Protegrity Drive Growth Executive Brief

DRIVE GROWTH

BY SECURING YOUR DATA How Financial Services can Secure the Power of AI EXECUTIVE BRIEF

DRIVE GROWTH BY SECURING YOUR DATA

EXECUTIVE BRIEF

How Financial Services can Secure the Power of AI

How Financial Services can Secure the Power of AI The Terminator movie franchise depicts a dystopian future in which a rogue artificial intelligence (AI) attacks human society with time-traveling robots. While the reality of AI is probably much safer and more mundane, it’s still as exciting as an action movie for financial professionals. This is because AI enables financial institutions to leap into the future with new products and services that address customer wants and needs in ways that were never possible before. As a result, they create increased customer satisfaction and loyalty, and thus greater market share.

HOW DATA AND AI ARE RELATED IN FINANCIAL SERVICES Enterprise financial institutions process thousands, if not millions, of transactions every day that all result in the creation of data. Each time a customer makes a deposit, buys an insurance product, or sells some stock, they’re generating data. This is known as personally identifiable information (PII), and it may include customers’ names, social security numbers, and other unique data points.

Companies can use Machine Learning algorithms to analyze Big Data to reveal trends and patterns.

They can then use this information to make data-driven decisions which are smarter, faster, and more strategic than what human beings could achieve on their own without AI support. Financial institutions can use AI to identify opportunities for improved products and services. Alternatively, they can also use AI as a product or service itself.

BENEFITS OF USING AI FOR FINANCIAL INSTITUTIONS The primary benefits that financial institutions enjoy as a result of using AI are improvements to earnings and growth. This is due not only to increased efficiencies, but also the ability to target customers based on many factors combined through AI. In addition, adding more data on the cloud allows you to add storage and compute nodes dynamically. This is the concept of elasticity, and the beauty is that it comes with little effort.

1 in 4 bank executives in the U.S. said their organization used AI for fraud and security, and 30% used it for biometrics.

One example of AI as a customer-facing product or service is a mobile virtual financial assistant that combines machine learning, predictive analytics, and natural language processing. Customers BI INTELLIGENCE can interact with it through text, voice, or touchpad to process their financial transactions more easily and with greater convenience.

This includes monitoring account balances, paying bills, and checking credit scores. AI processes also support managing funds through digital wallets, selecting banking or insurance products, and purchasing and selling securities. It can also assist in creating bespoke financial instruments for high net-worth clients. Furthermore, AI can provide enhanced fraud detection and risk management services.

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DRIVE GROWTH BY SECURING YOUR DATA

EXECUTIVE BRIEF

How Financial Services can Secure the Power of AI

These AI-driven financial processes of the future are already becoming a reality in the present. In fact, according to a 2018 Digital Banking Report study by BI Intelligence, one in four bank executives in the U.S. said their organization used AI for fraud and security, and 30 percent used it for biometrics.

Financial institutions are also using AI to automate and integrate processes that would normally need to be done manually or through a series of non-integrated business units. McKinsey predicts that in the next few years, machines will do up to 10 to 25 percent of the work in financial institutions, thus freeing employees to spend more time on higher-value tasks. This percentage is likely to increase as technology becomes more sophisticated and workflows adapt to new technologies.

In the next few years, machines will do up to 10–25% of the work in financial institutions, thus freeing employees to spend more time on higher-value tasks.

MCKINSEY

RISKS AND CHALLENGES OF USING AI FOR FINANCIAL INSTITUTIONS When financial institutions use AI to collect, store, and analyze data with the intent to better serve their customers and gain business growth, an unfortunate consequence is that they also risk exposing customers’ privacy data through breaches. Hackers can make a substantial amount of money by selling this information on the black market, and there are many other social, political, and business motivations that drive them as well. As a result, financial customers’ personal information is under constant threat.

USING THE PUBLIC CLOUD TO ENABLE AI AND MACHINE LEARNING One obstacle to realizing the benefits of AI is that financial institutions’ existing data infrastructure might not be set up to store, collect, and analyze data effectively. One solution could be to migrate data storage to the cloud which has greater elasticity and more options for using AI processes to analyze data. Data, however, on a public cloud has greater visibility and could be even more exposed to breaches than on a company’s internal infrastructure.

Regardless of where data is stored, data can be a tremendous liability for financial institutions; their business is based on the intangible aspect of trust so just one breach can cause irrevocable damage to a brand’s reputation. In addition, regulations such as the GDPR are increasingly placing responsibility for data protection squarely on the institutions that collect it, with stiff penalties for noncompliance.

PROTECTING DATA TO REALIZE THE BENEFITS OF AI Financial enterprises that wish to protect data and use AI to benefit their customers face significant challenges. First, defining and discovering sensitive data can be a difficult and time-consuming process. Second, public cloud data storage providers often rely on the shared responsibility model in which they secure their cloud infrastructure but leave the responsibility of securing the data itself to those who own in. This means that if a hacker breaches your public cloud the provider is not responsible if your data is compromised. Third, implementing enterprise-wide data security protocols can be challenging and may require more resources than are available in-house.

