The future of wealth management

Securing Your Customersrsquo Future

The digital banking landscape

Wealth management trends

Challengesand opportunities

Digital transformation with HID Global

IntroductionThough the wealth and asset management industries are in growth mode (expected average rate of 771) this is no time for complacency as the industry faces both headwinds and opportunities2

The traditional client base in the wealth management industry is shifting and firms can expect to see a rise of younger technologically savvier and more digitally inclined clientele This raises the need for companies to offer greater standardization and personalization of services ranging from cash-flow planning financial plan development and advice on retirement across all digital channels

The acceleration in global HNWI (High Net Worth Individuals) wealth accompanied by rising operational costs (a result of stringent regulations technology infrastructure rising personnel costs and higher settlement cost1) contribute to the emergence of new business models and trends

To compliment this need new regulatory reforms help to contain risk and better protect the customer

40 of Generation Y hold assets in cash440

90 of Generation Y distrust the stock market490

75 of discretionary spending will be controlled by women by 20185

75

2

Hyper-connected world on the move

Increasingly competitive landscapes

Ever-increasing fraud across multiple channels

New regulations

12

3

The digital banking landscapeThe wealth management industry is facing significant challenges long-standing regulatory and cost pressures Increasing commoditization of core services and the entry of new competition including automated advisory services are changing the traditional model of wealth management6

Additionally The World Wealth Report 20156 found the wealth manager role is evolving due to ongoing challenges and more recent threats from new entrants

Financial institutions are expected to embrace the growth of mobile and increase their protection against fraud while striving in a competitive market and aiming to meet the requirements of upcoming regulations

The complexity of HNWI wealth demands strategic action By integrating new business models into an organizational strategy financial institutions can increase revenues and optimize their operational efficiency

3

Market Trends

4

Trend 1

Hyper-connected world on the moveWith the rapid rise of smartphones and tablets tech-savvy HNWIs are expecting a richer and more dynamic user experience via mobile applications The demand for mobile app services is so acute that 80 of HNWIs under 40 years of age indicated they would leave their wealth management firm if it fails to provide an integrated channel experience1

Although more than 80 of wealth managers recognize the positive impact digital tools can have on client interactions as well as their overall ability to

do their job7 many face the task of differentiating their services from competitors To remain competitive organizations should develop strategies that take advantage of new technology and innovation Globally 486 of HNWIs say they would consider using automated advisors for a portion of their portfolio and close to 50 nd lower costs and higher convenience as the primary reasons1

642of affluent individuals expect future wealth management relationships to be digital1

DriversThe use of technology by millennials has led to investment in digital and self-service capabilities As tech-savvy customers expect transparency flexibility and fixed fee models organizations should diversify their portfolio through value-added services to drive value and customer retention

Womenrsquos wealth and income are set to change the industry as they take an active role in managing their wealth presenting new values needs goalsand challenges

654of wealthy people would leave wealth management firms if integrated channel experience is not provided1

5

Competitive pressure in the financial services industry is only going to increase in importance in particular with the growing interest of HNWI on innovative services offered by FinTechs including automated advice platforms and peer-to-peer open investment communities Global HNWI demand for automated advisory services has increased from 486 in 2015 to 669 in 2016 while 475 of HNWIs use online peer-to-peer platforms at least weekly to find out about investment ideas7

Technology-driven start-ups and FinTech companies are increasingly eroding pricing power while raising the bar for better and faster wealth management services Nevertheless a survey by PwC Global8 showed that most wealth managers (75) view the impact of FinTech as

the need to adapt to changing customer needs while 50 think new entrants can enhance interactions and trusted relationships

High demand for customized and personalized services through online and mobile channels from customers coupled with the rapid growth of the family office industry are factors that will help push automated advice into mainstream adoption in the future

DriversOrganizations are challenged to take a proactive approach to developing innovative offerings Adoption of a lsquoutility modelrsquo in wealth management will help to improve efficiency and reduce operational costs and risks This involves sharing of costs with other banks on joint platforms for various front-office functions or back-of-office related processes such as corporate actions statements reporting and account aggregation1

Expected global growth of hybrid robo-advisors by 20209

42Percentage of wealthmanagers outsourcingnon-core functions9

Trend 2

Market landscape$37trillion

6

According to Ernst amp Young (2016) clients consider digital to be a primary channel for advice not just for service3 Subsequently there has been a rise in focus on cyber security by wealth management firms1

Firms are facing challenges of protecting their systems against data theft while safeguarding security and privacy of client information as well as providing their clients with secured access for interacting and transacting purposes Data thefts at firms result in tax investigations fines and loss of brand reputation Thus security costs could end up representing about 30 of private banksrsquo technology budgets10

The Securities and Exchange Commission (SEC) andFinancial Industry RegulatoryAuthority (FINRA) require organizations to have adequate procedures and systems that keep cyber threats in check

DriversThe proliferation of digital channels among HNWIs requires heightened security to prevent leakage of sensitive customer information Organizations need to protect their brand reputation and the trust of their clients by offering innovative services in real-time through encrypted channels

Trend 3

Increasing risk of fraud across channels

Percentage of HNWIs who rate theft as theirtop concern10

Security cost within private banksrsquo technology budget10

Average cost of a security breach11

$38million

30

51

7

Considering the increasing regulations and challenges facing the industry global wealth management players are reassessing their international operations In this highly regulated market firms are experiencing a rise in their compliance costs and are exploring options to manage these costs

The MiFID (Markets in Financial Instruments Directive) framework creates market structures by improving investorsrsquo protection and increasing transparency New changes to the MiFID framework have impacts the wealth management industry in 2017 Thus banks should consider reviewing their business and pricing models5

Over the last decade there have been continuedadvances in policies to increase international co-operation in tax matters and tax transparency16 Evolving international regulations like FATCA (Foreign Account Tax Compliance Act) and CRS (Common Reporting Standards) are challenging organizations to implement new procedures to remain compliant

Trend 4

Regulatory changes and complexity

DriversCompliance with a high volume and breadth of regulations requires a significant amount of investment in technology and operations11 Firms should look to increase the notion that financial advisors are making recommendations that are in the best interest of their clients

Increasing regulations

Rising compliance costs

8

Rest of the world Many of the emerging markets such as Africa and the Middle East are currently under extreme civil unrest making the application of national and regional regulation extremely challenging

Asia Pacific Initiatives in place to reduce bureaucracy speed up the process of bringing new products to market and stimulate market activity within the jurisdiction by attracting more participants

Europe UCITS AIFMD EMIR extraterritorial Dodd-Frank FATCA Basel III plus MiFD II PRIPs MAD II AMLD and especially FTT will contribute to a complex period of regulatory reform over the next three to five years

Latin America Improved regulatory regimes with the intention to come into effect with the G20 recommendations

North America Dodd-Frank Act Basel III AIFMD FTT and IFRS Convergence likely to dominate

Trend 4

Regulatory changes and complexity

9

Challenges Competitive pressure and increasing client sophistication are driving the need for firms to preserve profits and build trust with customers both are key to greater digital maturity which is essential for growth By implementing a successful digital strategy organizations can simplify processes and thus generate savings which will ultimately reflect on their top-line revenue and bottom-line gains3

Lack of in-house technology skills

Legacy of IT

Rebuilding trust in financial institutions

Increased demand to deliver services online

CHALLENGES

Mobility

Competition

Increased fraud

Regulations amp compliance

TRENDS

10

OpportunitiesChanging consumer behavior creates new expectations for stronger interaction through digital channels Customers require flexible services to access account information and portfolio performance or to directly seek advice or interact with anadvisor Firms must provide a compelling user experience while simultaneously reducing costs and improving front-to-back-office efficiency1

Preserving reputation and protecting the brand

Developing innovative products while delivering a compelling experience

Decreasing the cost of fines while improving operational efficiency

Engaging with emerging consumers of financewealth management services

OPPORTUNITIES

Mobility

Competition

Increased fraud

Regulations amp compliance

TRENDS

11

Digital Transformation with HID Global

12

Application security

Transactional signing and pattern-based intelligence

Browser protection

Device authentication

User authentication (MFA)

bull Something you know (passwords)

bull Something you have (token)

bull Something you are (biometrics behaviour metrics)

Adaptive multi-layered authenticationWith HID Global financial institutions can inspire confidence and increase adoption of online and mobile channels by offering their customers a worry-free secure and convenient experience which in turn contributes to their bottom line

Our solutions comply with the key banking authentication regulations around the world offering an unparalleled user experience ideal for banks and financial organizations looking to enhance their digital offering while increasing security for the customer

Our approach enables multi-factor authentication for all leading mobile phones and tablets and has a pluggable platform that is extensible for future authentication methods In a landscape of evolving threats banks should embrace regulatory changes and complexities to contain risk and protect their customers

HID Global Adaptive Security approach

13

Secure omni-channel banking

Methods

One-timepassword

Static credentials

Pushnotification

Out of band

Behaviouralanalysis

Certificates

Threat detection

Biometry

Branch ATM Landline eBanking mBanking eCommerce POS

HID Globalrsquos ActivIDreg Authentication Server and Threat Detection Service provide corporate financial and government organizations with risk-appropriate cost-efficient user authentication The solution enables end users to have convenient anytime anywhere access to sensitive data from their smartphones tablets computers and virtually anyother device

Deployment is simplified too through the platformrsquos pre-integration with major cloud apps VPN systems application servers banking applications and other third-party systems

As banks enhance online and mobile channels in response to competition and user demand they must successfully address risks associated with authenticating their customers and employees and integrate their front and back-end systems with acentral ActivIDreg Authentication Server

The HID Global approach

14

Transaction signing

With HID Approve customers can validate transactions in real time eliminating discrepancies from paper signatures in batches at the end of a period For each transaction the customer receives a notification immediately and approves it in real time Orders are processed upon identity verification and validation of the user requesting the transaction

Banking anytime anywhere

Millennials impose new requirements on wealth managers and their demand for technological advances and online platforms are shaping the financial services industry Womenrsquos wealth and income are also growing faster than ever Recent research suggests that women may soon control the majority of UShousehold wealth12

Mutual authentication over the phone

Dedicated relationship managers must ensure that they keep a close relationship with their customers To manage their wealth clients require secure ways (ie instant mutual authentication) of validating transactions over the phone Relationship managers must verify the identity of these customers to ensure the safety of the data and to protect against fraud

Use cases

15

GET IN TOUCHIf you would like to find out how you can provide your customers with a more secure and convenient banking experience you can now request a free consultation

wwwhidglobalcom

Request consultationActivIDreg Trusted

Transactions

ActivIDreg

Threat Detection Service

ActivIDreg

Authentication Platform

Additional resources

INFOGRAPHIC

Top 5 Considerations What to Look for in a Mobile Banking Security Solution

INFOGRAPHIC

FAQ Why Banks Need a Dedicated Mobile Banking Security System

16

IntroductionThough the wealth and asset management industries are in growth mode (expected average rate of 771) this is no time for complacency as the industry faces both headwinds and opportunities2

The traditional client base in the wealth management industry is shifting and firms can expect to see a rise of younger technologically savvier and more digitally inclined clientele This raises the need for companies to offer greater standardization and personalization of services ranging from cash-flow planning financial plan development and advice on retirement across all digital channels

The acceleration in global HNWI (High Net Worth Individuals) wealth accompanied by rising operational costs (a result of stringent regulations technology infrastructure rising personnel costs and higher settlement cost1) contribute to the emergence of new business models and trends

To compliment this need new regulatory reforms help to contain risk and better protect the customer

40 of Generation Y hold assets in cash440

90 of Generation Y distrust the stock market490

75 of discretionary spending will be controlled by women by 20185

75

2

Hyper-connected world on the move

Increasingly competitive landscapes

Ever-increasing fraud across multiple channels

New regulations

12

3

The digital banking landscapeThe wealth management industry is facing significant challenges long-standing regulatory and cost pressures Increasing commoditization of core services and the entry of new competition including automated advisory services are changing the traditional model of wealth management6

