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Leveraging security to develop
new digital banking models
Luis Saiz
Head of Innovation in Security
BBVA IT Team-Digital Banking
Information Security FS 2014
Leveraging security to develop new digital banking models
2
Leveraging security to develop
new digital banking models
Bank’s Key Success Factors
IT Risk, Fraud and Security role
Digital Bank: A new paradigm
Opportunities and Strategies:
security as part of the business
Information Security FS 2014
Leveraging security to develop new digital banking models
3
BBVA Highlights
Information Security FS 2014
Leveraging security to develop new digital banking models
4
Leveraging security to develop
new digital banking models
Bank’s Key Success Factors
Identity & Cloud - First Steps
Digital Bank: A new paradigm
Opportunities and Strategies:
security as part of the business
Information Security FS 2014
Leveraging security to develop new digital banking models
5
Bank’s Key Success Factors
Accounting
Information Security FS 2014
Leveraging security to develop new digital banking models
6
Accounting
Bank’s Key Success Factors
Information Security FS 2014
Leveraging security to develop new digital banking models
7
Accounting
Bank’s Key Success Factors
Information Security FS 2014
Leveraging security to develop new digital banking models
8
Accounting
Bank’s Key Success Factors
Information Security FS 2014
Leveraging security to develop new digital banking models
9
Risk Management
Bank’s Key Success Factors
Information Security FS 2014
Leveraging security to develop new digital banking models
10
Risk Management
Bank’s Key Success Factors
Information Security FS 2014
Leveraging security to develop new digital banking models
11
Risk Management
Bank’s Key Success Factors
Information Security FS 2014
Leveraging security to develop new digital banking models
12
Risk Management
Bank’s Key Success Factors
Information Security FS 2014
Leveraging security to develop new digital banking models
13
Risk Management
Bank’s Key Success Factors
Information Security FS 2014
Leveraging security to develop new digital banking models
14
Risk Management
Bank’s Key Success Factors
Information Security FS 2014
Leveraging security to develop new digital banking models
15
Risk Management
Bank’s Key Success Factors
Information Security FS 2014
Leveraging security to develop new digital banking models
16
Identity Management
Bank’s Key Success Factors
Information Security FS 2014
Leveraging security to develop new digital banking models
17
Identity Management
Bank’s Key Success Factors
Information Security FS 2014
Leveraging security to develop new digital banking models
18
Identity Management
Bank’s Key Success Factors
Information Security FS 2014
Leveraging security to develop new digital banking models
19
All 3 are regulated:
Accounting: Account Auditing
Risk Management: Risk Supervision
Identity Management: Authenticity (KYC, ML)
Bank’s Key Success Factors
Information Security FS 2014
Leveraging security to develop new digital banking models
20
Leveraging security to develop
new digital banking models
Bank’s Key Success Factors
IT Risk, Fraud & Security role
Digital Bank: A new paradigm
Opportunities and Strategies:
security as part of the business
Information Security FS 2014
Leveraging security to develop new digital banking models
21
Give me a Point of Support….
…. and I will move the world
Information Security FS 2014
Leveraging security to develop new digital banking models
22
…But also some Power:
Organization and Expertise
IT Risk, Fraud & Security
Risk Analysis Methodologies
Fraud Experience
Security Development Team
Give me a Point of Support….
Information Security FS 2014
Leveraging security to develop new digital banking models
23
Leveraging security to develop
new digital banking models
Bank’s Key Success Factors
IT Risk, Fraud and Security role
Digital Bank: A new paradigm
Opportunities and Strategies:
security as part of the business
Information Security FS 2014
Leveraging security to develop new digital banking models
24
Nexus of Forces
Information Security FS 2014
Leveraging security to develop new digital banking models
25
Nexus of Forces
Security
Information Security FS 2014
Leveraging security to develop new digital banking models
26
Nexus of Forces
Customer
Information Security FS 2014
Leveraging security to develop new digital banking models
27
Digital Bank: A new paradigm
Customer
Digital banking will no
longer be offer but
demand driven
Information Security FS 2014
Leveraging security to develop new digital banking models
28
Digital Bank: A new paradigm
Customer
Digital banking will no
longer be offer but
demand driven
And the first demand is amazing UX
Information Security FS 2014
Leveraging security to develop new digital banking models
29
Digital Bank: A new paradigm
Customer
Digital banking will no
longer be offer but
demand driven
And the first demand is amazing UX
How is your security processes UX?
