Sales League Table 2020 | Banking Technology Winners

Results Announced!

Stay up-to-date with the latest industry news and analysis.

Subscribe to BankTech Daily News today. Limited time offer.

The Black Swan Opportunity | Get your bank digital ready.

IBSI Special 5 Digital Report Package with Special Offer. Subscribe now

Core Banking Market Dynamics Report 2020

Global analysis of core banking system sales. Subscribe now

Banks choose steady fintech partners over sexy technology, says security rater Bitsight 

Jake Olcott

Partnerships between big banks and agile fintech companies are being put at risk by the perceived insecurity of startups, according to cybersecurity auditor Bitsight. 

 Security rater Bitsight unveiled its Peer Analytics service at the RSA Security Conference in San Francisco on March 8th. Speaking after the event, the vendors VP of government affairs, Jake Olcott, warned that third-party partnerships are an emerging source of danger for banks. 

 The emergence of challengers in the fintech sector has forced big banks to work with partners,” said Olcott, but this presents a new risk because their methods of risk assessment need updating. 

 According to Olcott, most C-level executives are aware of the dangers of third-party partnerships but lag behind in their methods of risk aversion. Though 97% of technology professionals are aware of the importance of cybersecurity, many still use primitive processes to implement it. Its not unknown for companies to send out questionnaires asking: do you have good security?” said Olcott. 

 The rapidly changing nature of cybercrime means that the threats, expectations and standards of care associated with security are constantly in flux, with todayadequate’ being tomorrows source of shame. Traditional approaches to cyber assessment  – like point-in-time security audits and compliance reviews – fall woefully short in analysing the risks of working with a partner, said Olcott. 

 When banks adopt more sophisticated methods of cyber risk assessment, fintech startups will find themselves under much tougher scrutiny, Olcott warned. The potency of a fintechs technology is no longer the deciding factor in a partnership. Increasingly often a financial institution will choose a partner on the basis of their security rating,” said Olcott. 

Related IBS Intelligence Research

Related Posts

cred.ai emerges from stealth mode & launches technology-powered Metal Card

cred.ai, a Philadelphia-based FinTech company, has announced its emergence from stealth mode to debut technology-powered Metal Card, a consumer spending product that leverages proprietary technology to give users controls, convenience, and automatic credit score optimization. With cred.ai Guaranty, customers do not have to pay fees or interest. They will also receive a premium brand experience […]

This post is only available to members.

Read More »

Cloud9 Technologies teams up with comitFS to boost real-time voice trading APIs

Cloud-based communications provider Cloud9 Technologies has teamed up with comitFS, a UK-based provider of voice middleware and API abstraction capabilities for financial services companies. The collaboration will facilitate the development of real-time call control capabilities for voice trading within the institutional marketplace. “As trading dynamics shift to a more digitally-driven environment, firms want the peace […]

This post is only available to members.

Read More »

Quantum Group acquires mobile cashback app Tail

London-based FinTech incubator Quantum Group today announced the acquisition of mobile cashback app Tail. The acquisition is expected to enable Quantum Group to increase the number of banking partners integrated with Tail and to onboard different retailers from around the UK. Tail’s platform enables retailers to create hyperlocal marketing campaigns, thus allowing them to increase […]

This post is only available to members.

Read More »