Security: 8 steps for banks to simplify Identity and Access Management

In the world of banking technology and cybersecurity, understanding effective Identity and Access Management (IAM) strategies and being able to implement them is of the utmost importance. While the complexities surrounding IAM can often appear daunting, they don’t have to be. By looking at it through a different lens, IAM can be broken down into clear and practical measures to empower financial institutions.

In simple terms, IAM functions as a digital gatekeeper. It is meant to ensure that access to necessary tools and information within an institution is only available to the right people at the right time, granting access that is needed to improve job performance while enhancing security.

At a workplace, it’s unlikely that all employees would have a master key to every lock in the building. Instead, employees are granted access to the doors crucial to their jobs’ function. In the same way, User Access Control, a crucial aspect of IAM, manages the permissions of those who can see and access all areas within digital systems. This enhances efficiency and security, while protecting an institution from unnecessary risk.

The FFIEC’s guidance “Authentication and Access to Financial Institution Services and Systems” highlights the importance of moving beyond simple and easy-to-guess passwords and advocates for Multi-Factor Authentication (MFA) and layered security controls. Layering security controls is equivalent to needing multiple keys to unlock a treasure chest. These things, in addition to regular User Access Reviews and ensuring appropriate system access align with current roles and responsibilities, can greatly enhance the level of security felt within financial institutions.

Where should financial institutions start?

1. Begin with a risk assessment: Understanding your institution’s unique risks is key. Oversee a detailed assessment to identify sensitive data, system vulnerabilities, and the effectiveness of current defenses.
2. Restrict access to necessary systems: Ensure employees only have access to the information necessary for their roles by implementing “least privilege” permissions. This strategic limitation is a crucial step in mitigating the risk of data breaches.
3. Conduct frequent access reviews: Make it your policy to regularly evaluate whether staff access levels are appropriate by conducting enterprise-wide User Access Reviews. Quick action on any misalignments reinforces your institution’s security stance.
4. Decide on user-friendly solutions: Select security tools, such as multi-factor authentication methods, that are both secure and easy to use, encouraging adoption across your team. Promote a culture where security measures are seen as enablers, not obstacles.
5. Prioritize key areas in security reviews: Focus your team’s efforts on monitoring and reviewing access to high-risk areas, beginning with privileged access and then moving to changes since the last review. Ensure that these critical points are not just checked but consistently monitored for changes.
6. Build alliances with trusted vendors: Form strategic partnerships with vendors that specialize in cybersecurity for financial institutions. Such relationships can provide tailored solutions that align with your institution’s needs.
7. Institute ongoing policy and tool updates: Take the initiative to keep your institution’s security practices agile. Regularly revisiting and updating these policies is key to defending against new and evolving cyber threats.
8. Drive a culture of continuous education: Emphasize the importance of regular, straightforward training. An informed team is your first line of defense, contributing to a secure and vigilant institutional environment.

Implementing complex IAM strategies is not just a technical need; it reinforces customers’ faith in the institutions they rely on.

By implementing action in these areas, financial institutions are not only taking steps to protect their own data and systems but also strengthening their commitment to customers’ security and the level of trust they earn for their organization.

Beth Sumner is Vice President, Customer Success at Finosec.