Cisco: Cybersecurity weakness slowing digital innovation in retail banking

Mike Weston

Retail banks have the potential to realize $405.3 billion from 2015 to 2017 as the Digital Value at Stake (VaS), latest research report from Cisco showed.

The research titled “Roadmap to Digital Value in the Retail Banking Industry found financial services as a whole captured just 29 percent of that opportunity in 2015.

“With the pressing realities of agile ‘fintech’ disruptors, digital consumer demands, and complex regulatory hurdles, the question of how retail banks can compete and capture the revenue opportunity at hand has come to the fore,” says Mike Weston, Vice President, Cisco Middle East.

Slowing growth and innovation and cybersecurity weakness are cited as challenges preventing the banks from realizing this amount.

Cybersecurity concerns have also prevented retail banks from adopting digital technologies and business models.

And this has contributed to them missing out on more than 70 percent of the potential revenue opportunity, the report said.

Cisco said retail banks can transform cybersecurity from a liability into an asset that supports customer trust, innovation, and growth.

The report also took the opportunity to warn that retail banks that fail to drive their digital transformation may be put out of business completely.

According to a 2015 study by the Global Center for Digital Business Transformation (DBT Center), an IMD Business School and Cisco initiative, 4 out of the top 10 retail banks will be displaced by digital disruption in the next three years.