Upping investment in cyber security and refreshing datacentres
Cyber security: HSBC will doubtlessly be paying greater attention to cyber security following a data breach last month that saw unauthorised users gain access to financial and personal information including customers’ phone, address and account details. Initially responding with the fortification of log-in and authentication processes and adding additional security layers for digital and mobile access, the bank will now explore next-gen security solutions and multi-factor authentication in a bid to avoid a repeat incident. Five million HSBC customers currently use voice recognition, while finger-print technology has also been launched in nine markets. The bank appointed Stephen Kahn as Head of Technology & Cyber Security Risk in February, bringing significant experience from previous roles at RBS and GSK.
Innovative tech: Contributing to its wider digital transformation, we believe that the bank will be exploring technology to support its two-year strategy to improve efficiency, lower costs and enhance the service it provides to customers. Our research suggests that there will be a particular interest in iCloud storage and data collection. In the US it has partnered with wealth management firm Marstone to develop an investment advice platform, HSBC Wealth Track, incorporating robotics technology. It has a strategic partnership with Alibaba, who will help develop the bank’s IT services, and is building its own digital-only banking startup for small businesses, “Project Iceberg”, to fend off competition from digital disruptors.
Having fallen behind chief competitors such as Lloyds in the digitisation space, HSBC will be looking for ways that it can differentiate and gain an advantage within the sector. Over the last year it has been busy replacing portions of its legacy infrastructure, while it is planning a datacentre refresh next year. With the company’s datacentres currently on-premise the refresh will be a particularly mammoth project and likely to raise the question of whether to migrate to a hosted platform.
Financial year end: December 31st
IT suppliers: IBM, AWS, Quantexa
New appointments this year:
Head of Technology & Cyber Security Risk – Stephen Kahn
Global CTO – Dinesh Keswani
Other key contacts:
Group CISO – Alison Vincent
Group CIO – Darryl West