Additionally The World Wealth Report 20156 found the wealth manager role is evolving due to ongoing challenges and more recent threats from new entrants

Financial institutions are expected to embrace the growth of mobile and increase their protection against fraud while striving in a competitive market and aiming to meet the requirements of upcoming regulations

The complexity of HNWI wealth demands strategic action By integrating new business models into an organizational strategy financial institutions can increase revenues and optimize their operational efficiency

3

Market Trends

4

Trend 1

Hyper-connected world on the moveWith the rapid rise of smartphones and tablets tech-savvy HNWIs are expecting a richer and more dynamic user experience via mobile applications The demand for mobile app services is so acute that 80 of HNWIs under 40 years of age indicated they would leave their wealth management firm if it fails to provide an integrated channel experience1

Although more than 80 of wealth managers recognize the positive impact digital tools can have on client interactions as well as their overall ability to

do their job7 many face the task of differentiating their services from competitors To remain competitive organizations should develop strategies that take advantage of new technology and innovation Globally 486 of HNWIs say they would consider using automated advisors for a portion of their portfolio and close to 50 nd lower costs and higher convenience as the primary reasons1

642of affluent individuals expect future wealth management relationships to be digital1

DriversThe use of technology by millennials has led to investment in digital and self-service capabilities As tech-savvy customers expect transparency flexibility and fixed fee models organizations should diversify their portfolio through value-added services to drive value and customer retention

Womenrsquos wealth and income are set to change the industry as they take an active role in managing their wealth presenting new values needs goalsand challenges

654of wealthy people would leave wealth management firms if integrated channel experience is not provided1

5

Competitive pressure in the financial services industry is only going to increase in importance in particular with the growing interest of HNWI on innovative services offered by FinTechs including automated advice platforms and peer-to-peer open investment communities Global HNWI demand for automated advisory services has increased from 486 in 2015 to 669 in 2016 while 475 of HNWIs use online peer-to-peer platforms at least weekly to find out about investment ideas7

Technology-driven start-ups and FinTech companies are increasingly eroding pricing power while raising the bar for better and faster wealth management services Nevertheless a survey by PwC Global8 showed that most wealth managers (75) view the impact of FinTech as

the need to adapt to changing customer needs while 50 think new entrants can enhance interactions and trusted relationships

High demand for customized and personalized services through online and mobile channels from customers coupled with the rapid growth of the family office industry are factors that will help push automated advice into mainstream adoption in the future

DriversOrganizations are challenged to take a proactive approach to developing innovative offerings Adoption of a lsquoutility modelrsquo in wealth management will help to improve efficiency and reduce operational costs and risks This involves sharing of costs with other banks on joint platforms for various front-office functions or back-of-office related processes such as corporate actions statements reporting and account aggregation1

Expected global growth of hybrid robo-advisors by 20209

42Percentage of wealthmanagers outsourcingnon-core functions9

Trend 2

Market landscape$37trillion

6

According to Ernst amp Young (2016) clients consider digital to be a primary channel for advice not just for service3 Subsequently there has been a rise in focus on cyber security by wealth management firms1

Firms are facing challenges of protecting their systems against data theft while safeguarding security and privacy of client information as well as providing their clients with secured access for interacting and transacting purposes Data thefts at firms result in tax investigations fines and loss of brand reputation Thus security costs could end up representing about 30 of private banksrsquo technology budgets10

The Securities and Exchange Commission (SEC) andFinancial Industry RegulatoryAuthority (FINRA) require organizations to have adequate procedures and systems that keep cyber threats in check

DriversThe proliferation of digital channels among HNWIs requires heightened security to prevent leakage of sensitive customer information Organizations need to protect their brand reputation and the trust of their clients by offering innovative services in real-time through encrypted channels

Trend 3

Increasing risk of fraud across channels

Percentage of HNWIs who rate theft as theirtop concern10

Security cost within private banksrsquo technology budget10

Average cost of a security breach11

$38million

30

51

7

Considering the increasing regulations and challenges facing the industry global wealth management players are reassessing their international operations In this highly regulated market firms are experiencing a rise in their compliance costs and are exploring options to manage these costs

The MiFID (Markets in Financial Instruments Directive) framework creates market structures by improving investorsrsquo protection and increasing transparency New changes to the MiFID framework have impacts the wealth management industry in 2017 Thus banks should consider reviewing their business and pricing models5

Over the last decade there have been continuedadvances in policies to increase international co-operation in tax matters and tax transparency16 Evolving international regulations like FATCA (Foreign Account Tax Compliance Act) and CRS (Common Reporting Standards) are challenging organizations to implement new procedures to remain compliant

Trend 4

Regulatory changes and complexity

DriversCompliance with a high volume and breadth of regulations requires a significant amount of investment in technology and operations11 Firms should look to increase the notion that financial advisors are making recommendations that are in the best interest of their clients

Increasing regulations

Rising compliance costs

8

Rest of the world Many of the emerging markets such as Africa and the Middle East are currently under extreme civil unrest making the application of national and regional regulation extremely challenging

Asia Pacific Initiatives in place to reduce bureaucracy speed up the process of bringing new products to market and stimulate market activity within the jurisdiction by attracting more participants

Europe UCITS AIFMD EMIR extraterritorial Dodd-Frank FATCA Basel III plus MiFD II PRIPs MAD II AMLD and especially FTT will contribute to a complex period of regulatory reform over the next three to five years

Latin America Improved regulatory regimes with the intention to come into effect with the G20 recommendations

North America Dodd-Frank Act Basel III AIFMD FTT and IFRS Convergence likely to dominate

Trend 4

Regulatory changes and complexity

9

Challenges Competitive pressure and increasing client sophistication are driving the need for firms to preserve profits and build trust with customers both are key to greater digital maturity which is essential for growth By implementing a successful digital strategy organizations can simplify processes and thus generate savings which will ultimately reflect on their top-line revenue and bottom-line gains3

Lack of in-house technology skills

Legacy of IT

Rebuilding trust in financial institutions

Increased demand to deliver services online

CHALLENGES

Mobility

Competition

Increased fraud

Regulations amp compliance

TRENDS

10

OpportunitiesChanging consumer behavior creates new expectations for stronger interaction through digital channels Customers require flexible services to access account information and portfolio performance or to directly seek advice or interact with anadvisor Firms must provide a compelling user experience while simultaneously reducing costs and improving front-to-back-office efficiency1

Preserving reputation and protecting the brand

Developing innovative products while delivering a compelling experience

Decreasing the cost of fines while improving operational efficiency

Engaging with emerging consumers of financewealth management services

OPPORTUNITIES

Mobility

Competition

Increased fraud

Regulations amp compliance

TRENDS

11

Digital Transformation with HID Global

12

Application security

Transactional signing and pattern-based intelligence

Browser protection

Device authentication

User authentication (MFA)

bull Something you know (passwords)

bull Something you have (token)

bull Something you are (biometrics behaviour metrics)

Adaptive multi-layered authenticationWith HID Global financial institutions can inspire confidence and increase adoption of online and mobile channels by offering their customers a worry-free secure and convenient experience which in turn contributes to their bottom line

Our solutions comply with the key banking authentication regulations around the world offering an unparalleled user experience ideal for banks and financial organizations looking to enhance their digital offering while increasing security for the customer

Our approach enables multi-factor authentication for all leading mobile phones and tablets and has a pluggable platform that is extensible for future authentication methods In a landscape of evolving threats banks should embrace regulatory changes and complexities to contain risk and protect their customers

HID Global Adaptive Security approach

13

Secure omni-channel banking

Methods

One-timepassword

Static credentials

Pushnotification

Out of band

Behaviouralanalysis

Certificates

Threat detection

Biometry

Branch ATM Landline eBanking mBanking eCommerce POS

HID Globalrsquos ActivIDreg Authentication Server and Threat Detection Service provide corporate financial and government organizations with risk-appropriate cost-efficient user authentication The solution enables end users to have convenient anytime anywhere access to sensitive data from their smartphones tablets computers and virtually anyother device

Deployment is simplified too through the platformrsquos pre-integration with major cloud apps VPN systems application servers banking applications and other third-party systems

As banks enhance online and mobile channels in response to competition and user demand they must successfully address risks associated with authenticating their customers and employees and integrate their front and back-end systems with acentral ActivIDreg Authentication Server

The HID Global approach

14

Transaction signing

With HID Approve customers can validate transactions in real time eliminating discrepancies from paper signatures in batches at the end of a period For each transaction the customer receives a notification immediately and approves it in real time Orders are processed upon identity verification and validation of the user requesting the transaction

Banking anytime anywhere

Millennials impose new requirements on wealth managers and their demand for technological advances and online platforms are shaping the financial services industry Womenrsquos wealth and income are also growing faster than ever Recent research suggests that women may soon control the majority of UShousehold wealth12

Mutual authentication over the phone

Dedicated relationship managers must ensure that they keep a close relationship with their customers To manage their wealth clients require secure ways (ie instant mutual authentication) of validating transactions over the phone Relationship managers must verify the identity of these customers to ensure the safety of the data and to protect against fraud

Use cases

15

GET IN TOUCHIf you would like to find out how you can provide your customers with a more secure and convenient banking experience you can now request a free consultation

wwwhidglobalcom

Request consultationActivIDreg Trusted

Transactions

ActivIDreg

Threat Detection Service

ActivIDreg

Authentication Platform

Additional resources

INFOGRAPHIC

Top 5 Considerations What to Look for in a Mobile Banking Security Solution

INFOGRAPHIC

FAQ Why Banks Need a Dedicated Mobile Banking Security System

16

Hyper-connected world on the move

Increasingly competitive landscapes

Ever-increasing fraud across multiple channels

New regulations

12

3

The digital banking landscapeThe wealth management industry is facing significant challenges long-standing regulatory and cost pressures Increasing commoditization of core services and the entry of new competition including automated advisory services are changing the traditional model of wealth management6

Additionally The World Wealth Report 20156 found the wealth manager role is evolving due to ongoing challenges and more recent threats from new entrants

Financial institutions are expected to embrace the growth of mobile and increase their protection against fraud while striving in a competitive market and aiming to meet the requirements of upcoming regulations

The complexity of HNWI wealth demands strategic action By integrating new business models into an organizational strategy financial institutions can increase revenues and optimize their operational efficiency

3

Market Trends

4

Trend 1

Hyper-connected world on the moveWith the rapid rise of smartphones and tablets tech-savvy HNWIs are expecting a richer and more dynamic user experience via mobile applications The demand for mobile app services is so acute that 80 of HNWIs under 40 years of age indicated they would leave their wealth management firm if it fails to provide an integrated channel experience1

Although more than 80 of wealth managers recognize the positive impact digital tools can have on client interactions as well as their overall ability to

do their job7 many face the task of differentiating their services from competitors To remain competitive organizations should develop strategies that take advantage of new technology and innovation Globally 486 of HNWIs say they would consider using automated advisors for a portion of their portfolio and close to 50 nd lower costs and higher convenience as the primary reasons1

642of affluent individuals expect future wealth management relationships to be digital1

DriversThe use of technology by millennials has led to investment in digital and self-service capabilities As tech-savvy customers expect transparency flexibility and fixed fee models organizations should diversify their portfolio through value-added services to drive value and customer retention

Womenrsquos wealth and income are set to change the industry as they take an active role in managing their wealth presenting new values needs goalsand challenges

654of wealthy people would leave wealth management firms if integrated channel experience is not provided1

5

Competitive pressure in the financial services industry is only going to increase in importance in particular with the growing interest of HNWI on innovative services offered by FinTechs including automated advice platforms and peer-to-peer open investment communities Global HNWI demand for automated advisory services has increased from 486 in 2015 to 669 in 2016 while 475 of HNWIs use online peer-to-peer platforms at least weekly to find out about investment ideas7

