‘The biggest trend now is innovation’: Bank of the West on its proactive approach

Transcript

Since the 2008 recession, the US commercial banking sector has faced a dramatic number of changes – particularly in regards to cyber security and regulations. World Finance speaks to Jean-Marc Torre, SEVP and Commercial Banking Group Head at Bank of the West, to find out how his organisation is helping companies navigate the labyrinth of new rules to stay competitive.

World Finance: Now Jean-Marc, you have a number of commercial banking clients; can you tell me about some of the trends you’re seeing among them?
Jean-Marc Torre: The biggest trend now is innovation. Innovation that transforms and sometimes disrupts the business landscape.

The other trend is cyber security. Everybody now recognises that cyber-crime is a very important risk for businesses.

Another trend is probably that companies have to be more capable than ever to deal with uncertainty. Uncertainty with an environment that is changing a lot.

[C]ompanies have to be more capable than ever to deal with uncertainty

And I guess the last thing I’d like to mention is regulation. Regulation has increased, and its impact is now – particularly in the financial sector – a very important aspect.

World Finance: Now, can you tell me how companies are able to stay competitive in the ever-growing, ever-changing global marketplace?
Jean-Marc Torre: Globalisation is not a new thing. But it’s fair to say that now it has different features.

One important feature now is the fact that all companies, because of their investments, their markets, their supply chain; they are international. And again, international is also uncertainties and change. It’s a changing environment.

So, companies have to recognise the change. Sometimes new difficulties, but also have to be quick to grasp opportunities. So I guess they try better to understand the markets, and keep their global view, but at the same time a local understanding. And this is where new challenges, as much as new opportunities, can be identified.

This dialogue, this understanding we have of the complexity of the world our customers have to operate in, is I think, critical. As much as it is for them to make sure that they have a strong support and understanding of the various countries and markets they are in.

World Finance: Now cyber-crime of course is a present issue in the marketplace; can you tell me how companies are addressing it?
Jean-Marc Torre: To address cyber-crime is the same as to address the international uncertainty. Some studies show that cyber-crime costs to business are about to $444bn, which is almost one percent of global revenues.

And not only is it big, but it’s increasing. I think the increase last year is estimated at 18 percent over the year before. So not only is cyber-crime increasing in intensity, but it’s also more innovative and more diversified in the type of tactics and techniques they use.

So, to prepare for that, you need to look at partnerships. And banks in that instance, and Bank of the West in particular, is trying to support our customers that way.

One way to do it is to talk to customers, to make sure that they understand, and we understand, what are the risks. And the impact on their processes in the data.

[Our clients] appreciate the fact that we take that seriously, and look at that in partnership

It’s also a matter of training. You have cyber-crime techniques such as social engineering: to withstand this kind of attack, you have to have control and protection of data, but also training of your people.

What we do is keep an open communication with law enforcement, in order to be aware of new risks. Communication and cooperation with all players is very important.

Obviously investing in keeping our tools and our systems and our products up to date is important, and we provide of course a wide range of fraud prevention tools. Lastly, if and when some cyber-attack happens and hits, we also try and work on mitigating the impact of it.

World Finance: Can you tell me about how your clients are reacting once these tools have been put in place?
Jean-Marc Torre: They appreciate the fact that we take that seriously, and look at that in partnership.

I think it’s critical to understand, and I think customers appreciate it, that it’s by being together, and looking at things end-to-end, that we are stronger. And as much as we can protect ourselves, finding ways where we are together in this partnership with our customers both stronger, is something which is critical.

I think customers are sensitive to the fact that our goal is to keep our customers financially viable, but also strong, and in the long run.

World Finance: Well many exciting developments; Jean-Marc, thank you for joining me today.
Jean-Marc Torre: Thank you.