Big Banks on a Mission to Save Money
It has been publicly stated that Commonwealth Bank is currently seeking to shift quite a significant chunk of its information technology division elsewhere. In particular, critical cybersecurity operations in order to reduce costs amid a growing scandal over its ability to evaluate and report on suspicious transactions.
It is believed the major financial player is seeking substantial cost reductions from its group-wide cybersecurity division, in what had been viewed to be a change of strategy under new
head Yuval Illuz that has disrupted processes within the bank and led to an increase in staff turnover.
The bank has since called a tender to move employees and functions of its critical cybersecurity defences to an offshore location, India being the possible destination, in what industry sources believe goes against current industry practice. It is also recognised that NAB has its cybersecurity functions in-house, but have also acknowledged the possibility to outsource some of the IT security work.
According to a number of sources, operations and those involved range across a number of functions, from managing security access through to live monitoring of threats both internal and external of the bank, as well as increased staff use of technology.
CBA is highly regarded in its approach to cybersecurity, with big spending to establish industry leadership in digital banking drawing talent to the bank under its previous head Ben Heyes.
“Resources have been tight inside CBA for some time and the agenda has moved towards being reactive rather than proactive” an industry source has quoted. “Given the ongoing threatening landscape and the demands from regulators, banks have a security hole to fill and the question is; do they do it in-house or outsource it”
The outsourcing proposal is understood to cover hundreds of CBA’s IT staff and dozens of the 700-strong cybersecurity division and save tens of millions of dollars.
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