Top Three Cloud Adoption Challenges in Banking and Financial Services Industry

November 30th, 2017   |     |  smarter identity

Contemporary financial organizations are adopting cloud resources to empower their businesses. Specifically, they are looking to improve productivity by ensuring their employees have the best possible tools at a reduced cost.

That said, financial enterprises still face three major challenges when making the shift to cloud, and need a solution to help resolve these issues.

Challenge One: Security and Data Privacy

Financial enterprises are responsible for managing an immense volume of highly sensitive data. Information like high net-worth individual’s financial statements or social security numbers, for example, offer an extremely high payload for cybercriminals.

It’s critical that organizations control access to corporate apps to protect this sensitive data. But according to Skyhigh Networks, only 15.4% of the cloud apps used in FinServ support MFA out of the box. Failure to address these challenges often results in:

  • Reputational Damage: Security incidents and data breaches are now newsworthy and cause serious reputational damage in proportion to the severity of the incident. This damage may have a serious impact on revenue.
  • Financial Damage: The average total cost of a data breach is $3.72M according to the Ponemon Institute ‘Cost of a Data Breach’ 2017 from IBM. For financial institutions in the United States, this number roughly triples to an average of $11M.

How Cloud IAM Helps

Account compromises and credential theft are the leading causes of data breaches. Identity and Access Management solutions like OneLogin enhance security in several ways:

  • Increase Password Security: OneLogin gives IT the power to set and enforce password requirements across the entire app portfolio, while also eliminating the need to write down or reuse passwords through Single Sign-On (SSO).
  • Lockdown Access Control: IT admins can use OneLogin to enforce access control across desktop, web, and mobile apps, as well as restrict access by geography or through IP address whitelisting.
  • Next-Level MFA: OneLogin leverages machine learning to make dynamic risk assessments, detect high-risk logins, and trigger additional authentication factors (MFA) as necessary. If a login attempt comes in from an unusual device, geographic location, browser, or IP address, the user receives an appropriate MFA response.

Challenge Two: Compliance, Auditing, and Reporting

Financial organizations are subject to internal and external audits, as well as regulations like The Payment Card Industry Data Security Standard (PCI-DSS), The Sarbanes–Oxley Act (SOX), and The Gramm–Leach–Bliley Act (GLBA). These enterprises need to not only exhibit best practices, but be able to demonstrate and document them as well. Failure to do say may result in:

  • Audit Failure: In cases of audit failure, the organization may suffer reputational damage, and shift their focus to costly and time-consuming compliance initiatives. In the case of external audit failures, organizations may receive fines and restrictions upon their business.

How Cloud IAM Helps

  • Access Control: OneLogin empowers financial organizations with Role-Based Access Control (RBAC). With OneLogin, it is incredibly easy to map users and roles to apps and permissions. Users can also be rapidly onboarded or offboarded, and only receive the necessary levels of access to the necessary apps.
  • Advanced Reporting: OneLogin helps organizations demonstrate their identity and access management practices through easy-to-consume reporting and dashboard capabilities. Additionally, OneLogin is sends real-time event data to Security Information and Event Management (SIEM) solutions like Splunk and Sumo Logic for more thorough events reporting, analysis, and data correlation.

Challenge Three: Lost Productivity and Competitive Edge

Organizations need to optimize employee productivity to maintain an advantage within the intensely competitive financial industry. There are instances where just a few seconds difference can have massive financial implications. Many organizations suffer from:

  • Lost IT Productivity: The average time it takes to integrate new systems with homegrown single sign-on is 16 hours. Imagine what else your IT team could be doing with this time instead.
  • Lost User Productivity: Many organizations are still using legacy tools that lack the productivity benefits of cloud apps such as ubiquitous access and ease of collaboration. When was the last time you touched a fax machine? This ultimately results in wasted time, and by extension, lost opportunity.
  • Shadow IT: If users do not receive the tools they need to work efficiently and effectively, they will find workarounds and circumvent sanctioned tools (eg, Shadow IT). This ultimately leads to both lost productivity and security vulnerability.

How Cloud IAM Can Help

  • Expedited IT Processes: Instead of 16 hours, Forrester estimates that the average time to integrate new systems with OneLogin is just one hour. New user onboarding takes minutes, and provisioning can be modified in real time.
  • Savings in Admin Desk Labor: Forrester Research has determined the service desk cost of a request for password reset is $25. If your coworkers forget their passwords and submit helpdesk tickets once a year, that alone results in an annual cost of $12,500 (500 users), or $25,000 (1,000 users), and so on.
  • Single Sign-On for Users: OneLogin provides employees with one secure password and portal to access all apps on a single screen from both desktop and mobile devices. Forrester estimates that the average user spends 3 minutes logging into apps each day. Assuming that your organization employs 200 people with an average labor cost of $25/hour, cutting down that time translates to an annual benefit of $59,220.
  • Stop Shadow IT at the Source: OneLogin removes all reasons for end users to circumvent identity policy. OneLogin makes it quick and easy for users to add new apps to their single sign-on portals, and access them with a single click.

Why Finance Orgs are Choosing Cloud-Based IAM

In summary, OneLogin helps organizations like Dun & Bradstreet, Zurich Insurance, PennyMac, and many others reduce security and compliance risk, increase IT efficiency, enhance user productivity, and reduce costs.

OneLogin is perfect for Financial Services companies who:
- Handle a high volume of sensitive and regulated data within cloud apps
- Must satisfy internal and external compliance regulations around secure data and app access
- Want to improve user productivity and reduce technology friction
- Want to drive cloud adoption without fear of security concerns

Unlike other Identity and Access Management solution, OneLogin:
- Has a catalog of over 5,000 pre-integrated apps to make Single Sign-On easy for employees regardless of location, device, or app,
- Provides adaptive multi-factor authentication powered by machine learning for identity assurance, and
- Centralizes identity management by synchronizing directories in real-time 

Want to learn more? Click the button below to get a free OneLogin demo.

About the Author

Jack Shepherd joined the OneLogin team in Summer of 2015, and is now the Content Marketing Lead at OneLogin. Jack specializes in producing thought leadership pieces around the latest cloud technologies, cybersecurity, and the evolving role of unified access management.

View all posts by Jack Shepherd

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