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Across Europe, consumers have largely turned cashless during the pandemic, with contactless and online payments increasing exponentially. But with the high streets across Europe slowly entering into the new normal, will consumers demand a return to cash payments?

By Koen Vanpraet, Group CEO, PXP Financial

The COVID-19 Effect on European E-Commerce and Retail from PXP Financial surveyed consumers in six European countries, finding widely varying appetites towards a cashless society. For example, Poland is the most enthusiastic to ditch cash, while The Netherlands the least – and the UK is smack in the middle with its views on the matter.

In the research, 41% of consumers across the six countries – UK, Spain, Germany, The Netherlands, Poland and Italy – indicated that they would feel positive about a cashless society, while 31% would feel negative. Poland topped the tables of going cashless with 54% of respondents indicating positivity towards dropping cash. Italy followed on 49%, Spain next with 42% followed by the UK at 40%. The two least positive countries were Germany on 33% and the Netherlands on 31%.

A culture of cash

Despite the varying attitudes towards a cashless society, consumers across most of the countries showed enthusiastic uptake of cashless payments – contactless payments, e-wallets, mobile payments, and wearables among them. The notable exception was Germany. For most Germans, using cash isn’t just a personal preference; it’s a cultural value that they’ve grown up with and one tied closely to a national value with centuries-old roots.

But even here as the pandemic has pushed what would have been previously low-value cash transactions onto other payment types, a whopping 73% of German consumers said they had to change their favoured payment method – cash – during the pandemic. When asked what payment methods they tried as a result of the pandemic, Germans overwhelmingly favoured PayPal as their preferred non-cash payment form at 58%, followed by contactless at 48% and online banking at nearly 43%.

Looking at combined answers from all respondents, when asked what payment methods they had tried because of the pandemic, 48% of people have tried contactless. The highest uptake was in Poland at 70%, with Spain ranking the lowest at 27%. Respondents are now also more likely to spend money at retailers that offered contactless/contact-free payment options than before Covid-19, with 65% of all respondents saying yes. Again, Polish shoppers (80%) are more predisposed to contactless, given that it was one of the first countries in Europe to trial the technology.

Re-evaluating the value of cash

Other country-specific highlights in the report show some surprising trends. Italy is one of the most cash-heavy societies in Europe, but the arrival of Covid-19 has led to a rapid re-evaluation by consumers of their payment habits. In the PXP Financial survey, Italian respondents are mostly favourable about the prospect of a cashless society, with nearly 50% seeing it as positive, compared to 21% who viewed it negatively.

The irony of heavy cash usage in Italy is that it gave rise to the introduction of prepaid and contactless payment. Italy is one of the most advanced contactless countries in the world. These figures were reflected in the survey, with nearly 44% stating that they had tried contactless because of the pandemic. Over 63% said they had tried PayPal, while 38% had opted for online banking. Those who tried mobile payments for the first time amounted to just over 14%.

Meanwhile in Spain, although Spaniards are traditionally avid cash users, there are positive signs that things are changing in favour of non-cash methods. Compared to their European counterparts, it appears that Spanish shoppers wouldn’t be sad to see the end of cash. Around 42% believe a cashless society is a good thing, whereas 34% view it as a negative. This is evidenced by the fact that the popularity of payment cards in Spain (particularly credit cards) has surged in recent years, and in mid-2020, for the first time, card usage overtook cash.

At the dawn of a contactless society

Even before the pandemic, there were some European countries who were already deep into the development of a contactless society, with the UK already being entrenched in contactless payments.  But that doesn’t mean everyone was and around 52% of respondents said that they had been influenced to try out contactless payments as a result of the pandemic.

Usage of online banking and PayPal was neck and neck at roughly 38% each. Meanwhile, mobile payments had caught the attention of 22% of UK consumers surveyed, while a further 6% said that they had tried wearable payment forms like watches and wristbands during the pandemic.

