Keeping banking secure in an age of social media

Leveraging technology can help banks capitalize on emerging opportunities to connect with potential customers and even perform more effective credit risk assessments, but there is a compelling need to focus on security when conducting business digitally. Live Mint has some information on the way banks are using social media accounts to allow customers to interact with them, which may raise unique concerns about safeguarding data.

The source describes how increased interest in sites like Facebook has led companies to incorporate these popular services into their online banking offerings in India. One of the banks profiled in the article reportedly maintains 7 percent of new accounts through these kinds of channels.

So there’s a clear application there for banking activity. But can social media be valuable to lenders in more direct ways? A poll featured in American Banker showed that 53 percent of respondents believed that banks could gain something from paying attention to social media, but only if this was done skillfully and “without micromanaging.” Almost 40 percent believe social media is “as important to a bank today as mainstream press.”

Unfortunately, as has been the case for some time, social media still proves to be a dangerous place for sensitive information, according to one report from a security company mentioned. This company, Kaspersky Lab, noted that fake bank pages were used in more than 70 percent of so-called “phishing” attacks that aimed to compromise data about online financial transactions.

The use of case management software might help your firm increase its own sense of accountability and try to uphold a high standard for security in all digital transactions.

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