The dollar engine

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KUMAR: Information security is a cultural thing in the financial industry, especially compared to other sectors.

The financial sector has developed a reputation for having demanding and unique IT requirements, but is this all talk and no substance? Nathan Statz reports.

One of the most stressful jobs around is supposed to be an air traffic controller, constantly fretting about the giant birds of steel that are circling overhead, often filled to the brim with humanity. But spare a thought for the finance sector professionals that provide the insurance and funding for every facet of business, from the controller’s potential for malpractice down to the cashew nuts they serve on the aircraft.

When you really start to examine the machinations of an enterprise – airborne or otherwise – it is easy to see that the financial sector is involved in everything you see and touch. Even the simplest of business tools such as a keyboard or a pen were manufactured by a company that relies on the financial sector, so it is fairly unsurprising that this particular vertical is seen as a little bit different.

The financial industry is a familiar playground for Santosh Babu, who has more than ten years experience as a CIO of regional banks like Al Masraf and RAK Bank. Babu is now the MD of his own advisory firm, Saapa Consulting Technologies, and sees a lot of difference between the financial sector and other verticals.

“From a vendor point of view, dealing with banks and other companies might see us demand more. We are probably very demanding types of users, but that’s also because the money we pay for it is different to most other organisations of the same size from another sector,” he says.

“When you are spending that amount of course your demands will be different. You want a 24/7 support structure, which is not always the case in other verticals. We insist on 24/7 because you have internet and phone banking available 24/7 so you need your vendors to provide a level of support,” adds Babu.

One of the biggest differentiators for the organisations who play with other people’s money is security. The sheer amount of sensitive data being generated and transferred around creates serious risk. Every branch of a bank is flush with computers and terminals that are whisking important details into storage disks, not to mention the automated systems transferring decimal points that represent a fortune in operating capital. With this comes the need for pricey security systems and CIOs will often go over the vendor agreement with a fine-tooth comb to ensure the solution will be up to scratch.

“You are playing with money, so security is of a higher importance compared to many industries. This is why you will see that the IT department in a bank will always have a separate division for IT security. Typically you will even find a chief information security officer heading that function with a few guys,” explains Babu.

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