Poland is a technologically advanced market, with more dynamic payment method usage than in neighbouring Germany. Poland was one of the first European countries to pioneer contactless payments, evidenced by an overwhelming 80% of Polish respondents said they would now be more likely to spend money at a retailer that offered contactless payment options than before Covid.

Polish consumers overall have a positive view on having a cashless society, with 54% seeing it as a welcome prospect. On the other hand, 19% viewed the end of cash as a negative.

As a result of the pandemic, Polish consumers were more willing to try new payment methods compared to the other countries in the survey. Over 70% stated that they had tried contactless, while a significant 81% said they had opted for online banking. PayPal scored highly in Poland too, with 92% of respondents trying it for the first time during the pandemic.

The Netherlands already has one of the highest rates of non-cash payment method usage in Europe but is characterised by a few anomalies compared to other European markets.

Although non-cash payments are extremely popular, online banking and credit transfers, rather than debit cards, are favoured by Dutch consumers. Cards account for a lower proportion of retail sales compared to other European countries. Credit card usage in particular ranks much lower in the Netherlands when compared to the UK, for example.

But when it comes to getting rid of cash altogether, Dutch respondents are reluctant to wave goodbye to bank notes and coins. 38% of those surveyed view a cashless society negatively, compared to 31% who think going completely cashless is a positive thing.

Preparing for the ‘new normal’

The PXP Financial research shows how important having the widest possible choice of payment methods is for retailers.

Retailers and payment organisations need to work together to understand what their customers need in the new normal as the high streets across Europe open up once again. Together, retailers and payment organisations can develop solutions to ensure continued customer loyalty even as the face of retail changes in line with the widening array of payment methods. Added-value services like loyalty schemes, promotions, in-store rewards through QR codes are all valuable tools that retailers can use to offer their customers convenience, speedy footfall and payment security.

The research underscores the need for retailers to understand the direction of consumers’ attitudes towards where they shop, how they pay for the goods they are buying and what they require from retailers going forward. Covid’s new normal has accelerated the speed of direction and retailers must catch up with their customers.

The global pandemic has forced many customers to use digital touchpoints and services for the first time. However, a wide gap separates billions of consumers from the solutions stack that digital banking provides.

By Sathish Muthukrishnan, Chief Information, Data & Digital Officer, Ally Financial

Persuading consumers to make the leap takes patience and a personalised approach, but above all, it requires education. Here are three common myths about digital banking – debunked:

Myth #1: There is a lack of customer care in digital banking

Many people perceive in-person communication as the epitome of customer service. In numerous industries, it continues to serve both as a symbol of customer commitment and as a measuring stick by which consumers gauge an organisation’s authenticity and accountability. In banking, however, technology creates more of a bridge than it does a divide. Digital banks often provide 24-hour support and offer their customers a variety of communication channels – including mobile, computer, phone, and chat.

Receiving great customer service from an online-only institution may seem counterintuitive, but in its best form, digital banking can be anticipatory, seamless, and frictionless. The focus on technology that underpins digital banks means the customer experience is more consistent, efficient, and personalised than face-to-face service offers. In an era where bank customers are more transient than ever, the high retention rates of digital banks speak for themselves.

Myth #2: Digital banking creates a language barrier

Consumers who do not consider themselves digitally ‘fluent’ may assume that creating and maintaining an online account for digital banking services is too difficult. However, the fact that digital banks acquire most of their customers via an online-only journey means they are forced to create simple, easily understood processes.

Opening an account with a good digital bank generally takes no more than five minutes and, based on the information provided, customers may receive additional recommendations for personalised services, tools, and investments. Many customers are surprised to learn digital banking also operates on very little ‘fine print’ material – some use none – which provides a stark contrast to the pages full of legal disclaimers most traditional banks require customers to sign.

While digital banking may appear as a series of opaque obstacles, especially for digital non-natives, its functions and services are designed for maximum accessibility – no matter the customer’s background or technological adeptness.

Myth #3: Digital banking is less secure

Digital banks operate under the same regulations as traditional physical banks. Good digital banks also incorporate security into the design of all their operations and processes and continually build on security features to protect customers’ deposits, transactions, and personal data.

