In part one of this three part series, David Kristof, VP Services Portfolio, introduced the results of a recently commissioned study conducted by Forrester Consulting on behalf of Diebold. The study explores the challenges retail banks face managing the security of their ATM fleets. This article breaks down the statistics from the survey of over 220 business and IT decision-makers responsible for the security and management of ATMs at retail banks.
Have you ever heard the old saying, “You can do anything, but not everything?” To me, nothing sums up the objective of managed services better. That’s also why Diebold believes so strongly in collaborative innovation.
One could argue that the single largest point of failure in overcoming complex challenges is a do-it-yourself approach. After all, even painters have someone holding their ladders.
That’s why it came as no surprise when Forrester Consulting concluded its study by recommending financial institutions should strongly consider partnering on the management of their ATM fleets to improve security and mitigate future risks.
The ATM channel is critical for financial institutions. But retail banks and credit unions – both big and small – need the proper expertise, structure and processes in place to ensure full efficiency.
The Forrester study commissioned by Diebold found a large majority of the FIs surveyed use in-house resources to manage their ATM security — with an average of 21% to 30% of overall security efforts devoted to the ATM channel.
However, what’s more important to note is that of those FIs with in-house resources managing their security, a high percentage struggle to effectively deal with the multifaceted nature of ATM security.
Internal management models are often unsustainable due to challenges ranging from lack of dedicated staff to software patch frequency. The largest obstacle is the evolving threat landscape. Interestingly, the Forrester study revealed the most damaging security threats are also considered the security threats most challenging to prevent and manage.
Considering the discovery times for most information security incidents are within minutes; physical security incidents are within hours; and card threats are within days, FIs without the proper security expertise, adequate staff or internal resources are looking at significant damage to brand, reputation and long-lasting financial loss — all of which are byproducts of consumer distrust.
Quite frankly, banks and credit unions with in-house management need faster incident response times and should consider an ATM security strategy that includes collaboration with a trusted partner.
However, the perception of outsourcing to a single trusted provider and the realized benefits of partnering are at two separate ends of the spectrum.
The top anticipated benefits of outsourcing from the surveyed financial institutions with in-house management were:
- Improving reliability and consumer availability.
- Reduction in cost and resource requirements.
- Enhanced security.
While the realized benefits from the surveyed financial institutions who outsourced were:
- Enhanced security.
- Faster breach mitigation.
- Faster time-to-market with new features and functionality.
So what does this all mean? This clearly exposes the importance of managed services from a single trusted partner. We’ve seen financial institutions pinpoint the challenges of preventing and managing security threats, and acknowledge inadequate security expertise.
These complex challenges are simplified with the help of a single provider that can act as a trusted partner to help manage a financial institution’s operations. When benefits like enhanced security and faster breach mitigation are implemented – you’re not only improving security, you’re opening up the possibility to remedy breaches, eliminate future risks, keep your consumers’ trust and ensure your brand reputation stays intact.
Our comprehensive managed services suite allows financial institutions to shift their focus on consumers and their time on more profitable business opportunities. We understand both the financial self-service industry and the software, hardware and security components that keep the industry running efficiently — and our end-to-end portfolio is proof of that. We have the safest pair of hands in the industry available 24/7 to manage what you may not have the time or manpower to manage.
By shifting to a single partner, you can streamline more than just ATM network management; and the faster you partner, the more opportunities to drive efficiencies and delight your consumers.
You may not be able to do everything yourself, but together, anything is possible.
Interested in our managed services suite? Let’s talk about how a second set of eyes for security or another pair of hands for cash handling can improve the performance of your business. Start a conversation today.