Research Scientist of the MIT Media Lab’s Digital Currency Initiative; Miguel Caldentey, Financial Services Advisory at Ernst & Young, in addition to senior leaders from Bank of America, World Bank, Facebook, PayPal, Delloite, Microsoft, Wells Fargo, IBM Watson, Citibank, Visa, SAP, IDC, Mastercard, BBVA, Ocean Bank, and several Fintech innovators and entrepreneurs.

“In a time of great anxiety for the industry, incumbent institutions realize that complacency is not an option,” said David Schwartz, President and CEO of FIBA. “Emerging technologies and innovative business models must be part of the solution. But the answer will probably not come from within: collaboration with external entrepreneurs and startups will invigorate existing paradigms, generate faster solutions and improve customer experiences that are so vital for traditional players to thrive. And this is what we will cover during this year’s CL@B,” he added.

The Secretary General of the Federación Latinoamericana de Bancos, FELABAN, Giorgio Trettenero Castro, commented: “In terms of technology and innovation there is much to be said: advances in many fields have been disrupting business models at speeds hard to imagine until recently. On the other hand, we are facing a new generation of businesses that will improve productivity, add new jobs and define new training needs. They will also present new challenges to the marketplace, given that stakeholders today get their information, buy and trade on-line. All this from the comfort of their mobile phones anywhere in the world.”

CL@B 2017 is supported by strategic partners including Ernst & Young, Procolombia, Microsoft, Bisagi, Infocorp, NEC, UDT and more than 100 supporting organizations.

 

About FIBA

Founded in 1979, the Florida International Bankers Association is a non-profit trade association that provides comprehensive support to the global financial services industry through education, conferences and advocacy. FIBA members include some of the largest financial institutions and influential organizations worldwide. FIBA is recognized by the financial services industry, regulators, and authorities, as a Center for Excellence for its knowledge and expertise. www.fiba.net

About FELABAN

The Federation of Latin American Banks is a non-profit entity founded by banking associations and other agencies from 19 Latin American countries in Mar del Plata, Argentina, in 1965, and it includes over 500 regional banks.

Its goals is to promote and facilitate communication, understanding and relationships between financial entities; to support the coordination of criteria and the unification of general banking and financial practices in Latin America; to cooperate with economic development; to promote well-being; and to procure greater access to financial services for low income populations. www.felaban.com

____________________________

Contact:

Ernesto Ortiz
Americas Connection
eortiz@americasconnection.com
(954) 661 4612

Rocio Lopez
Comunicación & PR
FIBA
Rocio33130@gmail.com
T: (305) 215 4837

By: FIBA on FinTechs: “We Expect the Regulation That Will Come to Leave Enough Space for Creativity to Allow Innovation”

Miami, July 25th 2017 – FIBA is the voice of the international banks operating in the US, and for years has called the attention of the regulators to the fact that the more abundant and restrictive regulation is making the environment more hostile for the once solid and flourishing international financial services industry. Only a few weeks before the celebration of CL@B 2017, the leading conference focused on Financial Technology in the Americas, David Schwartz, President and CEO of FIBA (Florida International Bankers Association), says: “Although robust regulation is needed to combat money laundering and terrorist financing, and a greater transparency is good for everybody, the continuous changes in the regulation and the addition of more complicated requirements take an enormous amount of resources from the firms, that not all of them can easily afford.”

In the last few years, we have seen some institutions exiting certain jurisdictions, or raising the minimum assets maintenance requirement for an account. And in every trade association meeting and conference complaints are expressed about the enormous amount of resources devoted to compliance and technology in order to keep pace with the changing times. The industry is awaiting the ease on regulation that President Trump announced, while technology continues to advance at a rapid pace.

“The financial services industry needs to become digital in order to meet the expectations of the tech savvy customer. Large corporations usually take too long to advance, in part because of regulatory requirements that slow change, and in part because they are better at traditional banking. That is why we have recently started to see acquisitions of FinTech companies, much more agile and innovative, by big banking corporations.” He adds.

“The financial services industry needs to become digital in order to meet the expectations of the tech savvy customer.”

