Manage the cyber risk that comes with new technology, says Greg Medcraft

Internet security Banks should use new technology to service customers, but they also need to be wary of the risks posed by a dangerous cyber world.

At this moment in history, the time is ripe for digital disruption.

This is because today’s technology is yet to fully make its impact on our financial services and markets. It is also because investor trust and confidence in some sectors is low and they are looking for a better deal. They are also becoming more empowered through social media.

The great drawcard of digital disruption is the opportunity it brings. It offers new forms of access, greater competition and greater efficiency.

It also provides business with new ways of creating and sharing value with customers. For example, think of the potential of digital currencies, peer-to-peer lending and robo-financial advice.

I consider the businesses that will end up succeeding – from the incumbents and the disruptors – will be those that provide a sustainable demand-driven offering, which puts the customer’s interests at the core of what they do.

That is, those businesses which have a culture that emphasises the best interests of their customers. For example, having a culture that targets products and services to the right customers not just any customer; and putting the customer first both when things are going well but also when they are not.

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