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DRIVE GROWTH BY SECURING YOUR DATA

EXECUTIVE BRIEF

How Financial Services can Secure the Power of AI

THE PROTEGRITY SOLUTION Protegrity solves all these problems for financial enterprises because it focuses on Gartner’s DataCentric Audit and Protection (DCAP) model. This model emphasizes protecting PII and their unique identifiers themselves rather than the files in which they exist. They include: 1. Transaction models where the protection is performed in PII and the protection can be reversed.

2. Analytical systems where analysis is performed on data when the result set can be reversed to authorized users.

3. Analytical systems where anonymization takes place where you cannot reverse the data - ever.

Each model essentially means de-identification of the data, so it can’t be associated with any specific individuals to whom it belongs. Traditional data masking protects static sensitive data in non-production environments by replacing it irreversibility. Tokenization offers financial institutions the flexibility to pseudonymise data in a way that can be reversible during live processing, or irreversible for test and development purposes, as a result, your financial enterprise can enjoy the benefits of AI while minimizing the risk of a data breach. Here’s how:

• SENSITIVE DATA DISCOVERY AND CLASSIFICATION – Protegrity’s Insight tool allows you to easily discover sensitive data in database-like environments across your entire enterprise infrastructure. While this process normally takes huge investments of time and resources, with Protegrity you can find all the data you need to protect much more quickly and at a fraction of the cost.

• DATA PROTECTION THAT PROTECTS DATA EVERYWHERE, IN ANY FORM, HOWEVER IT’S USED – Protegrity protects data throughout its entire lifecycle by pseudonymizing it and using tokenization and other tactics to render data useless to hackers while preserving its value to authorized, privileged users, and for analytics. These tactics extend throughout your entire enterprise infrastructure to provide protection whether data is at rest, in motion, or under analysis thus breaking down silos that impede security.

• DEEPER LEVELS OF DATA SECURITY – You can use Protegrity’s services and products without needing to design and implement a custom solution in your own infrastructure which could be more costly and time-consuming, and perhaps riskier.

• REPORTING TO SATISFY REGULATORY COMPLIANCE – Protegrity makes it easy to report on data security for the purposes of regulatory compliance as well as internal security audits. This way, you always know where your data is and how it is protected, and you can avoid costly sanctions that negatively affect your bottom line.

• POLICY ENFORCEMENT – Protegrity’s multi-factor authentication processes ensure that only the right people have access to the right data at the right time and for the right purpose.

As a result, you never have to worry about any individual or group within your organization having too much access to information they shouldn’t have.

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DRIVE GROWTH BY SECURING YOUR DATA

EXECUTIVE BRIEF

How Financial Services can Secure the Power of AI

SECURE THE POWER OF YOUR DATA: WITHOUT COMPROMISING PERFORMANCE EASILY DISCOVER SENSITIVE DATA – Discover sensitive data using Protegrity’s Insight Tool – save time and resources to find the data you need to protect to advance your initiatives.

PROTECTS DATA NO MATTER WHERE IT TRAVELS – Your data will be protected throughout its entire lifecycle by rendering the data useless to hackers allowing you to maximize your data for analytics to retain and attract more customers.

A SOLUTION THAT ADAPTS TO ANY ENVIRONMENT – Our solution adapts to your environment - No need for a custom solution, simply drive forward to more innovation for less $ and time.

ADHERES TO REGULATORY COMPLIANCE RULES – Barriers of compliance are not a problem with our solution which gives you peace of mind to handle security audits and regulatory compliance.

ENABLES ACCESS CONTROLS TO REDUCE RISK – Protegrity’s multi-factor authentication processes helps you manage access controls to deliver a safer internal data environment.

AI FOR A SAFER, SMARTER FINANCIAL FUTURE In a world where AI and Machine Learning-driven processes are increasingly becoming the norm, it isn’t an army of nefarious robots you need to worry about, it is hackers who have no qualms about stealing personal data, and regulations like the GDPR that have no sympathy for those who do not take their responsibilities as a data custodian seriously. AI offers many benefits to financial institutions and their customers, but only if they protect their customers’ privacy appropriately.

Financial institutions now and in the future must manage huge amounts of data on elastic systems to survive and thrive in the digital marketplace. This requires strong security that enables them to secure transactional systems without negatively impacting their business processes.

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PROVEN EXPERTS IN DATA SECURITY Protegrity has been helping companies for more than 15 years to protect their data as a core business competency. We are used for public cloud environments, including AWS, by leading enterprises in the financial services, healthcare, entertainment, and gaming industries.

Each has expansive uses cases for their data that go beyond simply cutting costs and at the same time, involves ensuring that their sensitive customer data is not compromised.

Protegrity is the only enterprise data security software platform that leverages scalable, data-centric encryption, tokenization and masking to help businesses secure sensitive information while maintaining data usability. Built for complex, heterogeneous business environments, the Protegrity Data Security Platform provides unprecedented levels of data security certified across applications, data warehouses, mainframes, big data, and cloud environments. Companies trust Protegrity to help them manage risk, achieve compliance, enable business analytics, and confidently adopt new platforms.

Protegrity is headquartered in Stamford, Connecticut USA, with regional offices around the world. For additional information visit www.protegrity.com or call 1.203.326.7200.

READ MORE ABOUT HOW PROTEGRITY CAN HELP YOUR BUSINESS • Product Brief – Data Heroes Unite! Super Powers for Protecting Financial Data • White Paper – Top Ways to Leverage Data Protection • Infographic – Secure the Power of your Data: Without compromising Performance

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