Innovation needs space to happen, needs easy procedures, and certain freedom. But according to David Schwartz: “It is not that FinTechs are not regulated. It is only that there is no specific regulation for `FinTechs´ yet. The meaning of FinTech is very broad, including startups with two entrepreneurs and large corporations such as PayPal, and the regulation they must comply with is different in each case. But, of course, they cannot do whatever they want to.”

He adds: ”Many FinTechs are born with the ambition to be sold to a big corporation that would not buy something that is not in compliance, however you cannot regulate something before it exists and FinTechs as a whole are still emerging. First comes the reality, then comes the regulation. We expect the regulation that will come to leave enough space for creativity to allow innovation.”

 

About CLAB 2017
The CL@B Annual Conference, organized by the Florida International Bankers Association (FIBA) and the Latin American Banking Federation (FELABAN), is the largest Latin American technology and innovation event featuring networking and learning platforms for the financial industry. The conference is a traditional bridge connecting Latin America and the world.
Its 17th edition will take place in Miami between August 30 and September 1, 2017.
www.felabanclab.com

About FIBA
Founded in 1979, the Florida International Bankers Association is a trade organization that provides comprehensive support to the global financial services industry through training, conferences, and advocacy. Its members include some of the largest and most influential financial institutions and organizations in the world. FIBA is recognized by the financial services industry, regulators and authorities as a center of excellence for its knowledge and experience. www.fiba.net

About FELABAN
The Latin American Banking Federation is a non-profit entity that currently covers more than 500 regional banks and was created in Mar del Plata, Argentina, in 1965 by banking associations and other agencies of 19 Latin American countries. www.felaban.com

 

For additional information or interviews:
Rocio Lopez
Communications & PR
FIBA
Rocio33130@gmail.com
T: (305) 215 4837

By: MIT’s Michael Casey on Blockchain: “Processes Could All Be Disrupted”

Michael Casey, Senior Adviser of  the Digital Currency Initiative at MIT Media Lab, will be participating in the session: “Banking on Blockchain: The Status and future Potentials of the Blockchain Technology for the Financial Industry,” at CL@B 2017. He shared some of his insights on the disruption of the financial services industry, financial inclusion, cybercrime, money laundering, hacking, the obstacles to unlock its potential and the MIT Media Lab’s new Digital Currency Initiative.

How will blockchain technology behind bitcoin and other digital currencies disrupt the Financial Services industry?

A lot of the work being done right now by financial firms is going into back-office and interbank applications of blockchain or digital-ledger technologies. This could help streamline reconciliation processes that occupy a lot of time and resources in the financial sector. Processes such as securities settlement and clearing, custodial services, escrow management, share and asset registration processes could all be disrupted as institutions shift to a shared-ledger structure in which trade, payment and settlement data is updated in real-time. But although those are the areas attracting the most R&D, I think there are more powerful financial applications to come in the customer-facing aspect of the industry.

If the blockchain can be used to create more reliable, tamper-proof records of assets and systems for measuring personal reputation and identity, the hope is that the barriers that deny billions of people access to credit and other financial services will be be lowered. We may see new systems of trade finance, for example, or blockchain-securitized loans, decentralized credit unions or mutualized insurance programs.

Will it help reduce or enlarge cybercrime?

There’s no doubt that bitcoin is currently being used by cybercriminals. The pseudonymous addresses make it easier to cloak’s one personal identity, which is why it being used to demand digital extortion payments — for example, the spate of recent demands for payment to decrypt frozen files in ransomware attacks. But it’s also risky for cybercriminals to use the bitcoin blockchain because all transactions are published on a fully public, traceable ledger, which law enforcement agents are increasingly using to track criminals. Once the attacker cashes out into fiat currency via a regulated exchange, they can be caught. Of course, criminals will use unregulated exchanges to obtain dollars and other currencies to avoid detection but these aren’t very liquid and make it difficult to move large amounts of money. There are also sophisticated encryption techniques for criminals to further cover their tracks and obfuscate their transactions, but with Big Data and network analysis, the ability for law enforcement agents to overcome these barriers and track them down is also increasing. In effect, there is a cat and mouse game in play. It’s not clear that bitcoin and other cryptocurrencies are always going to be easily used by cybercriminals as their payment method.

Will it turn money laundering easier?