Information Security FS 2014
Leveraging security to develop new digital banking models
30
Digital Bank: A new paradigm
Customer
Digital banking will no
longer be offer but
demand driven
Second demand is velocity
Information Security FS 2014
Leveraging security to develop new digital banking models
31
Digital Bank: A new paradigm
Customer
Digital banking will no
longer be offer but
demand driven
It’s your IT Risk, Fraud & Security
ready to run?
Second demand is velocity
Information Security FS 2014
Leveraging security to develop new digital banking models
32
Digital Bank: A new paradigm
Customer
Digital banking security
must meet all
customer’s risk and
privacy profiles
Information Security FS 2014
Leveraging security to develop new digital banking models
33
Digital Bank: A new paradigm
Customer
Digital banking security
must meet all
customer’s risk and
privacy profiles
Paranoid Promiscuous
Information Security FS 2014
Leveraging security to develop new digital banking models
34
Digital Bank: A new paradigm
IT it’s suffering a silent Tsunami
Information Security FS 2014
Leveraging security to develop new digital banking models
35
Digital Bank: A new paradigm
Information Security FS 2014
Leveraging security to develop new digital banking models
36
Digital Bank: A new paradigm
Information Security FS 2014
Leveraging security to develop new digital banking models
37
Digital Bank: A new paradigm
» DevOps
» SDx: CPU/Storage/Network
» Continuous Flows:
• Integration
• Delivery
• Deployment
Information Security FS 2014
Leveraging security to develop new digital banking models
38
Leveraging security to develop
new digital banking models
Bank’s Key Success Factors
IT Risk, Fraud and Security role
Digital Bank: A new paradigm
Opportunities and Strategies:
security as part of the business
Information Security FS 2014
Leveraging security to develop new digital banking models
39
ISACA: It May Be Riskier to Ignore
Big Data Than Implement It
Cloud as a Strategy
http://www.isaca.org/About-ISACA/Press-room/News-Releases/2014/Pages/It-May-Be-Riskier-to-Ignore-Big-Data-Than-Implement-It.aspx
Information Security FS 2014
Leveraging security to develop new digital banking models
40
ISACA:
Big Data Than Implement
Cloud as a Strategy
It May Be Riskier to Ignore Cloud
Than Implement It
Information Security FS 2014
Leveraging security to develop new digital banking models
41
Commitment: CEO leading
Moreover, a whole new league of competitors is emerging, mostly but not
exclusively from the online world. These new players are free of legacies,
the structures inherited by the banks: obsolete and inefficient IT systems and
costly physical distribution networks.
And What Is It That Customers Want? First, they want a quick, sensibly
priced real-time service under transparent terms and conditions, tailored to
their own conditions and needs. […]
To compete in the twenty-first-century banking industry, we need a completely
different platform concept developed from scratch under the aegis of far
more advanced paradigms than those of 50 years ago, so that the system
can integrate vast quantities of data with all possible points and channels of
contact with all customers, without any cracks or discontinuities.
https://www.bbvaopenmind.com/wp-content/uploads/2014/04/BBVA-OpenMind-book-Change-19-key-essays-on-how-internet-is-changing-our-lives-Technology-Internet-Innovation.pdf
Cloud as a Strategy
Information Security FS 2014
Leveraging security to develop new digital banking models
42
Commitment: CEO leading
Moreover,
exclusively from the online world. These
the structures inherited by the banks: obsolete and inefficient IT systems and
costly physical distribution networks.
And
priced real-time
their own conditions and needs.
To compete in the twenty-first-century banking industry, we need a completely
different platform concept developed from scratch under the aegis of far
more advanced paradigms than those of 50 years ago
can integrate vast quantities of data with all possible points and channels of
contact with all customers,
https://www.bbvaopenmind.com/wp-content/uploads/2014/04/BBVA-OpenMind-book-Change-19-key-essays-on-how-internet-is-changing-our-lives-Technology-Internet-Innovation.pdf
Cloud as a Strategy
1st Bank Web Scale?