Technology-driven start-ups and FinTech companies are increasingly eroding pricing power while raising the bar for better and faster wealth management services Nevertheless a survey by PwC Global8 showed that most wealth managers (75) view the impact of FinTech as

the need to adapt to changing customer needs while 50 think new entrants can enhance interactions and trusted relationships

High demand for customized and personalized services through online and mobile channels from customers coupled with the rapid growth of the family office industry are factors that will help push automated advice into mainstream adoption in the future

DriversOrganizations are challenged to take a proactive approach to developing innovative offerings Adoption of a lsquoutility modelrsquo in wealth management will help to improve efficiency and reduce operational costs and risks This involves sharing of costs with other banks on joint platforms for various front-office functions or back-of-office related processes such as corporate actions statements reporting and account aggregation1

Expected global growth of hybrid robo-advisors by 20209

42Percentage of wealthmanagers outsourcingnon-core functions9

Trend 2

Market landscape$37trillion

6

According to Ernst amp Young (2016) clients consider digital to be a primary channel for advice not just for service3 Subsequently there has been a rise in focus on cyber security by wealth management firms1

Firms are facing challenges of protecting their systems against data theft while safeguarding security and privacy of client information as well as providing their clients with secured access for interacting and transacting purposes Data thefts at firms result in tax investigations fines and loss of brand reputation Thus security costs could end up representing about 30 of private banksrsquo technology budgets10

The Securities and Exchange Commission (SEC) andFinancial Industry RegulatoryAuthority (FINRA) require organizations to have adequate procedures and systems that keep cyber threats in check

DriversThe proliferation of digital channels among HNWIs requires heightened security to prevent leakage of sensitive customer information Organizations need to protect their brand reputation and the trust of their clients by offering innovative services in real-time through encrypted channels

Trend 3

Increasing risk of fraud across channels

Percentage of HNWIs who rate theft as theirtop concern10

Security cost within private banksrsquo technology budget10

Average cost of a security breach11

$38million

30

51

7

Considering the increasing regulations and challenges facing the industry global wealth management players are reassessing their international operations In this highly regulated market firms are experiencing a rise in their compliance costs and are exploring options to manage these costs

The MiFID (Markets in Financial Instruments Directive) framework creates market structures by improving investorsrsquo protection and increasing transparency New changes to the MiFID framework have impacts the wealth management industry in 2017 Thus banks should consider reviewing their business and pricing models5

Over the last decade there have been continuedadvances in policies to increase international co-operation in tax matters and tax transparency16 Evolving international regulations like FATCA (Foreign Account Tax Compliance Act) and CRS (Common Reporting Standards) are challenging organizations to implement new procedures to remain compliant

Trend 4

Regulatory changes and complexity

DriversCompliance with a high volume and breadth of regulations requires a significant amount of investment in technology and operations11 Firms should look to increase the notion that financial advisors are making recommendations that are in the best interest of their clients

Increasing regulations

Rising compliance costs

8

Rest of the world Many of the emerging markets such as Africa and the Middle East are currently under extreme civil unrest making the application of national and regional regulation extremely challenging

Asia Pacific Initiatives in place to reduce bureaucracy speed up the process of bringing new products to market and stimulate market activity within the jurisdiction by attracting more participants

Europe UCITS AIFMD EMIR extraterritorial Dodd-Frank FATCA Basel III plus MiFD II PRIPs MAD II AMLD and especially FTT will contribute to a complex period of regulatory reform over the next three to five years

Latin America Improved regulatory regimes with the intention to come into effect with the G20 recommendations

North America Dodd-Frank Act Basel III AIFMD FTT and IFRS Convergence likely to dominate

Trend 4

Regulatory changes and complexity

9

Challenges Competitive pressure and increasing client sophistication are driving the need for firms to preserve profits and build trust with customers both are key to greater digital maturity which is essential for growth By implementing a successful digital strategy organizations can simplify processes and thus generate savings which will ultimately reflect on their top-line revenue and bottom-line gains3

Lack of in-house technology skills

Legacy of IT

Rebuilding trust in financial institutions

Increased demand to deliver services online

CHALLENGES

Mobility

Competition

Increased fraud

Regulations amp compliance

TRENDS

10

OpportunitiesChanging consumer behavior creates new expectations for stronger interaction through digital channels Customers require flexible services to access account information and portfolio performance or to directly seek advice or interact with anadvisor Firms must provide a compelling user experience while simultaneously reducing costs and improving front-to-back-office efficiency1

Preserving reputation and protecting the brand

Developing innovative products while delivering a compelling experience

Decreasing the cost of fines while improving operational efficiency

Engaging with emerging consumers of financewealth management services

OPPORTUNITIES

Mobility

Competition

Increased fraud

Regulations amp compliance

TRENDS

11

Digital Transformation with HID Global

12

Application security

Transactional signing and pattern-based intelligence

Browser protection

Device authentication

User authentication (MFA)

bull Something you know (passwords)

bull Something you have (token)

bull Something you are (biometrics behaviour metrics)

Adaptive multi-layered authenticationWith HID Global financial institutions can inspire confidence and increase adoption of online and mobile channels by offering their customers a worry-free secure and convenient experience which in turn contributes to their bottom line

Our solutions comply with the key banking authentication regulations around the world offering an unparalleled user experience ideal for banks and financial organizations looking to enhance their digital offering while increasing security for the customer

Our approach enables multi-factor authentication for all leading mobile phones and tablets and has a pluggable platform that is extensible for future authentication methods In a landscape of evolving threats banks should embrace regulatory changes and complexities to contain risk and protect their customers

HID Global Adaptive Security approach

13

Secure omni-channel banking

Methods

One-timepassword

Static credentials

Pushnotification

Out of band

Behaviouralanalysis

Certificates

Threat detection

Biometry

Branch ATM Landline eBanking mBanking eCommerce POS

HID Globalrsquos ActivIDreg Authentication Server and Threat Detection Service provide corporate financial and government organizations with risk-appropriate cost-efficient user authentication The solution enables end users to have convenient anytime anywhere access to sensitive data from their smartphones tablets computers and virtually anyother device

Deployment is simplified too through the platformrsquos pre-integration with major cloud apps VPN systems application servers banking applications and other third-party systems

As banks enhance online and mobile channels in response to competition and user demand they must successfully address risks associated with authenticating their customers and employees and integrate their front and back-end systems with acentral ActivIDreg Authentication Server

The HID Global approach

14

Transaction signing

With HID Approve customers can validate transactions in real time eliminating discrepancies from paper signatures in batches at the end of a period For each transaction the customer receives a notification immediately and approves it in real time Orders are processed upon identity verification and validation of the user requesting the transaction

Banking anytime anywhere

Millennials impose new requirements on wealth managers and their demand for technological advances and online platforms are shaping the financial services industry Womenrsquos wealth and income are also growing faster than ever Recent research suggests that women may soon control the majority of UShousehold wealth12

Mutual authentication over the phone

Dedicated relationship managers must ensure that they keep a close relationship with their customers To manage their wealth clients require secure ways (ie instant mutual authentication) of validating transactions over the phone Relationship managers must verify the identity of these customers to ensure the safety of the data and to protect against fraud

Use cases

15

GET IN TOUCHIf you would like to find out how you can provide your customers with a more secure and convenient banking experience you can now request a free consultation

wwwhidglobalcom

Request consultationActivIDreg Trusted

Transactions

ActivIDreg

Threat Detection Service

ActivIDreg

Authentication Platform

Additional resources

INFOGRAPHIC

Top 5 Considerations What to Look for in a Mobile Banking Security Solution

INFOGRAPHIC

FAQ Why Banks Need a Dedicated Mobile Banking Security System

16

Market Trends

4

Trend 1

Hyper-connected world on the moveWith the rapid rise of smartphones and tablets tech-savvy HNWIs are expecting a richer and more dynamic user experience via mobile applications The demand for mobile app services is so acute that 80 of HNWIs under 40 years of age indicated they would leave their wealth management firm if it fails to provide an integrated channel experience1

Although more than 80 of wealth managers recognize the positive impact digital tools can have on client interactions as well as their overall ability to

do their job7 many face the task of differentiating their services from competitors To remain competitive organizations should develop strategies that take advantage of new technology and innovation Globally 486 of HNWIs say they would consider using automated advisors for a portion of their portfolio and close to 50 nd lower costs and higher convenience as the primary reasons1

642of affluent individuals expect future wealth management relationships to be digital1

DriversThe use of technology by millennials has led to investment in digital and self-service capabilities As tech-savvy customers expect transparency flexibility and fixed fee models organizations should diversify their portfolio through value-added services to drive value and customer retention

Womenrsquos wealth and income are set to change the industry as they take an active role in managing their wealth presenting new values needs goalsand challenges

654of wealthy people would leave wealth management firms if integrated channel experience is not provided1

5

Competitive pressure in the financial services industry is only going to increase in importance in particular with the growing interest of HNWI on innovative services offered by FinTechs including automated advice platforms and peer-to-peer open investment communities Global HNWI demand for automated advisory services has increased from 486 in 2015 to 669 in 2016 while 475 of HNWIs use online peer-to-peer platforms at least weekly to find out about investment ideas7

Technology-driven start-ups and FinTech companies are increasingly eroding pricing power while raising the bar for better and faster wealth management services Nevertheless a survey by PwC Global8 showed that most wealth managers (75) view the impact of FinTech as

the need to adapt to changing customer needs while 50 think new entrants can enhance interactions and trusted relationships

High demand for customized and personalized services through online and mobile channels from customers coupled with the rapid growth of the family office industry are factors that will help push automated advice into mainstream adoption in the future

DriversOrganizations are challenged to take a proactive approach to developing innovative offerings Adoption of a lsquoutility modelrsquo in wealth management will help to improve efficiency and reduce operational costs and risks This involves sharing of costs with other banks on joint platforms for various front-office functions or back-of-office related processes such as corporate actions statements reporting and account aggregation1

Expected global growth of hybrid robo-advisors by 20209

42Percentage of wealthmanagers outsourcingnon-core functions9

Trend 2

Market landscape$37trillion

6

According to Ernst amp Young (2016) clients consider digital to be a primary channel for advice not just for service3 Subsequently there has been a rise in focus on cyber security by wealth management firms1

Firms are facing challenges of protecting their systems against data theft while safeguarding security and privacy of client information as well as providing their clients with secured access for interacting and transacting purposes Data thefts at firms result in tax investigations fines and loss of brand reputation Thus security costs could end up representing about 30 of private banksrsquo technology budgets10

The Securities and Exchange Commission (SEC) andFinancial Industry RegulatoryAuthority (FINRA) require organizations to have adequate procedures and systems that keep cyber threats in check

DriversThe proliferation of digital channels among HNWIs requires heightened security to prevent leakage of sensitive customer information Organizations need to protect their brand reputation and the trust of their clients by offering innovative services in real-time through encrypted channels

Trend 3

Increasing risk of fraud across channels

Percentage of HNWIs who rate theft as theirtop concern10

Security cost within private banksrsquo technology budget10

Average cost of a security breach11

$38million

30

51

7

Considering the increasing regulations and challenges facing the industry global wealth management players are reassessing their international operations In this highly regulated market firms are experiencing a rise in their compliance costs and are exploring options to manage these costs

The MiFID (Markets in Financial Instruments Directive) framework creates market structures by improving investorsrsquo protection and increasing transparency New changes to the MiFID framework have impacts the wealth management industry in 2017 Thus banks should consider reviewing their business and pricing models5

Over the last decade there have been continuedadvances in policies to increase international co-operation in tax matters and tax transparency16 Evolving international regulations like FATCA (Foreign Account Tax Compliance Act) and CRS (Common Reporting Standards) are challenging organizations to implement new procedures to remain compliant

Trend 4

Regulatory changes and complexity

DriversCompliance with a high volume and breadth of regulations requires a significant amount of investment in technology and operations11 Firms should look to increase the notion that financial advisors are making recommendations that are in the best interest of their clients