For the same reasons cited in the question about cybercrime, I think money launderers will find that the traditional blockchain is not a good place to hide money flows. If truly anonymous, encryption-dependent digital currencies like Monero are used, perhaps it will be easier for money launderers to hide their tracks, but there is again another problem of liquidity in these markets. It’s hard to buy in and out of them without losing money. With bitcoin, there are movements now to use the system to better monitor flows of funds across borders and build sophisticated anti-money-laundering (AML) compliance models on top of it. I believe that the right combination of blockchain-based AML and lower standards for KYC (know-your-customer) can give more people access to affordable cross-border payments but also provide protection against money laundering and other forms of illicit finance.

What about hacking?

Other than as a payment vehicle for cybercrime (see previous answers), I don’t believe bitcoin and blockchain technology makes hacking any easier, and if used properly, can provide great protection against it. Yes, people have hacked bitcoin wallets and it’s very important that new security systems be developed to protect individuals’ holdings of bitcoin, but bitcoin itself has never been hacked. The ledger has survived without anyone being able to manipulate it. That’s because the distributed nature of the network and the high cost of computation required to take it over create a massive barrier to attack. The integrity of this ledger, then, suggests that similar design concepts can and should be applied to the management of all sorts of computer systems. Currently, our data resides in giant, centralized pools controlled by single-gateway institutions that spend enormous amounts of money building firewall protections of these “honeypots” of information and yet they’re constantly being hacked by outsiders. That’s because there’s a huge incentive and a relative low cost to carry out such centralized attacks. If data is spread to the edges, however — if it is broken up into fragments and controlled by individuals and different nodes in a distributed structure that, like bitcoin’s blockchain, can’t be overtaken — the cost-vs-payoff is considerably higher for an attacker. Since each node has to be separately attacked with only a small payoff in each case, there’s a disincentive to engage in this activity. So, a blockchain model may well help reduce hacking rather than increase it.

Will they forge financial inclusion?

That is the hope, yes. The costs of managing trust relationships within the current, convoluted global financial system, with its multiple different entities, each managing their own ledgers, makes it unprofitable for banks to service low-income people. Know-your-customer rules and other requirements also mean that the “unbanked” — whose numbers run to 2 billion adults, according to the World Bank — are locked out of the digital economy, with cash their only medium of exchange. Bitcoin and other digital-currency solutions should, in theory, allow them to send money remotely, anywhere, at a significantly lower cost. Financial inclusion is an important goal of this technology — and some of its spinoffs, including plans for digital fiat currencies issued by central banks, are squarely aimed at achieving it.

What are the obstacles it still faces before its potential can be unlocked?

Bitcoin and other blockchain currency solutions need to be able to scale more easily, and for that there needs to be a smoother governance of its system to allow changes to the protocol. Work is being done on solutions that would allow many more transactions to run on bitcoin, but the challenge lies in getting everyone to agree to those changes. For consumer-facing solutions, there will also be a challenge in getting people used to using these technologies. Work needs to be done on creating user interfaces that make it seamless and easy to use, and which allow for efficient transfers into and out of digital currencies into traditional currencies. . The concept of the blockchain, much like TCP/IP and other Internet protocols, needs to be shifted to the background; people don’t need to understand how it works to use it. However, they do need their entry points into such a system to be easy to use. In the same vein, more robust, reliable and easy-to-use approaches to key management need to be developed. The ordinary person in a developing country is not going to want the responsibility of keeping track of and protecting access to private keys that control all their wealth. Easy-to-use “multisignatory” custodial systems in which a third-party provider provides protection but is unable to abscond with the customer’s assets need to be rolled out and developed.

What is the MIT´s Media Lab’s new Digital Currency Initiative?

The DCI is working to develop the core infrastructure and applications associated with digital currencies and blockchain technology to help migrate the financial system and the Internet economy to a more open, free-access, peer-to-peer model. To that end, we are working on various projects. For example, developers are building out the Lightning network, which promises to dramatically increase the scale of transactions in public cryptocurrency networks such as bitcoin and to achieve interoperability across blockchains. We are also working with central banks to develop a prototype for a new system of digital fiat currency. Meanwhile, “higher up the stack” of applications, others are working on blockchain-based systems of asset registries, to help farmers, businesses and households in the developing world more easily obtain collateralized credit. And I’m working on developing blockchain-managed solar microgrids to unlocking innovative financing solutions that could rapidly expand the installation of locally owned, decentralized renewable energy systems.

