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A study conducted by McKinsey & Company in collaboration with the Institute of International Finance (IIF) highlights that financial institutions accelerating their adoption of emerging technologies such as artificial intelligence (AI) and blockchain face heightened risk exposure. The rapid pace of digital transformation often surpasses the industry’s ability to effectively assess and mitigate these risks. The increasing prevalence of cyber threats necessitates that organisations adopt a proactive and integrated approach to cybersecurity, fostering resilience not only within IT systems but throughout the entire business to protect operations and uphold customer trust.
The financial services sector in Australia has been persistently challenged by cyber threats and has faced considerable scrutiny from regulators and the public for several years. This challenge extends beyond major banking institutions to include mutual Authorised Deposit-taking Institutions (ADIs). New regulations introduced by the Australian Prudential Regulation Authority (APRA), which will take effect on July 1, 2025, will impose stricter cybersecurity requirements on banks and other financial institutions. These regulations are designed to enhance operational risk management and resilience against disruptions, thereby placing additional responsibilities on CIOs to ensure compliance with the established cybersecurity protocols.
In light of these technological and business model transformations, the concept of trust is becoming increasingly critical.
The critical role of trust in ensuring operational resilience in financial services
Trust is the cornerstone of modern financial services, influencing every aspect of operations—from adopting emerging technologies like AI to identifying and mitigating cyber threats. It underpins relationships with customers, guiding decision-making and shaping brand reputation. Trust also plays a pivotal role in selecting the right partners and experts to navigate the complexities of digital transformation and cybersecurity. So, how can financial institutions effectively build and maintain that trust while in the eye of a disruptive storm?
Build trusted workplaces
By prioritising key aspects like security, regulatory compliance, data integrity, and employee confidence, trusted workplaces build trust among customers, employees, and stakeholders. Trusted workspaces enable seamless remote and hybrid work models, protect sensitive data, and ensure business continuity even in the face of operations disruptions.
Ensure transparent communications
In times of change or disruption, transparency is critical to maintaining customer trust. Financial institutions must inform customers about ongoing changes and their potential impacts. Proactively sharing clear, timely updates—and acknowledging any uncertainties or challenges—demonstrates empathy and helps build confidence.
Introduce feedback mechanisms
Gathering and acting on customer feedback is essential for adapting to evolving needs and maintaining strong relationships. Financial institutions can implement tools such as surveys, focus groups, and customer forums to gain valuable insights into their experiences, expectations, and concerns. This feedback loop helps make necessary adjustments and signals to customers that their opinions matter.
Provide employee training
As customer interactions become more complex, especially during disruption, well-trained employees are key to maintaining trust. Providing staff with the necessary training and resources enables them to confidently handle customer concerns, ensuring seamless communication and positive experiences.
Select trusted partners
Choosing the right trusted partners is essential. The right partners bring technical expertise and shared values around transparency, compliance, and customer-centricity. A good fit goes beyond simply meeting operational needs—it’s about aligning on long-term goals, ensuring mutual support during disruptions, and fostering innovation.
Adopt a customer-centric approach
Organisations can better align their offerings with actual customer needs by involving customers in the design and iteration of financial products, such as through user testing, feedback loops, and co-creation processes. Actively listening to and addressing customer pain points ensures more relevant and valuable solutions and builds a deeper sense of trust.
Experteq’s approach to supporting financial services
In critical operations, such as financial services that involves many service providers, it is essential that the CIO has a comprehensive overview and deep understanding of the entire supply chain. It’s crucial that every company within this supply chain, such as technology providers and third-party, vendors, adhere to the same rigorous frameworks as the primary service provider.
By streamlining the supplier network and standardising controls, organisations can ensure consistent adherence to these frameworks, enhancing both compliance and operational integrity. This approach strengthens regulatory compliance and reinforces the trust of Authorised Deposit-taking Institutions (ADIs), ensuring they meet their ultimate responsibilities for overseeing these vital operations.
Experteq has been a trusted partner to the Mutual ADI sector for nearly four decades, and we take great pride in our deep-rooted history and commitment to supporting the industry’s growth and resilience. Our expertise in delivering tailored technology solutions helps financial institutions navigate the evolving landscape, ensuring both operational security and long-term success.
To gain deeper insights into the current state of the Mutual ADI sector and how we’re helping shape a secure digital future, download our whitepaper: Securing the Digital Future for Mutual ADIs and Their Members Through a Human-Centered Approach. The discussion paper makes cybersecurity recommendations for member-based ADIs of all sizes – from organisations with one-person IT teams to those considering partnering with managed service providers. To learn more about the Experteq approach, please contact us.