Increasing regulations

Rising compliance costs

8

Rest of the world Many of the emerging markets such as Africa and the Middle East are currently under extreme civil unrest making the application of national and regional regulation extremely challenging

Asia Pacific Initiatives in place to reduce bureaucracy speed up the process of bringing new products to market and stimulate market activity within the jurisdiction by attracting more participants

Europe UCITS AIFMD EMIR extraterritorial Dodd-Frank FATCA Basel III plus MiFD II PRIPs MAD II AMLD and especially FTT will contribute to a complex period of regulatory reform over the next three to five years

Latin America Improved regulatory regimes with the intention to come into effect with the G20 recommendations

North America Dodd-Frank Act Basel III AIFMD FTT and IFRS Convergence likely to dominate

Trend 4

Regulatory changes and complexity

9

Challenges Competitive pressure and increasing client sophistication are driving the need for firms to preserve profits and build trust with customers both are key to greater digital maturity which is essential for growth By implementing a successful digital strategy organizations can simplify processes and thus generate savings which will ultimately reflect on their top-line revenue and bottom-line gains3

Lack of in-house technology skills

Legacy of IT

Rebuilding trust in financial institutions

Increased demand to deliver services online

CHALLENGES

Mobility

Competition

Increased fraud

Regulations amp compliance

TRENDS

10

OpportunitiesChanging consumer behavior creates new expectations for stronger interaction through digital channels Customers require flexible services to access account information and portfolio performance or to directly seek advice or interact with anadvisor Firms must provide a compelling user experience while simultaneously reducing costs and improving front-to-back-office efficiency1

Preserving reputation and protecting the brand

Developing innovative products while delivering a compelling experience

Decreasing the cost of fines while improving operational efficiency

Engaging with emerging consumers of financewealth management services

OPPORTUNITIES

Mobility

Competition

Increased fraud

Regulations amp compliance

TRENDS

11

Digital Transformation with HID Global

12

Application security

Transactional signing and pattern-based intelligence

Browser protection

Device authentication

User authentication (MFA)

bull Something you know (passwords)

bull Something you have (token)

bull Something you are (biometrics behaviour metrics)

Adaptive multi-layered authenticationWith HID Global financial institutions can inspire confidence and increase adoption of online and mobile channels by offering their customers a worry-free secure and convenient experience which in turn contributes to their bottom line

Our solutions comply with the key banking authentication regulations around the world offering an unparalleled user experience ideal for banks and financial organizations looking to enhance their digital offering while increasing security for the customer

Our approach enables multi-factor authentication for all leading mobile phones and tablets and has a pluggable platform that is extensible for future authentication methods In a landscape of evolving threats banks should embrace regulatory changes and complexities to contain risk and protect their customers

HID Global Adaptive Security approach

13

Secure omni-channel banking

Methods

One-timepassword

Static credentials

Pushnotification

Out of band

Behaviouralanalysis

Certificates

Threat detection

Biometry

Branch ATM Landline eBanking mBanking eCommerce POS

HID Globalrsquos ActivIDreg Authentication Server and Threat Detection Service provide corporate financial and government organizations with risk-appropriate cost-efficient user authentication The solution enables end users to have convenient anytime anywhere access to sensitive data from their smartphones tablets computers and virtually anyother device

Deployment is simplified too through the platformrsquos pre-integration with major cloud apps VPN systems application servers banking applications and other third-party systems

As banks enhance online and mobile channels in response to competition and user demand they must successfully address risks associated with authenticating their customers and employees and integrate their front and back-end systems with acentral ActivIDreg Authentication Server

The HID Global approach

14

Transaction signing

With HID Approve customers can validate transactions in real time eliminating discrepancies from paper signatures in batches at the end of a period For each transaction the customer receives a notification immediately and approves it in real time Orders are processed upon identity verification and validation of the user requesting the transaction

Banking anytime anywhere

Millennials impose new requirements on wealth managers and their demand for technological advances and online platforms are shaping the financial services industry Womenrsquos wealth and income are also growing faster than ever Recent research suggests that women may soon control the majority of UShousehold wealth12

Mutual authentication over the phone

Dedicated relationship managers must ensure that they keep a close relationship with their customers To manage their wealth clients require secure ways (ie instant mutual authentication) of validating transactions over the phone Relationship managers must verify the identity of these customers to ensure the safety of the data and to protect against fraud

Use cases

15

GET IN TOUCHIf you would like to find out how you can provide your customers with a more secure and convenient banking experience you can now request a free consultation

wwwhidglobalcom

Request consultationActivIDreg Trusted

Transactions

ActivIDreg

Threat Detection Service

ActivIDreg

Authentication Platform

Additional resources

INFOGRAPHIC

Top 5 Considerations What to Look for in a Mobile Banking Security Solution

INFOGRAPHIC

FAQ Why Banks Need a Dedicated Mobile Banking Security System

16

Trend 1

Hyper-connected world on the moveWith the rapid rise of smartphones and tablets tech-savvy HNWIs are expecting a richer and more dynamic user experience via mobile applications The demand for mobile app services is so acute that 80 of HNWIs under 40 years of age indicated they would leave their wealth management firm if it fails to provide an integrated channel experience1

Although more than 80 of wealth managers recognize the positive impact digital tools can have on client interactions as well as their overall ability to

do their job7 many face the task of differentiating their services from competitors To remain competitive organizations should develop strategies that take advantage of new technology and innovation Globally 486 of HNWIs say they would consider using automated advisors for a portion of their portfolio and close to 50 nd lower costs and higher convenience as the primary reasons1

642of affluent individuals expect future wealth management relationships to be digital1

DriversThe use of technology by millennials has led to investment in digital and self-service capabilities As tech-savvy customers expect transparency flexibility and fixed fee models organizations should diversify their portfolio through value-added services to drive value and customer retention

Womenrsquos wealth and income are set to change the industry as they take an active role in managing their wealth presenting new values needs goalsand challenges

654of wealthy people would leave wealth management firms if integrated channel experience is not provided1

5

Competitive pressure in the financial services industry is only going to increase in importance in particular with the growing interest of HNWI on innovative services offered by FinTechs including automated advice platforms and peer-to-peer open investment communities Global HNWI demand for automated advisory services has increased from 486 in 2015 to 669 in 2016 while 475 of HNWIs use online peer-to-peer platforms at least weekly to find out about investment ideas7

Technology-driven start-ups and FinTech companies are increasingly eroding pricing power while raising the bar for better and faster wealth management services Nevertheless a survey by PwC Global8 showed that most wealth managers (75) view the impact of FinTech as

the need to adapt to changing customer needs while 50 think new entrants can enhance interactions and trusted relationships

High demand for customized and personalized services through online and mobile channels from customers coupled with the rapid growth of the family office industry are factors that will help push automated advice into mainstream adoption in the future

DriversOrganizations are challenged to take a proactive approach to developing innovative offerings Adoption of a lsquoutility modelrsquo in wealth management will help to improve efficiency and reduce operational costs and risks This involves sharing of costs with other banks on joint platforms for various front-office functions or back-of-office related processes such as corporate actions statements reporting and account aggregation1

Expected global growth of hybrid robo-advisors by 20209

42Percentage of wealthmanagers outsourcingnon-core functions9

Trend 2

Market landscape$37trillion

6

According to Ernst amp Young (2016) clients consider digital to be a primary channel for advice not just for service3 Subsequently there has been a rise in focus on cyber security by wealth management firms1

Firms are facing challenges of protecting their systems against data theft while safeguarding security and privacy of client information as well as providing their clients with secured access for interacting and transacting purposes Data thefts at firms result in tax investigations fines and loss of brand reputation Thus security costs could end up representing about 30 of private banksrsquo technology budgets10

The Securities and Exchange Commission (SEC) andFinancial Industry RegulatoryAuthority (FINRA) require organizations to have adequate procedures and systems that keep cyber threats in check

DriversThe proliferation of digital channels among HNWIs requires heightened security to prevent leakage of sensitive customer information Organizations need to protect their brand reputation and the trust of their clients by offering innovative services in real-time through encrypted channels

Trend 3

Increasing risk of fraud across channels

Percentage of HNWIs who rate theft as theirtop concern10

Security cost within private banksrsquo technology budget10

Average cost of a security breach11

$38million

30

51

7

Considering the increasing regulations and challenges facing the industry global wealth management players are reassessing their international operations In this highly regulated market firms are experiencing a rise in their compliance costs and are exploring options to manage these costs

The MiFID (Markets in Financial Instruments Directive) framework creates market structures by improving investorsrsquo protection and increasing transparency New changes to the MiFID framework have impacts the wealth management industry in 2017 Thus banks should consider reviewing their business and pricing models5

Over the last decade there have been continuedadvances in policies to increase international co-operation in tax matters and tax transparency16 Evolving international regulations like FATCA (Foreign Account Tax Compliance Act) and CRS (Common Reporting Standards) are challenging organizations to implement new procedures to remain compliant

Trend 4

Regulatory changes and complexity

DriversCompliance with a high volume and breadth of regulations requires a significant amount of investment in technology and operations11 Firms should look to increase the notion that financial advisors are making recommendations that are in the best interest of their clients

Increasing regulations

Rising compliance costs

8

Rest of the world Many of the emerging markets such as Africa and the Middle East are currently under extreme civil unrest making the application of national and regional regulation extremely challenging

Asia Pacific Initiatives in place to reduce bureaucracy speed up the process of bringing new products to market and stimulate market activity within the jurisdiction by attracting more participants

Europe UCITS AIFMD EMIR extraterritorial Dodd-Frank FATCA Basel III plus MiFD II PRIPs MAD II AMLD and especially FTT will contribute to a complex period of regulatory reform over the next three to five years

Latin America Improved regulatory regimes with the intention to come into effect with the G20 recommendations

North America Dodd-Frank Act Basel III AIFMD FTT and IFRS Convergence likely to dominate

Trend 4

Regulatory changes and complexity

9

Challenges Competitive pressure and increasing client sophistication are driving the need for firms to preserve profits and build trust with customers both are key to greater digital maturity which is essential for growth By implementing a successful digital strategy organizations can simplify processes and thus generate savings which will ultimately reflect on their top-line revenue and bottom-line gains3

Lack of in-house technology skills

Legacy of IT

Rebuilding trust in financial institutions

Increased demand to deliver services online

CHALLENGES

Mobility

Competition

Increased fraud

Regulations amp compliance

TRENDS

10

OpportunitiesChanging consumer behavior creates new expectations for stronger interaction through digital channels Customers require flexible services to access account information and portfolio performance or to directly seek advice or interact with anadvisor Firms must provide a compelling user experience while simultaneously reducing costs and improving front-to-back-office efficiency1

Preserving reputation and protecting the brand

Developing innovative products while delivering a compelling experience

Decreasing the cost of fines while improving operational efficiency

Engaging with emerging consumers of financewealth management services

OPPORTUNITIES

Mobility

Competition

Increased fraud

Regulations amp compliance

TRENDS

11

Digital Transformation with HID Global

12

Application security

Transactional signing and pattern-based intelligence

Browser protection

Device authentication

User authentication (MFA)

bull Something you know (passwords)

bull Something you have (token)

bull Something you are (biometrics behaviour metrics)

Adaptive multi-layered authenticationWith HID Global financial institutions can inspire confidence and increase adoption of online and mobile channels by offering their customers a worry-free secure and convenient experience which in turn contributes to their bottom line

Our solutions comply with the key banking authentication regulations around the world offering an unparalleled user experience ideal for banks and financial organizations looking to enhance their digital offering while increasing security for the customer

Our approach enables multi-factor authentication for all leading mobile phones and tablets and has a pluggable platform that is extensible for future authentication methods In a landscape of evolving threats banks should embrace regulatory changes and complexities to contain risk and protect their customers