About Michael Casey

Having closed a career as a journalist, Michael Casey is an author/journalist, public speaker, media commentator, blockchain technology adviser, and consultant who now researches and works on projects harnessing the blockchain technology that runs bitcoin. After 18 years at The Wall Street Journal, he is now at MIT Media Labs’s Digital Currency Initiative. He also consults for businesses on the challenges and opportunities in this emerging technology, and is an advisor to The Agentic Group on several blockchain projects worldwide.

By: The FinTech Effect and the Era of Banking Disruption – Presented by Marco Antonio Cavallo

Marco Antonio Cavallo, founder and analysis director of CGN Research & Advisory Group, shared his view on the FinTech effect and the era of banking disruption, with a group of more than 500 virtual attendees from 30 countries. These are all conclusions from the online conference organized by FIBA.

Key Takeaways:

  • Financial technology, or FinTech, will boost the new business model for financial services.
  • The benefits of associating with FinTechs are obvious for the banking industry.
  • FinTechs (or financial technology companies) should understand scalability.
  • It is not about technology, but about what can be created with it.
  • There is a significant gap between the expectation of the digital consumer and the offers from traditional financial institutions to their clients.

Cavallo considers that the financial industry has been historically slow to innovate, so for traditional banks partnering with a smart startup in order to use their leading edge technology can be a quicker way to create a new competitive advantage in an increasingly digital market. “The banking industry should see the big picture and aptly agree to the long-term impact of an association with a FinTech company or its acquisition,” he said.

“There is no need for the banks to deeply understand the underlying technology in order to realize that the original rules of the business remain the same. The banking industry is in need of creative, talented individuals who can synchronize the new technology with the business goals of the industry; because the new digital consumer needs faster and more convenient mobile and online services,” said Cavallo.

Lastly, he noted that the relatively poor performance by most of the traditional banking organizations on customer-driven digital accounts, the opening of said accounts and the cross-selling process involve an opportunity for those institutions that wish to grasp the potential of becoming “Digital Banks.”

Cavallo is an expert, columnist and blogger of advanced strategies of information technology at CIO.com and member of the IDG Influencer Network. He will be participating in CL@B 2017, the 17th Financial Technology and Innovation Conference, organized by Florida International Bankers Association (FIBA) and Latin American Banking Federation (FELABAN) in Miami between August 30th and September 1st.

By: The Gap between Traditional Offer and the Client’s Digital Demand Provides the Opportunity to Become a “Digital Bank”

Miami, July 13th 2017.- Financial technology, or FinTech, will boost the new business model for financial services. The benefits of associating with FinTechs are obvious for the banking industry. FinTechs (or financial technology companies) should understand scalability. It is not about technology, but about what can be created with it. There is a significant gap between the expectation of the digital consumer and the offers from traditional financial institutions to their clients.

These are all conclusions from the online conference organized by FIBA, where Marco Antonio Cavallo, the founder and analysis director of CGN Research & Advisory Group, shared his view on the FinTech effect and the era of banking disruption, with a group of more than 500 virtual attendees from 30 countries.

Cavallo, an expert, columnist and blogger of advanced strategies of information technology at CIO.com and member of the IDG Influencer Network, considers that the financial industry has been historically slow to innovate, so partnering with a smart startup in order to use their leading edge technology can be a quicker way to create a new competitive advantage in an increasingly digital market. According to Cavallo, the banking industry should see the big picture and aptly agree to the long-term impact of an association with a FinTech company or its acquisition.

“There is no need for the banks to deeply understand the underlying technology in order to realize that the original rules of the business remain the same. The banking industry is in need of creative, talented individuals who can synchronize the new technology with the business goals of the industry; because the new digital consumer needs faster and more convenient mobile and online services,” said Cavallo, in a conference organized in the context of CL@B 2017, the 17th Financial Technology and Innovation Conference, organized by Florida International Bankers Association (FIBA) and Latin American Banking Federation (FELABAN) in Miami between August 30th and September 1st. www.felabanclab.com

Lastly, he noted that the relatively poor performance by most of the traditional banking organizations on customer-driven digital accounts, the opening of said accounts and the cross-selling process involve an opportunity for those institutions that wish to grasp the potential of becoming “Digital Banks.”