At a minimum, digital banking provides the same level of monitoring and safeguarding as traditional banks. But many of them leverage technology to add even more layers of protection to customer data. Executives are aware that trust is a major factor in converting consumers to digital banks and go the extra mile to ensure their organizations offer market-leading security.

The Bottom Line

Digital banks are typically more sustainable and less fragile than traditional banks. The people-first mindset that the best in digital banking embody is exactly why they are so convenient, easy to use, hyper-secure, and available around the clock. The value retained by eliminating physical infrastructure is passed on to customers – and increasingly, those consumers are taking note.

In most ways, digital banking represents smarter business – maximum value is delivered to customers at lower operating costs.

As technology evolves and FinTech takes a grip on the financial services industry, today’s banks have a distinct opportunity to engage consumers through financial innovation that not only better supports savings, purchases and investments, but does so with positive sustainability credentials and a reduced environmental impact.

By Dan Harden, Director of Business Transformation, Paragon Customer Communications

Even over a decade since the severe financial crisis of 2007-08, the activities of banks and other financial services providers remain under a great level of scrutiny. And none more so than when it comes to their environmental impact and green credentials.

Just last year, the Banking on Climate Change 2020 report revealed that 35 of the world’s leading banks have provided $2.7 trillion to fossil fuel companies in the four years since the adoption of the Paris Agreement (2016-2019). This is equivalent to more than $1.5 billion for every day since the end of 2015, with no downward trend and no assessment of the carbon impact of that finance.

The formation of The Partnership for Carbon Accounting Financials (PCAF) – a global partnership of financial institutions committed to facilitating transparency and accountability of the financial industry to the Paris Agreement – and the launch of the first global standard to measure and report financed greenhouse gas (GHG) emissions associated with their loans and investments, was a signal of intent for the industry.

The spotlight on institutions, however, is no longer solely being pointed by local and international regulators, but also by a wider public including clients, employees and investors concerned about sustainability.

Deloitte’s Better Banking Survey recently revealed more than 60 per cent of some 1,250 British adults would leave their bank if they found out it was linked to environmental or social harm, even if it had the best financial offer available. Further, seven out of 10 people said they would be more likely to choose a bank that had a positive social and environmental impact.

All this combined means sustainability, responsibility, and the disclosure and reporting on carbon emissions are now very much a critical competitive advantage within the financial services sector.

Meeting the global standard for Green Finance

As banks seek to quell public and regulatory pressures, and improve their environmental credentials, technology has become a fundamental tool for delivering sustainable business operations. FinTech is already an innately sustainable alternative to the traditional banking, allowing consumers to manage their finances using digital technology, removing the reliance on paper-based transactions and even the need to travel.

Banks, for instance, are enhancing their low-carbon offering and reducing climate risk through intuitive technologies such as chatbots and virtual assistants, artificial intelligence and machine learning powered robo-advisors, as well as increasingly intuitive banking apps. Digital integration is being executed to bring together the platforms used for transactions, data management and customer interactions for a seamless and sustainable omnichannel delivery model.

Such platforms are not only allowing financial institutions to take the necessary technological steps towards sustainability, but also delivering better service for consumers and CX. Secure and almost always at hand, they make the process of carrying out financial transactions, accessing products, getting advice and financial updates far simpler, reducing the need to visit branches, or make calls.

Centralised Customer Communications Management (CCM)

Of course, before widespread technological change is adopted, banks must ensure they have the most effective and efficient CCM solutions in place.

Organisations are increasingly seeing the benefits of adopting a single, centralised, customer communications management deliver model – a “one platform” approach that underpins communications across all channels and technologies. By doing so, banks can ensure they have the delivery infrastructure to support a truly frictionless CX across a multitude of traditional and digital channels, while at the same time facilitating transformation at pace.

A consolidated perspective of communications can facilitate the analysis of lifecycle sustainability impacts, allowing financial organisations to choose supply chain partners that are committed to the same values including negative emissions, zero waste to landfill and creating an environmentally resilient future.