Liberty Project
Mainframe
Demand
Read (>90%) Read/Write
Cheaper and infinity-scalable read-only services
Demand
Cloudable
service
Mainframe
Read Read/Write
Cache update
Cloud as a Strategy
Information Security FS 2014
Leveraging security to develop new digital banking models
44
Business & IT alignment
Cloud as a Strategy
Elastic
Distributed
Stateless
Information Security FS 2014
Leveraging security to develop new digital banking models
45
Business & IT alignment
Cloud as a Strategy
Stateless
Complex
ABAC
+ =
Information Security FS 2014
Leveraging security to develop new digital banking models
46
Cloud as a Strategy
Risk & Compliance Controls
Risk
Compliance
Legacy Systems
Efficiency achieved if IT
Risk & Fraud are under
the same Direction
Information Security FS 2014
Leveraging security to develop new digital banking models
47
Cloud as a Strategy
Risk & Compliance Controls
Risk
Compliance
Cloud
Misalignment on real
risks
Information Security FS 2014
Leveraging security to develop new digital banking models
48
Compliance
Proposed model fits corporate needs
Flexibility
BBVA
Private
Cloud
Hybrid
Multi
Cloud
BBVA
DMZ
Public
Cloud
Hosting
provider
Automation
tools
Cloud as a Strategy
BBVA Infrastructure Taxonomy
Information Security FS 2014
Leveraging security to develop new digital banking models
49
Public
Proposed model fits corporate needs, compliance & risk
Multiple
CSP
BBVA
Private
Cloud
Multi Cloud
Amazon
BBVA
Private Cloud
Multi DC
Single
CSP
Private
Hybrid
Multi Cloud
Cloud as a Strategy
Information Security FS 2014
Leveraging security to develop new digital banking models
50
Google
Service A
Srv-01
Srv-02
Srv-03
...
Service B
Srv-21
Srv-22
Srv-23
...
Service H
Hydra-91
Amazon
Service A
Srv-11
Srv-12
Srv-13
...
Service C
Srv-31
Srv-32
Srv-33
...
Service H
Hydra-92
BBVA@mx
Service H
Hydra-93
Service C
Srv-41
Srv-42
Srv-43
...
· · · ∞
Need Service A
Use Srv-13
Multi cloud brokering
Client-side balancing
Sync
StatusStatus
1 2
3
Cloud as a Strategy
Hydra at a glance
Information Security FS 2014
Leveraging security to develop new digital banking models
51
Open issues
Cloud as a Strategy
Software Defined Security
ACID Distributed Databases
Agile/DevOps & Security
Information Security FS 2014
Leveraging security to develop new digital banking models
52
Risk gaps: Business vs. Security
Security as part of the Business
Biz
“No”
Sec
Old world
Information Security FS 2014
Leveraging security to develop new digital banking models
53
Security as part of the Business
Risk gaps: Business vs. Security
Biz
“No”
Sec
Biz=Sec
“Ideal” worldOld world
Business
Alignment
Information Security FS 2014
Leveraging security to develop new digital banking models
54
Risk gaps: Business vs. Security
Security as part of the Business
Today’s real world
“No”
zone
Alignement
BizSec
New
Biz
Information Security FS 2014
Leveraging security to develop new digital banking models
55
Risk gaps: Business vs. Security
Security as part of the Business
“No”
zone
Alignement
BizSec
New
Biz
IdMaaS
Federation
Social ID
Risk Based
AuthN
HCE One click
purchase
Mobile 2FA
Remote
Onboarding
Cloud
Tokenization
AuthZ
delegation
Async
AuthZ
Information Security FS 2014
Leveraging security to develop new digital banking models
56
Security as part of the Business
EXECUTION IS EVERYTHING
THANKS
Luis Saiz
luis.saiz@bbva.com
@lsaiz
Blog: FUDandparanoia.com (comming soon)
Leveraging security to develop
new digital banking models

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Leveraging security to develop new digital banking models

  • 1. Leveraging security to develop new digital banking models Luis Saiz Head of Innovation in Security BBVA IT Team-Digital Banking
  • 2. Information Security FS 2014 Leveraging security to develop new digital banking models 2 Leveraging security to develop new digital banking models Bank’s Key Success Factors IT Risk, Fraud and Security role Digital Bank: A new paradigm Opportunities and Strategies: security as part of the business
  • 3. Information Security FS 2014 Leveraging security to develop new digital banking models 3 BBVA Highlights
  • 4. Information Security FS 2014 Leveraging security to develop new digital banking models 4 Leveraging security to develop new digital banking models Bank’s Key Success Factors Identity & Cloud - First Steps Digital Bank: A new paradigm Opportunities and Strategies: security as part of the business