About CLAB 2017
The CL@B Annual Conference, organized by the Florida International Bankers Association (FIBA) and the Latin American Banking Federation (FELABAN), is the largest Latin American technology and innovation event featuring networking and learning platforms for the financial industry. The conference is a traditional bridge connecting Latin America and the world.
Its 17th edition will take place in Miami between August 30 and September 1, 2017.

About FIBA
Founded in 1979, the Florida International Bankers Association is a trade organization that provides comprehensive support to the global financial services industry through training, conferences, and advocacy. Its members include some of the largest and most influential financial institutions and organizations in the world. FIBA is recognized by the financial services industry, regulators and authorities as a center of excellence for its knowledge and experience. www.fiba.net

About FELABAN
The Latin American Banking Federation is a non-profit entity that currently covers more than 500 regional banks and was created in Mar del Plata, Argentina, in 1965 by banking associations and other agencies of 19 Latin American countries.

Its objectives are: to promote and facilitate contact, understanding and direct relations between financial institutions; Contribute to the coordination of criteria and the unification of banking and financial use and practices; Cooperate to economic development; Developing well-being; And to approve further financial deepening and greater access to financial services for low-income populations. www.felaban.com

 

______________________

For additional information or interviews:
Rocio Lopez
Communications & PR
FIBA
Rocio33130@gmail.com
T: (305) 215 4837

By: Silvia Pavoni, Economics Editor for ‘The Banker,’ on Women in Technology

We spoke with Silvia Pavoni, Economics Editor for The Banker, regarding the role of women in tech firms, the reach of FinTech’s disruption in the workforce, how technology helps women in Latin America and how governments are playing a role in including women through technology. Silvia oversees The Banker’s coverage of Latin America, international financial centers, wealth management capital markets, trade finance and financial inclusion. She has traveled extensively in the region and volunteers at WILL (Women in Leadership in Latin America).

Silvia will moderate a general session called “Women in Technology” at CL@B 2017. Panelists include Laura Gaviria Halaby, Global Head Digital Acceleration, Citi; Mia Nygren, General Manager, Spotify Latam and US; Mary Spio, CEO and Founder, CEEK – virtual reality; and Francesca de Quesada Covey, Head of Product Partnerships, Latina America, Facebook.

Here are some of Silvia’s thoughts:

“There is plenty of research highlighting typical differences in leadership styles between men and women, and how including more women in decision-making roles seems to correlate with better financial indicators. In the end, to me, making sure women can access a specific job market or progress in their careers, should they seek to, continuing to reduce bias and prejudice, is just the right thing to do.

“As far as I can tell, there is still no substantial evidence pointing in this direction.”

It will certainly be interesting to see if the fintechs setting out to disrupt the finance world can also modernize the gender composition of its workforce. As far as I can tell, there is still no substantial evidence pointing in this direction.

Technology would certainly help Latin America’s wider population in accessing financial services, and many other services for that matter. With women typically running households, I can only see benefits in making sure technology translates in wider social and financial inclusion. Government-led programs, in partnership with the private sector, to improve financial inclusion would be beneficial; it’d be great to see more of them across Latin America.”

By: Ocean Bank’s Sergio Pinon on Cybersecurity: “Number One Protection Is Employee Training”

Hackers have become more professional and expert in breaking barriers established via traditional security measures. Increasing digitization and connectivity has triggered an increase in incidents of data breaches, compelling banks to strengthen their security systems.

Sergio Pinon, SVP& Director of Security of Ocean Bank, believes Financial and Government sector are the most targeted industries by hackers. In his words, for the Financial Industry “This has become the biggest threat for the past two years and growing”. Sergio believes number two is conducting periodic risk assessments of different types, but number one protection is employee training. Conduct regularly security chats with the customers on Cybersecurity is also something he suggests.

Sergio Pinon will be moderating the session “Cyber Security Trends” to be held in CL@B 2017, the 17th Financial Technology and Innovation Conference, organized by Florida International Bankers Association (FIBA) and Latin American Banking Federation (FELABAN) in Miami between August 30th and September 1st.