HID Global Adaptive Security approach

13

Secure omni-channel banking

Methods

One-timepassword

Static credentials

Pushnotification

Out of band

Behaviouralanalysis

Certificates

Threat detection

Biometry

Branch ATM Landline eBanking mBanking eCommerce POS

HID Globalrsquos ActivIDreg Authentication Server and Threat Detection Service provide corporate financial and government organizations with risk-appropriate cost-efficient user authentication The solution enables end users to have convenient anytime anywhere access to sensitive data from their smartphones tablets computers and virtually anyother device

Deployment is simplified too through the platformrsquos pre-integration with major cloud apps VPN systems application servers banking applications and other third-party systems

As banks enhance online and mobile channels in response to competition and user demand they must successfully address risks associated with authenticating their customers and employees and integrate their front and back-end systems with acentral ActivIDreg Authentication Server

The HID Global approach

14

Transaction signing

With HID Approve customers can validate transactions in real time eliminating discrepancies from paper signatures in batches at the end of a period For each transaction the customer receives a notification immediately and approves it in real time Orders are processed upon identity verification and validation of the user requesting the transaction

Banking anytime anywhere

Millennials impose new requirements on wealth managers and their demand for technological advances and online platforms are shaping the financial services industry Womenrsquos wealth and income are also growing faster than ever Recent research suggests that women may soon control the majority of UShousehold wealth12

Mutual authentication over the phone

Dedicated relationship managers must ensure that they keep a close relationship with their customers To manage their wealth clients require secure ways (ie instant mutual authentication) of validating transactions over the phone Relationship managers must verify the identity of these customers to ensure the safety of the data and to protect against fraud

Use cases

15

GET IN TOUCHIf you would like to find out how you can provide your customers with a more secure and convenient banking experience you can now request a free consultation

wwwhidglobalcom

Request consultationActivIDreg Trusted

Transactions

ActivIDreg

Threat Detection Service

ActivIDreg

Authentication Platform

Additional resources

INFOGRAPHIC

Top 5 Considerations What to Look for in a Mobile Banking Security Solution

INFOGRAPHIC

FAQ Why Banks Need a Dedicated Mobile Banking Security System

16

Competitive pressure in the financial services industry is only going to increase in importance in particular with the growing interest of HNWI on innovative services offered by FinTechs including automated advice platforms and peer-to-peer open investment communities Global HNWI demand for automated advisory services has increased from 486 in 2015 to 669 in 2016 while 475 of HNWIs use online peer-to-peer platforms at least weekly to find out about investment ideas7

Technology-driven start-ups and FinTech companies are increasingly eroding pricing power while raising the bar for better and faster wealth management services Nevertheless a survey by PwC Global8 showed that most wealth managers (75) view the impact of FinTech as

the need to adapt to changing customer needs while 50 think new entrants can enhance interactions and trusted relationships

High demand for customized and personalized services through online and mobile channels from customers coupled with the rapid growth of the family office industry are factors that will help push automated advice into mainstream adoption in the future

DriversOrganizations are challenged to take a proactive approach to developing innovative offerings Adoption of a lsquoutility modelrsquo in wealth management will help to improve efficiency and reduce operational costs and risks This involves sharing of costs with other banks on joint platforms for various front-office functions or back-of-office related processes such as corporate actions statements reporting and account aggregation1

Expected global growth of hybrid robo-advisors by 20209

42Percentage of wealthmanagers outsourcingnon-core functions9

Trend 2

Market landscape$37trillion

6

According to Ernst amp Young (2016) clients consider digital to be a primary channel for advice not just for service3 Subsequently there has been a rise in focus on cyber security by wealth management firms1

Firms are facing challenges of protecting their systems against data theft while safeguarding security and privacy of client information as well as providing their clients with secured access for interacting and transacting purposes Data thefts at firms result in tax investigations fines and loss of brand reputation Thus security costs could end up representing about 30 of private banksrsquo technology budgets10

The Securities and Exchange Commission (SEC) andFinancial Industry RegulatoryAuthority (FINRA) require organizations to have adequate procedures and systems that keep cyber threats in check

DriversThe proliferation of digital channels among HNWIs requires heightened security to prevent leakage of sensitive customer information Organizations need to protect their brand reputation and the trust of their clients by offering innovative services in real-time through encrypted channels

Trend 3

Increasing risk of fraud across channels

Percentage of HNWIs who rate theft as theirtop concern10

Security cost within private banksrsquo technology budget10

Average cost of a security breach11

$38million

30

51

7

Considering the increasing regulations and challenges facing the industry global wealth management players are reassessing their international operations In this highly regulated market firms are experiencing a rise in their compliance costs and are exploring options to manage these costs

The MiFID (Markets in Financial Instruments Directive) framework creates market structures by improving investorsrsquo protection and increasing transparency New changes to the MiFID framework have impacts the wealth management industry in 2017 Thus banks should consider reviewing their business and pricing models5

Over the last decade there have been continuedadvances in policies to increase international co-operation in tax matters and tax transparency16 Evolving international regulations like FATCA (Foreign Account Tax Compliance Act) and CRS (Common Reporting Standards) are challenging organizations to implement new procedures to remain compliant

Trend 4

Regulatory changes and complexity

DriversCompliance with a high volume and breadth of regulations requires a significant amount of investment in technology and operations11 Firms should look to increase the notion that financial advisors are making recommendations that are in the best interest of their clients

Increasing regulations

Rising compliance costs

8

Rest of the world Many of the emerging markets such as Africa and the Middle East are currently under extreme civil unrest making the application of national and regional regulation extremely challenging

Asia Pacific Initiatives in place to reduce bureaucracy speed up the process of bringing new products to market and stimulate market activity within the jurisdiction by attracting more participants

Europe UCITS AIFMD EMIR extraterritorial Dodd-Frank FATCA Basel III plus MiFD II PRIPs MAD II AMLD and especially FTT will contribute to a complex period of regulatory reform over the next three to five years

Latin America Improved regulatory regimes with the intention to come into effect with the G20 recommendations

North America Dodd-Frank Act Basel III AIFMD FTT and IFRS Convergence likely to dominate

Trend 4

Regulatory changes and complexity

9

Challenges Competitive pressure and increasing client sophistication are driving the need for firms to preserve profits and build trust with customers both are key to greater digital maturity which is essential for growth By implementing a successful digital strategy organizations can simplify processes and thus generate savings which will ultimately reflect on their top-line revenue and bottom-line gains3

Lack of in-house technology skills

Legacy of IT

Rebuilding trust in financial institutions

Increased demand to deliver services online

CHALLENGES

Mobility

Competition

Increased fraud

Regulations amp compliance

TRENDS

10

OpportunitiesChanging consumer behavior creates new expectations for stronger interaction through digital channels Customers require flexible services to access account information and portfolio performance or to directly seek advice or interact with anadvisor Firms must provide a compelling user experience while simultaneously reducing costs and improving front-to-back-office efficiency1

Preserving reputation and protecting the brand

Developing innovative products while delivering a compelling experience

Decreasing the cost of fines while improving operational efficiency

Engaging with emerging consumers of financewealth management services

OPPORTUNITIES

Mobility

Competition

Increased fraud

Regulations amp compliance

TRENDS

11

Digital Transformation with HID Global

12

Application security

Transactional signing and pattern-based intelligence

Browser protection

Device authentication

User authentication (MFA)

bull Something you know (passwords)

bull Something you have (token)

bull Something you are (biometrics behaviour metrics)

Adaptive multi-layered authenticationWith HID Global financial institutions can inspire confidence and increase adoption of online and mobile channels by offering their customers a worry-free secure and convenient experience which in turn contributes to their bottom line

Our solutions comply with the key banking authentication regulations around the world offering an unparalleled user experience ideal for banks and financial organizations looking to enhance their digital offering while increasing security for the customer

Our approach enables multi-factor authentication for all leading mobile phones and tablets and has a pluggable platform that is extensible for future authentication methods In a landscape of evolving threats banks should embrace regulatory changes and complexities to contain risk and protect their customers

HID Global Adaptive Security approach

13

Secure omni-channel banking

Methods

One-timepassword

Static credentials

Pushnotification

Out of band

Behaviouralanalysis

Certificates

Threat detection

Biometry

Branch ATM Landline eBanking mBanking eCommerce POS

HID Globalrsquos ActivIDreg Authentication Server and Threat Detection Service provide corporate financial and government organizations with risk-appropriate cost-efficient user authentication The solution enables end users to have convenient anytime anywhere access to sensitive data from their smartphones tablets computers and virtually anyother device

Deployment is simplified too through the platformrsquos pre-integration with major cloud apps VPN systems application servers banking applications and other third-party systems

As banks enhance online and mobile channels in response to competition and user demand they must successfully address risks associated with authenticating their customers and employees and integrate their front and back-end systems with acentral ActivIDreg Authentication Server

The HID Global approach

14

Transaction signing

With HID Approve customers can validate transactions in real time eliminating discrepancies from paper signatures in batches at the end of a period For each transaction the customer receives a notification immediately and approves it in real time Orders are processed upon identity verification and validation of the user requesting the transaction

Banking anytime anywhere

Millennials impose new requirements on wealth managers and their demand for technological advances and online platforms are shaping the financial services industry Womenrsquos wealth and income are also growing faster than ever Recent research suggests that women may soon control the majority of UShousehold wealth12

Mutual authentication over the phone

Dedicated relationship managers must ensure that they keep a close relationship with their customers To manage their wealth clients require secure ways (ie instant mutual authentication) of validating transactions over the phone Relationship managers must verify the identity of these customers to ensure the safety of the data and to protect against fraud

Use cases

15

GET IN TOUCHIf you would like to find out how you can provide your customers with a more secure and convenient banking experience you can now request a free consultation

wwwhidglobalcom

Request consultationActivIDreg Trusted

Transactions

ActivIDreg

Threat Detection Service

ActivIDreg

Authentication Platform

Additional resources

INFOGRAPHIC

Top 5 Considerations What to Look for in a Mobile Banking Security Solution

INFOGRAPHIC

FAQ Why Banks Need a Dedicated Mobile Banking Security System

16

According to Ernst amp Young (2016) clients consider digital to be a primary channel for advice not just for service3 Subsequently there has been a rise in focus on cyber security by wealth management firms1

Firms are facing challenges of protecting their systems against data theft while safeguarding security and privacy of client information as well as providing their clients with secured access for interacting and transacting purposes Data thefts at firms result in tax investigations fines and loss of brand reputation Thus security costs could end up representing about 30 of private banksrsquo technology budgets10

The Securities and Exchange Commission (SEC) andFinancial Industry RegulatoryAuthority (FINRA) require organizations to have adequate procedures and systems that keep cyber threats in check

DriversThe proliferation of digital channels among HNWIs requires heightened security to prevent leakage of sensitive customer information Organizations need to protect their brand reputation and the trust of their clients by offering innovative services in real-time through encrypted channels

Trend 3

Increasing risk of fraud across channels

Percentage of HNWIs who rate theft as theirtop concern10

Security cost within private banksrsquo technology budget10

Average cost of a security breach11

$38million

30

51

7

Considering the increasing regulations and challenges facing the industry global wealth management players are reassessing their international operations In this highly regulated market firms are experiencing a rise in their compliance costs and are exploring options to manage these costs

The MiFID (Markets in Financial Instruments Directive) framework creates market structures by improving investorsrsquo protection and increasing transparency New changes to the MiFID framework have impacts the wealth management industry in 2017 Thus banks should consider reviewing their business and pricing models5

Over the last decade there have been continuedadvances in policies to increase international co-operation in tax matters and tax transparency16 Evolving international regulations like FATCA (Foreign Account Tax Compliance Act) and CRS (Common Reporting Standards) are challenging organizations to implement new procedures to remain compliant

Trend 4

Regulatory changes and complexity

DriversCompliance with a high volume and breadth of regulations requires a significant amount of investment in technology and operations11 Firms should look to increase the notion that financial advisors are making recommendations that are in the best interest of their clients