  • 5. Information Security FS 2014 Leveraging security to develop new digital banking models 5 Bank’s Key Success Factors Accounting
  • 6. Information Security FS 2014 Leveraging security to develop new digital banking models 6 Accounting Bank’s Key Success Factors
  • 7. Information Security FS 2014 Leveraging security to develop new digital banking models 7 Accounting Bank’s Key Success Factors
  • 8. Information Security FS 2014 Leveraging security to develop new digital banking models 8 Accounting Bank’s Key Success Factors
  • 9. Information Security FS 2014 Leveraging security to develop new digital banking models 9 Risk Management Bank’s Key Success Factors
  • 10. Information Security FS 2014 Leveraging security to develop new digital banking models 10 Risk Management Bank’s Key Success Factors
  • 11. Information Security FS 2014 Leveraging security to develop new digital banking models 11 Risk Management Bank’s Key Success Factors
  • 12. Information Security FS 2014 Leveraging security to develop new digital banking models 12 Risk Management Bank’s Key Success Factors
  • 13. Information Security FS 2014 Leveraging security to develop new digital banking models 13 Risk Management Bank’s Key Success Factors
  • 14. Information Security FS 2014 Leveraging security to develop new digital banking models 14 Risk Management Bank’s Key Success Factors
  • 15. Information Security FS 2014 Leveraging security to develop new digital banking models 15 Risk Management Bank’s Key Success Factors
  • 16. Information Security FS 2014 Leveraging security to develop new digital banking models 16 Identity Management Bank’s Key Success Factors
  • 17. Information Security FS 2014 Leveraging security to develop new digital banking models 17 Identity Management Bank’s Key Success Factors
  • 18. Information Security FS 2014 Leveraging security to develop new digital banking models 18 Identity Management Bank’s Key Success Factors
  • 19. Information Security FS 2014 Leveraging security to develop new digital banking models 19 All 3 are regulated: Accounting: Account Auditing Risk Management: Risk Supervision Identity Management: Authenticity (KYC, ML) Bank’s Key Success Factors
  • 20. Information Security FS 2014 Leveraging security to develop new digital banking models 20 Leveraging security to develop new digital banking models Bank’s Key Success Factors IT Risk, Fraud & Security role Digital Bank: A new paradigm Opportunities and Strategies: security as part of the business
  • 21. Information Security FS 2014 Leveraging security to develop new digital banking models 21 Give me a Point of Support…. …. and I will move the world
  • 22. Information Security FS 2014 Leveraging security to develop new digital banking models 22 …But also some Power: Organization and Expertise IT Risk, Fraud & Security Risk Analysis Methodologies Fraud Experience Security Development Team Give me a Point of Support….
  • 23. Information Security FS 2014 Leveraging security to develop new digital banking models 23 Leveraging security to develop new digital banking models Bank’s Key Success Factors IT Risk, Fraud and Security role Digital Bank: A new paradigm Opportunities and Strategies: security as part of the business
  • 24. Information Security FS 2014 Leveraging security to develop new digital banking models 24 Nexus of Forces
  • 25. Information Security FS 2014 Leveraging security to develop new digital banking models 25 Nexus of Forces Security
  • 26. Information Security FS 2014 Leveraging security to develop new digital banking models 26 Nexus of Forces Customer
  • 27. Information Security FS 2014 Leveraging security to develop new digital banking models 27 Digital Bank: A new paradigm Customer Digital banking will no longer be offer but demand driven
  • 28. Information Security FS 2014 Leveraging security to develop new digital banking models 28 Digital Bank: A new paradigm Customer Digital banking will no longer be offer but demand driven And the first demand is amazing UX
  • 29. Information Security FS 2014 Leveraging security to develop new digital banking models 29 Digital Bank: A new paradigm Customer Digital banking will no longer be offer but demand driven And the first demand is amazing UX How is your security processes UX?