In a bid to deliver a roadmap to Net Positive Communications, banks are working with knowledgeable partners to help them implement the tools and technologies that will make net-zero emissions technologies deployable at significant scale, in turn, delivering on their long-term sustainability goals and aspirations.

In this article, Rajashekara V. Maiya, Vice President and Head, Business Consulting Group, Infosys Finacle, speaks about four key trends in the era of digital transformation that are changing the nature of loans, borrowers and lenders.

The size of a nation’s lending portfolio is closely linked to its economic growth and development. Take South East Asia as an example where the countries that have high GDP growth also have high loan-to-GDP ratios. All these countries have a robust lending market supplying affordable, hassle-free financing to corporate, SME and retail borrowers, creating consumption-driven growth momentum.

But this was not always the case. China in 1975, Thailand in the 1980s and Malaysia in the 1990s were all struggling to grow their GDP. But then they went through a retail boom, when per capita income crossed a threshold US$ 1000 to stoke the aspirations of the people for a better lifestyle, better housing, better transportation etc., which created a demand for retail financing. Today, the world is in a different yet similar situation, with the pandemic denting economic health globally. One way to reclaim growth is to fuel consumption, and one way of fueling consumption is by boosting retail lending.

Currently, there is ample scope to increase the loan-to-GDP ratio in many parts of the world. This is especially the case in developing countries, which need to bring their substantial underbanked population within the ambit of formal banking. However, that would stress the infrastructure of their banking technology landscape beyond tolerable levels. The only solution is to transform the retail lending landscape, across the formal banking industry as well as the informal, unorganized sector. This includes lending processes and banking workflows, as well as the associated technology infrastructure.

The other important thing to consider are the broad trends that are sweeping retail lending across the globe. We can categorize these as changes in the nature of loans, of borrowers, and of lenders.

A loan that is no longer that

The biggest trend here is that the loan has become incidental, almost invisible, in the consumption journey. Customers don’t want loans per se; they are only a means to fulfil a primary expressed need, for a car, for a college education, for a home and so forth. Therefore, banks’ conversations with customers should be about helping them achieve their primary desires rather than pushing a lending product. The product-centric approach to lending is now outdated, and has been replaced by a customer-centric or even customer-specific mindset of helping customers fulfil their unique desires while offering the best financing option in their particular context.

A customer who is demanding but debt-friendly

Today’s retail borrower is very different from the one of even a few years ago. There is no patience for spending hours in a branch gathering information and filling out forms.  As a product of the digital age, this borrower expects financing to be delivered to him or her, on a digital device of choice. A key expectation is that the loan application and onboarding process will be digital. Another is that the terms of lending will be a balance of borrowers’ rights as well as their obligations.

Many trends have gone into shaping this customer. Ample choice is one of them. For instance, a customer buying a car can get an attractive loan from a non-bank financing company or from the financing arm of the automobile manufacturer itself. The customer embarks on a redefined journey where a bank has no role to play. Another influencing factor is demography: more than 70 percent of the global population is below the age of 30 and almost everyone is digitally connected. Far from being debt-averse like generations past, these young customers demand deferred payment options such as credit card payments, monthly installments and the popular “buy now pay later” facility from Amazon.

A lender who has raised the bar

Some years ago, “lender” usually meant a commercial bank. Today, the definition includes a plethora of providers, from Fintech companies to retail businesses to even social networks, offering financing in different forms and flavors. Amazon is a standout example, with a loan portfolio in excess of US$ 10 billion spread across its gigantic merchant base. Amazon’s lending process is not just completely digital, it takes all of 3 clicks to boot! What’s more, the company offers attractive rates, with full transparency and no hidden costs.

Traditional banks are at serious risk of being left out of the new lending paradigm. To stay relevant, they need to reimagine their customer journeys to match the benchmarks being set by the likes of Amazon. At a minimum that would mean designing a lending process that is digital from end-to-end, where origination, eligibility checks, approval and servicing can be completed within a few clicks. Secondly, banks should rely less on agents and brokers to sell their loans, replacing them with a digital alternative, such as a mobile app.

