Risk

The world is divided into those who pursue popular decisions that are more likely to fail and those who go against the crowd and end up having the last laugh.

Synchrony Financial and Alliance Data Systems are particularly vulnerable to recent shifts in Americans’ shopping habits, according to new research from Moody’s Investors Service.

Barclays, Goldman Sachs, HSBC and Morgan Stanley are backing a shared vendor risk management platform. The tough part will be agreeing on a final product.

Readers weigh in on chatbots, Amazon’s physical footprint expansion plans, alternative credit data and more.

The House Financial Services Committee approved several bills Thursday designed to boost the private flood insurance market.

The message to banks is loud and clear: A vendor’s mistake is your mistake. You can outsource a function, but not the responsibility for mishaps.

Mobile ATMs are generally more secure than card-based machines, but still require more security than more traditional digital transactions, writes Sam Shawki, founder and CEO of MagicCube.

Narcissistic biases can lead us to favor those who look like us or have similar backgrounds or other common bonds. This inevitably affects the quality of hiring and risk management decisions.

The American Civil Liberties Union is accusing JPMorgan Chase of violating the Civil Rights Act by discriminating against fathers when they ask for parental leave.

Large banks have scaled back lending as competition has intensified and credit unions and financing arms of car manufacturers are picking up the slack.

Not only is the uninsured sector growing, but the Bank of Canada is seeing some riskier mortgages within that area as it studies recent disruptions in the market.

Large banks have scaled back lending as competition has intensified and credit unions and financing arms of car manufacturers are picking up the slack.

Some of the biggest risks facing any large bank come from within, such as human error or mischievous traders. Risk management consultant and author Andrew Waxman discusses how cognitive psychology and augmented intelligence offer help.

Biometric scans provide security and convenience, but still carry risk that requires additional technology, writes ValuePenguin analyst Robert Harrow.

Attacks like the WannaCry ransomware require issuers to educate staff and shore up technology defenses, writes Bob Antia, cheif security officer of Unitrends.

Auditors performing a review of Ocwen Financial padded time sheets and claimed excessive and improper expenses, including lengthy travel and meals at strip clubs and casinos, according to a lawsuit filed against Fidelity Information Services.

Readers weigh in on a proposal for encouraging small bank installment loans, a firm that uses AI to reduce false alarms, what security improvements are needed for sharing customer data, and more.

As volume grows, fraud and security risk will expand as well. Merchants and issuers can't afford to avoid the extra work to secure the channel.

Better information security will remain the foundation of success as the financial services industry moves quickly to engage new business models.

In a world where confidence is rewarded more than indecision, businesses risk elevating confident leaders who overestimate their abilities. In banking, that can have harmful effects.