  • 30. Information Security FS 2014 Leveraging security to develop new digital banking models 30 Digital Bank: A new paradigm Customer Digital banking will no longer be offer but demand driven Second demand is velocity
  • 31. Information Security FS 2014 Leveraging security to develop new digital banking models 31 Digital Bank: A new paradigm Customer Digital banking will no longer be offer but demand driven It’s your IT Risk, Fraud & Security ready to run? Second demand is velocity
  • 32. Information Security FS 2014 Leveraging security to develop new digital banking models 32 Digital Bank: A new paradigm Customer Digital banking security must meet all customer’s risk and privacy profiles
  • 33. Information Security FS 2014 Leveraging security to develop new digital banking models 33 Digital Bank: A new paradigm Customer Digital banking security must meet all customer’s risk and privacy profiles Paranoid Promiscuous
  • 34. Information Security FS 2014 Leveraging security to develop new digital banking models 34 Digital Bank: A new paradigm IT it’s suffering a silent Tsunami
  • 35. Information Security FS 2014 Leveraging security to develop new digital banking models 35 Digital Bank: A new paradigm
  • 36. Information Security FS 2014 Leveraging security to develop new digital banking models 36 Digital Bank: A new paradigm
  • 37. Information Security FS 2014 Leveraging security to develop new digital banking models 37 Digital Bank: A new paradigm » DevOps » SDx: CPU/Storage/Network » Continuous Flows: • Integration • Delivery • Deployment
  • 38. Information Security FS 2014 Leveraging security to develop new digital banking models 38 Leveraging security to develop new digital banking models Bank’s Key Success Factors IT Risk, Fraud and Security role Digital Bank: A new paradigm Opportunities and Strategies: security as part of the business
  • 39. Information Security FS 2014 Leveraging security to develop new digital banking models 39 ISACA: It May Be Riskier to Ignore Big Data Than Implement It Cloud as a Strategy http://www.isaca.org/About-ISACA/Press-room/News-Releases/2014/Pages/It-May-Be-Riskier-to-Ignore-Big-Data-Than-Implement-It.aspx
  • 40. Information Security FS 2014 Leveraging security to develop new digital banking models 40 ISACA: Big Data Than Implement Cloud as a Strategy It May Be Riskier to Ignore Cloud Than Implement It
  • 41. Information Security FS 2014 Leveraging security to develop new digital banking models 41 Commitment: CEO leading Moreover, a whole new league of competitors is emerging, mostly but not exclusively from the online world. These new players are free of legacies, the structures inherited by the banks: obsolete and inefficient IT systems and costly physical distribution networks. And What Is It That Customers Want? First, they want a quick, sensibly priced real-time service under transparent terms and conditions, tailored to their own conditions and needs. […] To compete in the twenty-first-century banking industry, we need a completely different platform concept developed from scratch under the aegis of far more advanced paradigms than those of 50 years ago, so that the system can integrate vast quantities of data with all possible points and channels of contact with all customers, without any cracks or discontinuities. https://www.bbvaopenmind.com/wp-content/uploads/2014/04/BBVA-OpenMind-book-Change-19-key-essays-on-how-internet-is-changing-our-lives-Technology-Internet-Innovation.pdf Cloud as a Strategy
  • 42. Information Security FS 2014 Leveraging security to develop new digital banking models 42 Commitment: CEO leading Moreover, exclusively from the online world. These the structures inherited by the banks: obsolete and inefficient IT systems and costly physical distribution networks. And priced real-time their own conditions and needs. To compete in the twenty-first-century banking industry, we need a completely different platform concept developed from scratch under the aegis of far more advanced paradigms than those of 50 years ago can integrate vast quantities of data with all possible points and channels of contact with all customers, https://www.bbvaopenmind.com/wp-content/uploads/2014/04/BBVA-OpenMind-book-Change-19-key-essays-on-how-internet-is-changing-our-lives-Technology-Internet-Innovation.pdf Cloud as a Strategy 1st Bank Web Scale?
