FinTech Magazine June 2024 | Page 73

RED HAT
She continues : “ Banks have to put a torch on all this stuff and actually lift up the bonnet to see what they ’ re working with , and how AI can help drive efficiencies in their existing infrastructures .
“ How it can affect different processes is so important too , like risk . When banks outsource to third , fourth and fifth parties , some may assume they are also outsourcing risk , but what they may not realise is that by doing this , new risks are created .
“ This comes down to having the right expertise and skills to effectively understand the new risks that are created , and banks that don ’ t have this knowledge or understanding become at risk of malicious attacks .
“ Banks can pay for the privilege to ignore the stuff going on inside the box , but that doesn ’ t mean they don ’ t need to know what string is plugged into which box , what software infrastructure is on which box and what small applications from that box are calling to other services .”
It is in this way banks , when leveraging technologies by outsourcing to third parties , must understand their software supply chain , as well as their software bill of materials to ensure that code employed on a bank ’ s code base is verified and malware-free .
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