Increasing regulations

Rising compliance costs

8

Rest of the world Many of the emerging markets such as Africa and the Middle East are currently under extreme civil unrest making the application of national and regional regulation extremely challenging

Asia Pacific Initiatives in place to reduce bureaucracy speed up the process of bringing new products to market and stimulate market activity within the jurisdiction by attracting more participants

Europe UCITS AIFMD EMIR extraterritorial Dodd-Frank FATCA Basel III plus MiFD II PRIPs MAD II AMLD and especially FTT will contribute to a complex period of regulatory reform over the next three to five years

Latin America Improved regulatory regimes with the intention to come into effect with the G20 recommendations

North America Dodd-Frank Act Basel III AIFMD FTT and IFRS Convergence likely to dominate

Trend 4

Regulatory changes and complexity

9

Challenges Competitive pressure and increasing client sophistication are driving the need for firms to preserve profits and build trust with customers both are key to greater digital maturity which is essential for growth By implementing a successful digital strategy organizations can simplify processes and thus generate savings which will ultimately reflect on their top-line revenue and bottom-line gains3

Lack of in-house technology skills

Legacy of IT

Rebuilding trust in financial institutions

Increased demand to deliver services online

CHALLENGES

Mobility

Competition

Increased fraud

Regulations amp compliance

TRENDS

10

OpportunitiesChanging consumer behavior creates new expectations for stronger interaction through digital channels Customers require flexible services to access account information and portfolio performance or to directly seek advice or interact with anadvisor Firms must provide a compelling user experience while simultaneously reducing costs and improving front-to-back-office efficiency1

Preserving reputation and protecting the brand

Developing innovative products while delivering a compelling experience

Decreasing the cost of fines while improving operational efficiency

Engaging with emerging consumers of financewealth management services

OPPORTUNITIES

Mobility

Competition

Increased fraud

Regulations amp compliance

TRENDS

11

Digital Transformation with HID Global

12

Application security

Transactional signing and pattern-based intelligence

Browser protection

Device authentication

User authentication (MFA)

bull Something you know (passwords)

bull Something you have (token)

bull Something you are (biometrics behaviour metrics)

Adaptive multi-layered authenticationWith HID Global financial institutions can inspire confidence and increase adoption of online and mobile channels by offering their customers a worry-free secure and convenient experience which in turn contributes to their bottom line

Our solutions comply with the key banking authentication regulations around the world offering an unparalleled user experience ideal for banks and financial organizations looking to enhance their digital offering while increasing security for the customer

Our approach enables multi-factor authentication for all leading mobile phones and tablets and has a pluggable platform that is extensible for future authentication methods In a landscape of evolving threats banks should embrace regulatory changes and complexities to contain risk and protect their customers

HID Global Adaptive Security approach

13

Secure omni-channel banking

Methods

One-timepassword

Static credentials

Pushnotification

Out of band

Behaviouralanalysis

Certificates

Threat detection

Biometry

Branch ATM Landline eBanking mBanking eCommerce POS

HID Globalrsquos ActivIDreg Authentication Server and Threat Detection Service provide corporate financial and government organizations with risk-appropriate cost-efficient user authentication The solution enables end users to have convenient anytime anywhere access to sensitive data from their smartphones tablets computers and virtually anyother device

Deployment is simplified too through the platformrsquos pre-integration with major cloud apps VPN systems application servers banking applications and other third-party systems

As banks enhance online and mobile channels in response to competition and user demand they must successfully address risks associated with authenticating their customers and employees and integrate their front and back-end systems with acentral ActivIDreg Authentication Server

The HID Global approach

14

Transaction signing

With HID Approve customers can validate transactions in real time eliminating discrepancies from paper signatures in batches at the end of a period For each transaction the customer receives a notification immediately and approves it in real time Orders are processed upon identity verification and validation of the user requesting the transaction

Banking anytime anywhere

Millennials impose new requirements on wealth managers and their demand for technological advances and online platforms are shaping the financial services industry Womenrsquos wealth and income are also growing faster than ever Recent research suggests that women may soon control the majority of UShousehold wealth12

Mutual authentication over the phone

Dedicated relationship managers must ensure that they keep a close relationship with their customers To manage their wealth clients require secure ways (ie instant mutual authentication) of validating transactions over the phone Relationship managers must verify the identity of these customers to ensure the safety of the data and to protect against fraud

Use cases

15

GET IN TOUCHIf you would like to find out how you can provide your customers with a more secure and convenient banking experience you can now request a free consultation

wwwhidglobalcom

Request consultationActivIDreg Trusted

Transactions

ActivIDreg

Threat Detection Service

ActivIDreg

Authentication Platform

Additional resources

INFOGRAPHIC

Top 5 Considerations What to Look for in a Mobile Banking Security Solution

INFOGRAPHIC

FAQ Why Banks Need a Dedicated Mobile Banking Security System

16

Considering the increasing regulations and challenges facing the industry global wealth management players are reassessing their international operations In this highly regulated market firms are experiencing a rise in their compliance costs and are exploring options to manage these costs

The MiFID (Markets in Financial Instruments Directive) framework creates market structures by improving investorsrsquo protection and increasing transparency New changes to the MiFID framework have impacts the wealth management industry in 2017 Thus banks should consider reviewing their business and pricing models5

Over the last decade there have been continuedadvances in policies to increase international co-operation in tax matters and tax transparency16 Evolving international regulations like FATCA (Foreign Account Tax Compliance Act) and CRS (Common Reporting Standards) are challenging organizations to implement new procedures to remain compliant

Trend 4

Regulatory changes and complexity

DriversCompliance with a high volume and breadth of regulations requires a significant amount of investment in technology and operations11 Firms should look to increase the notion that financial advisors are making recommendations that are in the best interest of their clients

Increasing regulations

Rising compliance costs

8

Rest of the world Many of the emerging markets such as Africa and the Middle East are currently under extreme civil unrest making the application of national and regional regulation extremely challenging

Asia Pacific Initiatives in place to reduce bureaucracy speed up the process of bringing new products to market and stimulate market activity within the jurisdiction by attracting more participants

Europe UCITS AIFMD EMIR extraterritorial Dodd-Frank FATCA Basel III plus MiFD II PRIPs MAD II AMLD and especially FTT will contribute to a complex period of regulatory reform over the next three to five years

Latin America Improved regulatory regimes with the intention to come into effect with the G20 recommendations

North America Dodd-Frank Act Basel III AIFMD FTT and IFRS Convergence likely to dominate

Trend 4

Regulatory changes and complexity

9

Challenges Competitive pressure and increasing client sophistication are driving the need for firms to preserve profits and build trust with customers both are key to greater digital maturity which is essential for growth By implementing a successful digital strategy organizations can simplify processes and thus generate savings which will ultimately reflect on their top-line revenue and bottom-line gains3

Lack of in-house technology skills

Legacy of IT

Rebuilding trust in financial institutions

Increased demand to deliver services online

CHALLENGES

Mobility

Competition

Increased fraud

Regulations amp compliance

TRENDS

10

OpportunitiesChanging consumer behavior creates new expectations for stronger interaction through digital channels Customers require flexible services to access account information and portfolio performance or to directly seek advice or interact with anadvisor Firms must provide a compelling user experience while simultaneously reducing costs and improving front-to-back-office efficiency1

Preserving reputation and protecting the brand

Developing innovative products while delivering a compelling experience

Decreasing the cost of fines while improving operational efficiency

Engaging with emerging consumers of financewealth management services

OPPORTUNITIES

Mobility

Competition

Increased fraud

Regulations amp compliance

TRENDS

11

Digital Transformation with HID Global

12

Application security

Transactional signing and pattern-based intelligence

Browser protection

Device authentication

User authentication (MFA)

bull Something you know (passwords)

bull Something you have (token)

bull Something you are (biometrics behaviour metrics)

Adaptive multi-layered authenticationWith HID Global financial institutions can inspire confidence and increase adoption of online and mobile channels by offering their customers a worry-free secure and convenient experience which in turn contributes to their bottom line

Our solutions comply with the key banking authentication regulations around the world offering an unparalleled user experience ideal for banks and financial organizations looking to enhance their digital offering while increasing security for the customer

Our approach enables multi-factor authentication for all leading mobile phones and tablets and has a pluggable platform that is extensible for future authentication methods In a landscape of evolving threats banks should embrace regulatory changes and complexities to contain risk and protect their customers

HID Global Adaptive Security approach

13

Secure omni-channel banking

Methods

One-timepassword

Static credentials

Pushnotification

Out of band

Behaviouralanalysis

Certificates

Threat detection

Biometry

Branch ATM Landline eBanking mBanking eCommerce POS

HID Globalrsquos ActivIDreg Authentication Server and Threat Detection Service provide corporate financial and government organizations with risk-appropriate cost-efficient user authentication The solution enables end users to have convenient anytime anywhere access to sensitive data from their smartphones tablets computers and virtually anyother device

Deployment is simplified too through the platformrsquos pre-integration with major cloud apps VPN systems application servers banking applications and other third-party systems

As banks enhance online and mobile channels in response to competition and user demand they must successfully address risks associated with authenticating their customers and employees and integrate their front and back-end systems with acentral ActivIDreg Authentication Server

The HID Global approach

14

Transaction signing

With HID Approve customers can validate transactions in real time eliminating discrepancies from paper signatures in batches at the end of a period For each transaction the customer receives a notification immediately and approves it in real time Orders are processed upon identity verification and validation of the user requesting the transaction

Banking anytime anywhere

Millennials impose new requirements on wealth managers and their demand for technological advances and online platforms are shaping the financial services industry Womenrsquos wealth and income are also growing faster than ever Recent research suggests that women may soon control the majority of UShousehold wealth12

Mutual authentication over the phone

Dedicated relationship managers must ensure that they keep a close relationship with their customers To manage their wealth clients require secure ways (ie instant mutual authentication) of validating transactions over the phone Relationship managers must verify the identity of these customers to ensure the safety of the data and to protect against fraud

Use cases

15

GET IN TOUCHIf you would like to find out how you can provide your customers with a more secure and convenient banking experience you can now request a free consultation

wwwhidglobalcom

Request consultationActivIDreg Trusted

Transactions

ActivIDreg

Threat Detection Service

ActivIDreg

Authentication Platform

Additional resources

INFOGRAPHIC

Top 5 Considerations What to Look for in a Mobile Banking Security Solution

INFOGRAPHIC

FAQ Why Banks Need a Dedicated Mobile Banking Security System

16

Rest of the world Many of the emerging markets such as Africa and the Middle East are currently under extreme civil unrest making the application of national and regional regulation extremely challenging

Asia Pacific Initiatives in place to reduce bureaucracy speed up the process of bringing new products to market and stimulate market activity within the jurisdiction by attracting more participants

Europe UCITS AIFMD EMIR extraterritorial Dodd-Frank FATCA Basel III plus MiFD II PRIPs MAD II AMLD and especially FTT will contribute to a complex period of regulatory reform over the next three to five years

Latin America Improved regulatory regimes with the intention to come into effect with the G20 recommendations

North America Dodd-Frank Act Basel III AIFMD FTT and IFRS Convergence likely to dominate

Trend 4

Regulatory changes and complexity

9

Challenges Competitive pressure and increasing client sophistication are driving the need for firms to preserve profits and build trust with customers both are key to greater digital maturity which is essential for growth By implementing a successful digital strategy organizations can simplify processes and thus generate savings which will ultimately reflect on their top-line revenue and bottom-line gains3

Lack of in-house technology skills

Legacy of IT

Rebuilding trust in financial institutions

Increased demand to deliver services online

CHALLENGES

Mobility

Competition

Increased fraud

Regulations amp compliance

TRENDS

10

OpportunitiesChanging consumer behavior creates new expectations for stronger interaction through digital channels Customers require flexible services to access account information and portfolio performance or to directly seek advice or interact with anadvisor Firms must provide a compelling user experience while simultaneously reducing costs and improving front-to-back-office efficiency1