  • 43. Liberty Project Mainframe Demand Read (>90%) Read/Write Cheaper and infinity-scalable read-only services Demand Cloudable service Mainframe Read Read/Write Cache update Cloud as a Strategy
  • 44. Information Security FS 2014 Leveraging security to develop new digital banking models 44 Business & IT alignment Cloud as a Strategy Elastic Distributed Stateless
  • 45. Information Security FS 2014 Leveraging security to develop new digital banking models 45 Business & IT alignment Cloud as a Strategy Stateless Complex ABAC + =
  • 46. Information Security FS 2014 Leveraging security to develop new digital banking models 46 Cloud as a Strategy Risk & Compliance Controls Risk Compliance Legacy Systems Efficiency achieved if IT Risk & Fraud are under the same Direction
  • 47. Information Security FS 2014 Leveraging security to develop new digital banking models 47 Cloud as a Strategy Risk & Compliance Controls Risk Compliance Cloud Misalignment on real risks
  • 48. Information Security FS 2014 Leveraging security to develop new digital banking models 48 Compliance Proposed model fits corporate needs Flexibility BBVA Private Cloud Hybrid Multi Cloud BBVA DMZ Public Cloud Hosting provider Automation tools Cloud as a Strategy BBVA Infrastructure Taxonomy
  • 49. Information Security FS 2014 Leveraging security to develop new digital banking models 49 Public Proposed model fits corporate needs, compliance & risk Multiple CSP BBVA Private Cloud Multi Cloud Amazon BBVA Private Cloud Multi DC Single CSP Private Hybrid Multi Cloud Cloud as a Strategy
  • 50. Information Security FS 2014 Leveraging security to develop new digital banking models 50 Google Service A Srv-01 Srv-02 Srv-03 ... Service B Srv-21 Srv-22 Srv-23 ... Service H Hydra-91 Amazon Service A Srv-11 Srv-12 Srv-13 ... Service C Srv-31 Srv-32 Srv-33 ... Service H Hydra-92 BBVA@mx Service H Hydra-93 Service C Srv-41 Srv-42 Srv-43 ... · · · ∞ Need Service A Use Srv-13 Multi cloud brokering Client-side balancing Sync StatusStatus 1 2 3 Cloud as a Strategy Hydra at a glance
  • 51. Information Security FS 2014 Leveraging security to develop new digital banking models 51 Open issues Cloud as a Strategy Software Defined Security ACID Distributed Databases Agile/DevOps & Security
  • 52. Information Security FS 2014 Leveraging security to develop new digital banking models 52 Risk gaps: Business vs. Security Security as part of the Business Biz “No” Sec Old world
  • 53. Information Security FS 2014 Leveraging security to develop new digital banking models 53 Security as part of the Business Risk gaps: Business vs. Security Biz “No” Sec Biz=Sec “Ideal” worldOld world Business Alignment
  • 54. Information Security FS 2014 Leveraging security to develop new digital banking models 54 Risk gaps: Business vs. Security Security as part of the Business Today’s real world “No” zone Alignement BizSec New Biz
  • 55. Information Security FS 2014 Leveraging security to develop new digital banking models 55 Risk gaps: Business vs. Security Security as part of the Business “No” zone Alignement BizSec New Biz IdMaaS Federation Social ID Risk Based AuthN HCE One click purchase Mobile 2FA Remote Onboarding Cloud Tokenization AuthZ delegation Async AuthZ
  • 56. Information Security FS 2014 Leveraging security to develop new digital banking models 56 Security as part of the Business EXECUTION IS EVERYTHING
  • 57. THANKS Luis Saiz luis.saiz@bbva.com @lsaiz Blog: FUDandparanoia.com (comming soon) Leveraging security to develop new digital banking models