One more trend that is changing the face of banking – and consequently impacting lending – is the platform business model. The platform is front and center in digital loan processing. It is also enabling lenders to participate in the primary journeys of customers by creating online marketplaces for non-banking products and services. DBS Bank, with its highly successful platforms for used cars, travel, real estate and utilities, is a great example. The bank makes no mention of its banking products in these marketplaces; however, once a customer has fulfilled a primary need, for a new utility connection, for example, the platform offers an option to use a DBS Bank account to set up a standing payment instruction.

A word on the pandemic

By accelerating digitization in every sphere, including lending, the pandemic opened the doors to simpler, transparent, cost-effective loans. In the latest EFMA Infosys Finacle Innovation in Retail Banking Study, financial institutions cited that the highest levels of innovation success were seen in the lending¹. But could it also set off another trend, one where banks participate in improving the health of their customer communities? Just like insurance companies, which tap digital information about customers’ driving habits or lifestyle, to determine premium, could banks link the terms of lending to customers’ vaccination status by accessing their digital records subject to consent? It remains to be seen.

References:

https://www.edgeverve.com/finacle/efma-innovation-in-retail-banking/

Over the past 12 months, retail merchants have had to contend with high street closures, furlough schemes and in-store mandates such as face coverings and social distancing. New consumer trends have also emerged, and existing ones have been turbocharged.

By Kirsty Morris, Managing Director of Barclaycard Payments

To help merchants, and their payments and finance providers in the UK prioritise business planning, Barclaycard Payments has pulled together its top 10 ‘lockdown legacies’ set to outlast Covid-19 restrictions. They are:

1. Growth in home deliveries: Consumers have been receiving an average of two extra retail deliveries per month since March 2020 (7 parcels now versus 5 before March 2020). Over half expect to receive the same amount, or even more, in the future.
2. Click & Collect boom: Around one in three (30%) consumers say they have used ‘Click and Collect’ more frequently since the start of the pandemic. Of those, 90% say they’ll continue to do so in the long-term.
3. Rising rate of returns: In the last 12 months, over half (51%) of Brits have returned items that they have bought online, compared to 47% in the same period in 2019 and 46% in 2016.
4. “Come to me” retail: Since the start of the pandemic, one in 10 (9%) consumers have used “come to me” retail, where a concierge-style service delivers clothing to customers’ homes and waits while they try it on, so that they can immediately return any items they don’t want. Meanwhile, a third (34%) of shoppers said they would be more inclined to buy from a brand offering “come to me” retail as an option.
5. Mobile payments soaring: Barclays consumer debit data reveals that Apple Pay grew rapidly in 2020 compared to 2019, in particular in Leisure & Entertainment, where online debit transactions increased by 70%.
6. Staying local: Almost two thirds (64%) of Brits are choosing to shop closer to home. Barclaycard Payments data shows shoppers spent an extra 63.3% in February 2021 at food and drink specialist stores such as butchers, bakers and greengrocers compared to last year.
7. More mindful spending: Nearly three quarters of people (71%) now think more carefully about how they spend their money and, of those, nine in ten (92%) say they’ll continue to do so even after lockdown lifts.
8. Online grocery shopping surge: Online grocery shopping has seen consistent growth over the past 12 months, with Barclaycard data revealing a 115.2% year-on-year increase in February 2021. 57% of Brits say they’ll continue to buy at least some of their groceries online even after all restrictions end.
9. Dine-at-home experiences: In an attempt to recreate the restaurant experience at home, 10% of Brits tried a DIY meal kit for the first-time during lockdown. Around a quarter (24%) of these people will continue purchasing these services after hospitality venues reopen.
10. Investing in infrastructure: Barclaycard Payments’ research with retail merchants shows that small and medium sized businesses are responding to this new landscape, with nearly three in ten (29%) planning to invest in new equipment and technology in 2021, and (13%) viewing technology as the top opportunity for growth over the next year.