What industries are the main targets of hackers?

Financial and Government sector.

How big is the thread of a cyberatack to the Financial Services industry?

This has become the biggest threat for the past two years and growing. The financial impact is over 2 billion dollars a year. Average cost of a breach is around 4.5 million dollars depending on the size of the institution and system or data compromised.

How do Financial Services firms protect themselves?

Number one is employee training due to the vast amount of breaches as a result of email malware, Number two conducting periodic risk assessments of different types such as External Penetration Tests, Internal Vulnerability Assessment, GLBA Risk Assessments, Cybersecurity Risk Assessments, monitoring system log activity on a 24 X 7 timeframe, and staying informed of vulnerabilities.

What is the investment in cybersecurity devoted to?

Training, expert hiring, governance and tools to identify, prevent, detect and respond to a threat.

What is the goal of a cyberatack? What do criminals look for?

Mainly for financial gain and stopping operations.

Do clients show their concern on it?

Absolutely and it could create a reputational risk as far as losing customer base if the institution suffers a breach.

How does a firm show clients it is ready for a cyberattack?

By asking their Security Experts to speak to those who are concern and also conduct regularly security chats with the customers on Cybersecurity.

How do clients accept the new security procedures that usually turn operations more complicated when part of their requests are simplicity, easiness and a good client experience?

If well explained, usually very positive. Again it leads to employee training to know how to deal with customer concerns and provide a very positive explanation on the matter.

By: CL@B 2017 Will Bring Experts from 35 Countries Together in Miami to Analyze the Evolution of the Financial Ecosystem

Miami, June 21 2017 – Under the slogan “The evolution of the financial ecosystem,” CL@B, the biggest and most prestigious financial technology and innovation conference in Latin America, organized jointly in Miami by FIBA and FELABAN, will launch its seventeenth edition on Wednesday, August the 30th, giving way to two and a half days of presentations, panel discussions and networking sessions.

In this event, which has already become a link between Latin America and the rest of the world, more than 900 attendees from over 35 countries will share their knowledge and concerns about the latest developments in the financial service industry with 100 speakers, high level leaders of the financial information technology industry, and delegates from more than 200 financial institutions. Topics will include, among others, FinTech and digital transformation, payment channels, cybersecurity, Big Data, laws and regulations, blockchain, and financial inclusion.

Some of the top featured speakers are Chris Skinner, Chair of the European networking forum The Financial Services Club and Nordic Finance Innovation and author of several books; Francesca de Quesada Covey, Head of Product Partnerships in Latin America at Facebook; Martin Borchardt, CEO & founder of Nubi; Laura Gaviria Halaby, Global Head of Digital Acceleration at Citi; Fernando Moreno, Global Business Development, New Digital Business at BBVA; Carlos Gonzalez, Consulting Director at IDC Latin America; Michael Casey, Senior Adviser, Digital Currency Initiative at MIT Media Lab; Robleh Ali, Digital Currencies Research Scientist at MIT Media Lab; Sergio Piñón, Senior VP, Director of Security at Ocean Bank; Agustín Gattas, Cognitive Solutions Executive at IBM Watson Argentina; and Gustavo Fosse, IT Director of Banco do Brazil.

About FIBA

Founded in 1979, the Florida International Bankers Association is a non-profit trade association that provides comprehensive support to the global financial services industry through education, conferences and advocacy. FIBA members include some of the largest financial institutions and influential organizations worldwide. FIBA is recognized by the financial services industry, regulators, and authorities, as a Center for Excellence for its knowledge and expertise. www.fiba.net

About FELABAN

The Federation of Latin American banks is a non-profit entity founded by banking associations and other agencies from 19 Latin American countries in Mar del Plata, Argentina, in 1965, and it includes over 500 regional banks.

Its goals are to promote and facilitate communication, understanding and direct relationship between financial entities; to support the coordination of criteria and the unification of general banking and financial practices in Latin America; to cooperate with economic development; to promote well-being; and to procure a greater access to financial services for low income populations. www.felaban.com

 

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Contact:
Rocio Lopez
FIBA
Communications & PR
Rocio33130@gmail.com
(305) 215.4837