Preserving reputation and protecting the brand

Developing innovative products while delivering a compelling experience

Decreasing the cost of fines while improving operational efficiency

Engaging with emerging consumers of financewealth management services

OPPORTUNITIES

Mobility

Competition

Increased fraud

Regulations amp compliance

TRENDS

11

Digital Transformation with HID Global

12

Application security

Transactional signing and pattern-based intelligence

Browser protection

Device authentication

User authentication (MFA)

bull Something you know (passwords)

bull Something you have (token)

bull Something you are (biometrics behaviour metrics)

Adaptive multi-layered authenticationWith HID Global financial institutions can inspire confidence and increase adoption of online and mobile channels by offering their customers a worry-free secure and convenient experience which in turn contributes to their bottom line

Our solutions comply with the key banking authentication regulations around the world offering an unparalleled user experience ideal for banks and financial organizations looking to enhance their digital offering while increasing security for the customer

Our approach enables multi-factor authentication for all leading mobile phones and tablets and has a pluggable platform that is extensible for future authentication methods In a landscape of evolving threats banks should embrace regulatory changes and complexities to contain risk and protect their customers

HID Global Adaptive Security approach

13

Secure omni-channel banking

Methods

One-timepassword

Static credentials

Pushnotification

Out of band

Behaviouralanalysis

Certificates

Threat detection

Biometry

Branch ATM Landline eBanking mBanking eCommerce POS

HID Globalrsquos ActivIDreg Authentication Server and Threat Detection Service provide corporate financial and government organizations with risk-appropriate cost-efficient user authentication The solution enables end users to have convenient anytime anywhere access to sensitive data from their smartphones tablets computers and virtually anyother device

Deployment is simplified too through the platformrsquos pre-integration with major cloud apps VPN systems application servers banking applications and other third-party systems

As banks enhance online and mobile channels in response to competition and user demand they must successfully address risks associated with authenticating their customers and employees and integrate their front and back-end systems with acentral ActivIDreg Authentication Server

The HID Global approach

14

Transaction signing

With HID Approve customers can validate transactions in real time eliminating discrepancies from paper signatures in batches at the end of a period For each transaction the customer receives a notification immediately and approves it in real time Orders are processed upon identity verification and validation of the user requesting the transaction

Banking anytime anywhere

Millennials impose new requirements on wealth managers and their demand for technological advances and online platforms are shaping the financial services industry Womenrsquos wealth and income are also growing faster than ever Recent research suggests that women may soon control the majority of UShousehold wealth12

Mutual authentication over the phone

Dedicated relationship managers must ensure that they keep a close relationship with their customers To manage their wealth clients require secure ways (ie instant mutual authentication) of validating transactions over the phone Relationship managers must verify the identity of these customers to ensure the safety of the data and to protect against fraud

Use cases

15

GET IN TOUCHIf you would like to find out how you can provide your customers with a more secure and convenient banking experience you can now request a free consultation

wwwhidglobalcom

Request consultationActivIDreg Trusted

Transactions

ActivIDreg

Threat Detection Service

ActivIDreg

Authentication Platform

Additional resources

INFOGRAPHIC

Top 5 Considerations What to Look for in a Mobile Banking Security Solution

INFOGRAPHIC

FAQ Why Banks Need a Dedicated Mobile Banking Security System

16

Challenges Competitive pressure and increasing client sophistication are driving the need for firms to preserve profits and build trust with customers both are key to greater digital maturity which is essential for growth By implementing a successful digital strategy organizations can simplify processes and thus generate savings which will ultimately reflect on their top-line revenue and bottom-line gains3

Lack of in-house technology skills

Legacy of IT

Rebuilding trust in financial institutions

Increased demand to deliver services online

CHALLENGES

Mobility

Competition

Increased fraud

Regulations amp compliance

TRENDS

10

OpportunitiesChanging consumer behavior creates new expectations for stronger interaction through digital channels Customers require flexible services to access account information and portfolio performance or to directly seek advice or interact with anadvisor Firms must provide a compelling user experience while simultaneously reducing costs and improving front-to-back-office efficiency1

Preserving reputation and protecting the brand

Developing innovative products while delivering a compelling experience

Decreasing the cost of fines while improving operational efficiency

Engaging with emerging consumers of financewealth management services

OPPORTUNITIES

Mobility

Competition

Increased fraud

Regulations amp compliance

TRENDS

11

Digital Transformation with HID Global

12

Application security

Transactional signing and pattern-based intelligence

Browser protection

Device authentication

User authentication (MFA)

bull Something you know (passwords)

bull Something you have (token)

bull Something you are (biometrics behaviour metrics)

Adaptive multi-layered authenticationWith HID Global financial institutions can inspire confidence and increase adoption of online and mobile channels by offering their customers a worry-free secure and convenient experience which in turn contributes to their bottom line

Our solutions comply with the key banking authentication regulations around the world offering an unparalleled user experience ideal for banks and financial organizations looking to enhance their digital offering while increasing security for the customer

Our approach enables multi-factor authentication for all leading mobile phones and tablets and has a pluggable platform that is extensible for future authentication methods In a landscape of evolving threats banks should embrace regulatory changes and complexities to contain risk and protect their customers

HID Global Adaptive Security approach

13

Secure omni-channel banking

Methods

One-timepassword

Static credentials

Pushnotification

Out of band

Behaviouralanalysis

Certificates

Threat detection

Biometry

Branch ATM Landline eBanking mBanking eCommerce POS

HID Globalrsquos ActivIDreg Authentication Server and Threat Detection Service provide corporate financial and government organizations with risk-appropriate cost-efficient user authentication The solution enables end users to have convenient anytime anywhere access to sensitive data from their smartphones tablets computers and virtually anyother device

Deployment is simplified too through the platformrsquos pre-integration with major cloud apps VPN systems application servers banking applications and other third-party systems

As banks enhance online and mobile channels in response to competition and user demand they must successfully address risks associated with authenticating their customers and employees and integrate their front and back-end systems with acentral ActivIDreg Authentication Server

The HID Global approach

14

Transaction signing

With HID Approve customers can validate transactions in real time eliminating discrepancies from paper signatures in batches at the end of a period For each transaction the customer receives a notification immediately and approves it in real time Orders are processed upon identity verification and validation of the user requesting the transaction

Banking anytime anywhere

Millennials impose new requirements on wealth managers and their demand for technological advances and online platforms are shaping the financial services industry Womenrsquos wealth and income are also growing faster than ever Recent research suggests that women may soon control the majority of UShousehold wealth12

Mutual authentication over the phone

Dedicated relationship managers must ensure that they keep a close relationship with their customers To manage their wealth clients require secure ways (ie instant mutual authentication) of validating transactions over the phone Relationship managers must verify the identity of these customers to ensure the safety of the data and to protect against fraud

Use cases

15

GET IN TOUCHIf you would like to find out how you can provide your customers with a more secure and convenient banking experience you can now request a free consultation

wwwhidglobalcom

Request consultationActivIDreg Trusted

Transactions

ActivIDreg

Threat Detection Service

ActivIDreg

Authentication Platform

Additional resources

INFOGRAPHIC

Top 5 Considerations What to Look for in a Mobile Banking Security Solution

INFOGRAPHIC

FAQ Why Banks Need a Dedicated Mobile Banking Security System

16

OpportunitiesChanging consumer behavior creates new expectations for stronger interaction through digital channels Customers require flexible services to access account information and portfolio performance or to directly seek advice or interact with anadvisor Firms must provide a compelling user experience while simultaneously reducing costs and improving front-to-back-office efficiency1

Preserving reputation and protecting the brand

Developing innovative products while delivering a compelling experience

Decreasing the cost of fines while improving operational efficiency

Engaging with emerging consumers of financewealth management services

OPPORTUNITIES

Mobility

Competition

Increased fraud

Regulations amp compliance

TRENDS

11

Digital Transformation with HID Global

12

Application security

Transactional signing and pattern-based intelligence

Browser protection

Device authentication

User authentication (MFA)

bull Something you know (passwords)

bull Something you have (token)

bull Something you are (biometrics behaviour metrics)

Adaptive multi-layered authenticationWith HID Global financial institutions can inspire confidence and increase adoption of online and mobile channels by offering their customers a worry-free secure and convenient experience which in turn contributes to their bottom line

Our solutions comply with the key banking authentication regulations around the world offering an unparalleled user experience ideal for banks and financial organizations looking to enhance their digital offering while increasing security for the customer

Our approach enables multi-factor authentication for all leading mobile phones and tablets and has a pluggable platform that is extensible for future authentication methods In a landscape of evolving threats banks should embrace regulatory changes and complexities to contain risk and protect their customers

HID Global Adaptive Security approach

13

Secure omni-channel banking

Methods

One-timepassword

Static credentials

Pushnotification

Out of band

Behaviouralanalysis

Certificates

Threat detection

Biometry

Branch ATM Landline eBanking mBanking eCommerce POS

HID Globalrsquos ActivIDreg Authentication Server and Threat Detection Service provide corporate financial and government organizations with risk-appropriate cost-efficient user authentication The solution enables end users to have convenient anytime anywhere access to sensitive data from their smartphones tablets computers and virtually anyother device

Deployment is simplified too through the platformrsquos pre-integration with major cloud apps VPN systems application servers banking applications and other third-party systems

As banks enhance online and mobile channels in response to competition and user demand they must successfully address risks associated with authenticating their customers and employees and integrate their front and back-end systems with acentral ActivIDreg Authentication Server

The HID Global approach

14

Transaction signing

With HID Approve customers can validate transactions in real time eliminating discrepancies from paper signatures in batches at the end of a period For each transaction the customer receives a notification immediately and approves it in real time Orders are processed upon identity verification and validation of the user requesting the transaction

Banking anytime anywhere

Millennials impose new requirements on wealth managers and their demand for technological advances and online platforms are shaping the financial services industry Womenrsquos wealth and income are also growing faster than ever Recent research suggests that women may soon control the majority of UShousehold wealth12

Mutual authentication over the phone

Dedicated relationship managers must ensure that they keep a close relationship with their customers To manage their wealth clients require secure ways (ie instant mutual authentication) of validating transactions over the phone Relationship managers must verify the identity of these customers to ensure the safety of the data and to protect against fraud

Use cases

15

GET IN TOUCHIf you would like to find out how you can provide your customers with a more secure and convenient banking experience you can now request a free consultation

wwwhidglobalcom

Request consultationActivIDreg Trusted

Transactions

ActivIDreg

Threat Detection Service

ActivIDreg

Authentication Platform

Additional resources

INFOGRAPHIC

Top 5 Considerations What to Look for in a Mobile Banking Security Solution

INFOGRAPHIC

FAQ Why Banks Need a Dedicated Mobile Banking Security System

16

Digital Transformation with HID Global

12

Application security

Transactional signing and pattern-based intelligence

Browser protection

Device authentication

User authentication (MFA)

bull Something you know (passwords)

bull Something you have (token)

bull Something you are (biometrics behaviour metrics)

Adaptive multi-layered authenticationWith HID Global financial institutions can inspire confidence and increase adoption of online and mobile channels by offering their customers a worry-free secure and convenient experience which in turn contributes to their bottom line

Our solutions comply with the key banking authentication regulations around the world offering an unparalleled user experience ideal for banks and financial organizations looking to enhance their digital offering while increasing security for the customer

Our approach enables multi-factor authentication for all leading mobile phones and tablets and has a pluggable platform that is extensible for future authentication methods In a landscape of evolving threats banks should embrace regulatory changes and complexities to contain risk and protect their customers

HID Global Adaptive Security approach

13

Secure omni-channel banking

Methods

One-timepassword

Static credentials

Pushnotification

Out of band

Behaviouralanalysis

Certificates

Threat detection

Biometry

Branch ATM Landline eBanking mBanking eCommerce POS

HID Globalrsquos ActivIDreg Authentication Server and Threat Detection Service provide corporate financial and government organizations with risk-appropriate cost-efficient user authentication The solution enables end users to have convenient anytime anywhere access to sensitive data from their smartphones tablets computers and virtually anyother device