If our trends highlight one thing, it’s that fast, convenient and secure shopping is no longer just a consumer preference, it is a now a universal expectation.

For merchants, this means there is a need to create better customer-focused experiences, particularly when it comes to e-commerce and payments. Technology has a huge part to play in this: for instance, payment gateways, such as Barclaycard’s own Smartpay platform, often support one-click purchases and allow buyers to pay for retail purchases with a number of different methods in a smooth, safe and seamless way.

Never in recent history have we seen the convergence of two super trends on the scale of blockchain and cryptocurrencies, and artificial intelligence (AI). The adoption of cryptocurrencies has exploded.  There are now 70 million cryptocurrency wallets, which starts to approach about 1% of the global population.  The massive influx of new users and new money has led to significant interest and support from major financial investors and institutions alike.

By Janet Adams, Consultant, International Compliance Association

Combine the developments in cryptocurrencies with the increasing use of AI and Robotics Process Automation (RPA) and it creates an interesting dynamic.  Forbes predicted: “2021 is the year when AI will go mainstream,” while a report by McKinsey stated: “Banks need to deploy AI at scale, to remain relevant and to become AI-first institutions.”

The impact of the pandemic

Covid-19 has also played its part. Previously, public perception of AI and RPA in the western world was tinged with a concern for robots stealing people’s jobs.  Now, the general public can increasingly see how technology can help keep people safe.  With Covid-19 the unimaginable happened.  Although it has resulted in catastrophic consequences, such a moment of change has also opened the door to the emergence of new technologies and business models.

Put cryptocurrencies and AI together and, as we head into the next decade, the results could be astonishing.  These seismic shifts are underpinned by enablers including cloud computing, big data, payments innovation, plus increased competition from the likes of Amazon, Apple and Google which are all entering the financial services space.  This environment is set against a backdrop of a shift in customer expectation with millennials, disillusioned with old banking structures and open to embracing new ways of managing finance and payment transactions.

Centralised finance will need to find ways to compete and thrive; for example by collaborating with decentralised finance, and working together to evolve a new world economic structure to provide better products for the societies we serve.  It is now an imperative that banks learn how to deploy AI safely and effectively, with appropriate skills and frameworks in place to maximise AI’s benefits while minimising its risks.

Regulation and ethics

However, regulation needs to keep pace and evolve to meet these changing requirements.  In 2020, I reviewed the guidance from around the world from all government and public bodies.  At the time there were in the region of 22 published speeches on the subject of risk management of AI.

My aim was to identify the requirement for safe and ethical implementation of AI in banking and how it could become compliant and ensure fair outcomes for customers, while serving market integrity.  The model I proposed at the 2020 IEEE International Conference on Fuzzy Systems inextricably links accountability and explainability as the key for successful AI implementation in financial services.  These overarching principles need to be underpinned by the right governance and compliance.

To establish risk and governance frameworks effectively, for safe and ethical implementation of AI, transparency of algorithms (and how they are used) is also important.  Human autonomy and respect in the way we ensure we are not using AI to nudge people to limit choices and reduce human self-agency is necessary.

Robustness and operational resilience of technology is critical for success, and AI implementations must be accurate and able to supply reliable results.  Fairness, reliability and accessibility is also important to ensure we are inclusive in our implementations.

From an ethical perspective, our AI implementations must benefit society as a whole and be in-line with organisational and personal principles and values to retain the authenticity of our work.

The education is there.  We all need to learn, change, adapt and grow to be part of this new movement.

The International Compliance Association (ICA) is the leading professional body for the global regulatory and financial crime compliance community, and provides support, training and qualifications to compliance professionals. 

As digital communications improvements made the work from home revolution inevitable, some employers were ahead of the curve in allowing employees to work remotely, while many clung to mandatory office attendance. Then Covid-19 swept the globe and suddenly everyone who could work remotely did so by necessity.

