Pub. 2 2014 Issue 4

fall 2014 11 M obile banking, online account opening, customer service via social media, mobile wallets… All of these technologies have become popular in the past three to five years, and you can bet that the “next big thing” in technology is right around the corner. Today’s consumers don’t just expect their financial institutions to offer the latest and greatest in technology – they demand it. However, banks must weigh the risk of customers being drawn away by newer gadgets against the reputational and regulatory risks created by offering new technological products and services. What factors do banks need to consider when incorporating emerging technol- ogies into their security and marketing strategies? Risks if You Do; Risks if You Don’t When initiating a new technology prod- uct or service, the first major risk banks need to address is the long-term viability of their vendor, according to Jack Vonder Heide , president, Technology Briefing Centers, Inc. “Selecting the right partner is the biggest risk,” he said. “Many of these technologies are provided by startup companies, and if those companies have a bad couple of quarters they could poten- tially go out of business.” Similarly, when vetting a potential tech- nology partner the bank should ensure that it won’t be launching an outdated product. The technology world moves quickly, and keeping up with current trends is important, especially for banks looking to attract new customers. “One of the first risks is keeping up with over- all technology trends,” said Jay Reed , managing director and senior consultant, ath Power Consulting. “For example, if you launch a mobile banking app that’s antiquated compared to current apps, you’re losing your target market before you start,” he said. “You have to un- derstand what’s available in the current market and perform a gap analysis,” said Mark Nelson , vice president – chief information officer, Horicon Bank, 2014- 2015 WBA Technology and Operations Committee Past Chair. “Look at what “Keeping Up with the Jetsons” Weighing the Risks and Opportunities Created by Trends in Technology By Amber Seitz  Technology — continued on page 12