Deployment is simplified too through the platformrsquos pre-integration with major cloud apps VPN systems application servers banking applications and other third-party systems

As banks enhance online and mobile channels in response to competition and user demand they must successfully address risks associated with authenticating their customers and employees and integrate their front and back-end systems with acentral ActivIDreg Authentication Server

The HID Global approach

14

Transaction signing

With HID Approve customers can validate transactions in real time eliminating discrepancies from paper signatures in batches at the end of a period For each transaction the customer receives a notification immediately and approves it in real time Orders are processed upon identity verification and validation of the user requesting the transaction

Banking anytime anywhere

Millennials impose new requirements on wealth managers and their demand for technological advances and online platforms are shaping the financial services industry Womenrsquos wealth and income are also growing faster than ever Recent research suggests that women may soon control the majority of UShousehold wealth12

Mutual authentication over the phone

Dedicated relationship managers must ensure that they keep a close relationship with their customers To manage their wealth clients require secure ways (ie instant mutual authentication) of validating transactions over the phone Relationship managers must verify the identity of these customers to ensure the safety of the data and to protect against fraud

Use cases

15

GET IN TOUCHIf you would like to find out how you can provide your customers with a more secure and convenient banking experience you can now request a free consultation

wwwhidglobalcom

Request consultationActivIDreg Trusted

Transactions

ActivIDreg

Threat Detection Service

ActivIDreg

Authentication Platform

Additional resources

INFOGRAPHIC

Top 5 Considerations What to Look for in a Mobile Banking Security Solution

INFOGRAPHIC

FAQ Why Banks Need a Dedicated Mobile Banking Security System

16

Application security

Transactional signing and pattern-based intelligence

Browser protection

Device authentication

User authentication (MFA)

bull Something you know (passwords)

bull Something you have (token)

bull Something you are (biometrics behaviour metrics)

Adaptive multi-layered authenticationWith HID Global financial institutions can inspire confidence and increase adoption of online and mobile channels by offering their customers a worry-free secure and convenient experience which in turn contributes to their bottom line

Our solutions comply with the key banking authentication regulations around the world offering an unparalleled user experience ideal for banks and financial organizations looking to enhance their digital offering while increasing security for the customer

Our approach enables multi-factor authentication for all leading mobile phones and tablets and has a pluggable platform that is extensible for future authentication methods In a landscape of evolving threats banks should embrace regulatory changes and complexities to contain risk and protect their customers

HID Global Adaptive Security approach

13

Secure omni-channel banking

Methods

One-timepassword

Static credentials

Pushnotification

Out of band

Behaviouralanalysis

Certificates

Threat detection

Biometry

Branch ATM Landline eBanking mBanking eCommerce POS

HID Globalrsquos ActivIDreg Authentication Server and Threat Detection Service provide corporate financial and government organizations with risk-appropriate cost-efficient user authentication The solution enables end users to have convenient anytime anywhere access to sensitive data from their smartphones tablets computers and virtually anyother device

Deployment is simplified too through the platformrsquos pre-integration with major cloud apps VPN systems application servers banking applications and other third-party systems

As banks enhance online and mobile channels in response to competition and user demand they must successfully address risks associated with authenticating their customers and employees and integrate their front and back-end systems with acentral ActivIDreg Authentication Server

The HID Global approach

14

Transaction signing

With HID Approve customers can validate transactions in real time eliminating discrepancies from paper signatures in batches at the end of a period For each transaction the customer receives a notification immediately and approves it in real time Orders are processed upon identity verification and validation of the user requesting the transaction

Banking anytime anywhere

Millennials impose new requirements on wealth managers and their demand for technological advances and online platforms are shaping the financial services industry Womenrsquos wealth and income are also growing faster than ever Recent research suggests that women may soon control the majority of UShousehold wealth12

Mutual authentication over the phone

Dedicated relationship managers must ensure that they keep a close relationship with their customers To manage their wealth clients require secure ways (ie instant mutual authentication) of validating transactions over the phone Relationship managers must verify the identity of these customers to ensure the safety of the data and to protect against fraud

Use cases

15

GET IN TOUCHIf you would like to find out how you can provide your customers with a more secure and convenient banking experience you can now request a free consultation

wwwhidglobalcom

Request consultationActivIDreg Trusted

Transactions

ActivIDreg

Threat Detection Service

ActivIDreg

Authentication Platform

Additional resources

INFOGRAPHIC

Top 5 Considerations What to Look for in a Mobile Banking Security Solution

INFOGRAPHIC

FAQ Why Banks Need a Dedicated Mobile Banking Security System

16

Secure omni-channel banking

Methods

One-timepassword

Static credentials

Pushnotification

Out of band

Behaviouralanalysis

Certificates

Threat detection

Biometry

Branch ATM Landline eBanking mBanking eCommerce POS

HID Globalrsquos ActivIDreg Authentication Server and Threat Detection Service provide corporate financial and government organizations with risk-appropriate cost-efficient user authentication The solution enables end users to have convenient anytime anywhere access to sensitive data from their smartphones tablets computers and virtually anyother device

Deployment is simplified too through the platformrsquos pre-integration with major cloud apps VPN systems application servers banking applications and other third-party systems

As banks enhance online and mobile channels in response to competition and user demand they must successfully address risks associated with authenticating their customers and employees and integrate their front and back-end systems with acentral ActivIDreg Authentication Server

The HID Global approach

14

Transaction signing

With HID Approve customers can validate transactions in real time eliminating discrepancies from paper signatures in batches at the end of a period For each transaction the customer receives a notification immediately and approves it in real time Orders are processed upon identity verification and validation of the user requesting the transaction

Banking anytime anywhere

Millennials impose new requirements on wealth managers and their demand for technological advances and online platforms are shaping the financial services industry Womenrsquos wealth and income are also growing faster than ever Recent research suggests that women may soon control the majority of UShousehold wealth12

Mutual authentication over the phone

Dedicated relationship managers must ensure that they keep a close relationship with their customers To manage their wealth clients require secure ways (ie instant mutual authentication) of validating transactions over the phone Relationship managers must verify the identity of these customers to ensure the safety of the data and to protect against fraud

Use cases

15

GET IN TOUCHIf you would like to find out how you can provide your customers with a more secure and convenient banking experience you can now request a free consultation

wwwhidglobalcom

Request consultationActivIDreg Trusted

Transactions

ActivIDreg

Threat Detection Service

ActivIDreg

Authentication Platform

Additional resources

INFOGRAPHIC

Top 5 Considerations What to Look for in a Mobile Banking Security Solution

INFOGRAPHIC

FAQ Why Banks Need a Dedicated Mobile Banking Security System

16

Transaction signing

With HID Approve customers can validate transactions in real time eliminating discrepancies from paper signatures in batches at the end of a period For each transaction the customer receives a notification immediately and approves it in real time Orders are processed upon identity verification and validation of the user requesting the transaction

Banking anytime anywhere

Millennials impose new requirements on wealth managers and their demand for technological advances and online platforms are shaping the financial services industry Womenrsquos wealth and income are also growing faster than ever Recent research suggests that women may soon control the majority of UShousehold wealth12

Mutual authentication over the phone

Dedicated relationship managers must ensure that they keep a close relationship with their customers To manage their wealth clients require secure ways (ie instant mutual authentication) of validating transactions over the phone Relationship managers must verify the identity of these customers to ensure the safety of the data and to protect against fraud

Use cases

15

GET IN TOUCHIf you would like to find out how you can provide your customers with a more secure and convenient banking experience you can now request a free consultation

wwwhidglobalcom

Request consultationActivIDreg Trusted

Transactions

ActivIDreg

Threat Detection Service

ActivIDreg

Authentication Platform

Additional resources

INFOGRAPHIC

Top 5 Considerations What to Look for in a Mobile Banking Security Solution

INFOGRAPHIC

FAQ Why Banks Need a Dedicated Mobile Banking Security System

16

GET IN TOUCHIf you would like to find out how you can provide your customers with a more secure and convenient banking experience you can now request a free consultation

wwwhidglobalcom

Request consultationActivIDreg Trusted

Transactions

ActivIDreg

Threat Detection Service

ActivIDreg

Authentication Platform

Additional resources

INFOGRAPHIC

Top 5 Considerations What to Look for in a Mobile Banking Security Solution

INFOGRAPHIC

FAQ Why Banks Need a Dedicated Mobile Banking Security System

16

Sources1 Guy N (2016) Wealth Management top 10 trends for 2016 Available httpswwwukcapgeminicomresourceswealth-management-top-10-trends-for-2016 Last accessed 22nd February 2017

2 Rogers B (2015) Seeing Beyond unlocking the long-term opportunities in wealth and asset management Available httpwwweycomPublicationvwLUAssetsey-forbes-insight-seeing-beyond$Fileey-forbes-insight-seeing-beyondpdf Last accessed 22nd February 2017

3 EY (2016) Could your clientsrsquo needs be your own competitive advantage Available httpwwweycomPublicationvwLUAssetsEY-could-your-client-needs-be-your-competitive-advantage$FILEEY-could-your-client-needs-be-your-competitive-advantagepdf Last accessed 22nd February 2017

4 EY (2016) Winds of change Wealth management reimagined Available httpwwweycomPublicationvwLUAssetsWinds_of_change_Wealth_management_reimagined24FILEEY-winds-of-change-wealth-management-reimaginedpdf Last accessed 22nd February 2017

5 Grene S (2014) What women want is good financial advice Available httpswwwftcomcontent33407232-7636-11e4-9761-00144feabdc0 Last accessed 22nd February 2017

6 Capgemini RBC Wealth Management (2015) World Wealth Report 2015 Available httpswwwukcapgeminicomthought-leadershipworld-wealth-report-2015-from-capgemini-and-rbc-wealth-management Last accessed 22nd February 2017

7 Capgemini (2016) Word Wealth Report 2016 Available httpswwwukcapgeminicomexpertsthought-leadershipworld-wealth-report-2016 Last accessed 22nd February 2017

8 Capgemini (2013) Regulatory change spurs need for investment finds World Wealth Report 2013 Available httpswwwukcapgeminicomnewsregulatory-change-spurs-need-for-investment-finds-world-wealth-report-2013 Last accessed 22nd February 2017

9 EY SEI (2015) Seeing Beyond Unlocking the Long-Term Opportunities in Wealth and Asset Management Available httpwwwforbescomforbesinsightsey_seiindexhtml Last accessed 22nd February 2017

10 White S Franklin J (2014) Wealth managers look online to bolster advisory services Available httpwwwreuterscomarticleus-wealth-summit-digital-idUSKBN0ET1IN20140618 Last accessed 22nd February 2017

11 Ponemon L (2015) Cost of Data Breaches Rising Globally Says lsquo2015 Cost of a Data Breach Study Global Analysisrsquo Available httpssecurityintelligencecomcost-of-a-data-breach-2015 Last accessed 22nd February 2017

12 Kingsbury K (2015) Financial concerns of women Available wwwbmocomprivatebankpdfQ1-2015-Wealth- Institute-Report-Financial-Concerns-of-Womenpdf Last accessed 6th April 2017

An ASSA ABLOY Group brand

North America +1 512 776 9000 bull Toll Free 1 800 237 7769 Europe Middle East Africa +44 1440 714 850 Asia Pacific +852 3160 9800 bull Latin America +52 55 5081 1650

copy 2017 HID Global CorporationASSA ABLOY AB All rights reserved HID HID Global the HID Blue Brick logo the Chain Design and HID the HID logo and ActivID are trademarks or registered trademarks of HID Global or its licensor(s)supplier(s) in the US and other countries and may not be used without permission All other trademarks service marks and product or service names are trademarks or registered trademarks of their respective owners 2017-07-12-iam-future-wealth-management-eb PLT-03399

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