By Adam Glick, Chief Information Security Officer, Rocket Software

This posed a serious challenge for IT teams within the financial services industry. Historically a group prone to err on the side of caution due to the sensitivity of their data and the regulations they are mandated to follow, financial institutions scrambled to figure out how to keep the security of their systems and data intact while providing access to employees who work from home almost overnight. While telecommuting presents many challenges in terms of company culture and adaptation, it is the technological hurdle of ensuring data security as workforces migrate from the office that created the greatest risk for financial companies.

Thankfully, the modern-day terminal emulator allows remote employees to access their company mainframes no matter where they may be working that day. Replacing the remote terminals of the late ‘90s, emulators recreate the terminal interface on the user’s desktop, browser, or mobile device. But this utility and versatility is exactly why security is so vital in a work from home environment. If an employee can access the mainframe from any location, their access is only as secure as their local network. A user-friendly, feature-rich platform that is being constantly updated provides far better security than outdated emulators that aren’t kept up to date with security patches.

A Cohesive Response

Cohesion is the primary hurdle to maintaining security and continuity among a geographically widespread workforce. Without a consistent and reliable work experience for all users, controlling a company’s flow of information becomes a Tower of Babel nightmare. Security and IT professionals have no way of policing and perfecting data pipelines if every employee is using his or her own system to work from home and interface with sensitive information. If a chain is only as strong as its weakest link, a fiscal record is only as secure as its least protected remote worker’s computer. Without a reliable and uniform system through which employees can process data, this creates a chain with so many weak points that no IT department could possibly watch them all.

For a terminal emulator to guarantee the security of our financial institutions’ data, it must be just as protected at every employee’s home as it is at headquarters. Maintaining compliance with security innovations and cryptographic protocols from across the industry is therefore critical. Ideally, the IT teams setting up these security measures should be able to do so quickly and easily with a scalable, intuitive, and user-friendly system.

Ease of Use is Key

Usability is vital when choosing a terminal emulator. This translates not only into more efficient workflows and fewer lost hours, but also to a more secure operation for the institution and its employees who work from home. The easier a system is to use at the individual level, the less likely that individual is to make an error that creates a security risk. A great emulator is also highly configurable, allowing individuals to set their own environment to maximize comfort and efficiency while their supervisors or administrators can set permissions, host sessions, create new sessions, and manage multiple sessions. User authentication management is also vital to keeping data safe, and a terminal emulator should have multiple authentication fail-safes available for leaders to choose from.

Ongoing Updates

Teams have been tasked with keeping up with chaotic times, including both hectic world events and the unstoppable march of technology. If financial institutions are now responsible for reacting to the Covid crisis and its promised future of remote and hybrid workforces, the people who develop the software they rely on should be just as diligent and devoted to the solutions they provide.

New security threats emerge every day, so a terminal emulator that is regularly updated to keep up with potential security risks will benefit organisations the most. Futureproofing must also be a priority, both for leaders anticipating the next wave of change in employment management, and for software manufacturers looking to present the ideal product to security-conscious consumers.

Spreading the Solution

Even after the pandemic has been brought under control, many companies will adopt a more flexible schedule, allowing employees to work from home several days a week. To prepare for this shift, it is vital to ensure the security of our financial systems by investing in modern terminal emulation software. These systems must be customisable and easy to use to minimise learning curves and potential user error. They must also be supported by constant and forward-looking upgrades that include cutting-edge security measures to protect sensitive data. With the right technology, financial institutions have the ability to support their employees and ensure the security of valuable data—no matter where in the world their workforces happen to be.

Adam Glick is a vice president and chief of information security at Rocket Software, a Boston area-based technology company that helps organisations in the IBM ecosystem build solutions that meet today’s needs while extending the value of their technology investments for the future. Before joining Rocket Software, he served as VP of cyber risk at Brown Brothers Harriman and as head of information technology at Century Bank before that. He is also an adjunct professor at Boston College, where he teaches graduate courses in cyber security.