Questions and Answers From the Top
A conversation with Magnus Jonsson
- By Security Products Staff
- Jan 24, 2007
BANKS and larger
financial institutions are interested in making the most of the newest
security technologies and analytical software solutions to better
protect assets, employees and customers. There is a wealth of new and
exciting products on the market today, but will these products solve
the security challenges of the banking industry? We took a few minutes
to visit with Pacom CEO Magnus Jonsson to answer this and several other
questions.
There is a wealth of new and exciting products on the market today, but will
these products solve the security challenges of the banking industry?
Q. Banks seem to have quickly migrated from simple alarm systems
to more sophisticated integrated security solutions. What is driving
this transition?
A. I think everything starts out as a cost savings exercise.
IT professionals are always looking for ways to get the most out of
their IP systems and to better use their investment in infrastructure
and shared services. The migration from dial-up panels to IP not only
reduces cost, but it also opens up an array of new and exciting
features. Technology is an enabler, and security directors are just now
beginning to realize how it can be leveraged to solve security and
network challenges in the banking industry. Solutions for the financial
industry is probably the most fashionable and misused sentence in the
security marketplace. It seems that every manufacturer is trying to
convince the market that it has specifically designed a black box to
suit the exact requirements of that customer. When in reality, that
same black box is presented as the ideal solution for government,
residential, commercial (small and large), educational and
transportation. This is what different industries need to be aware of
and watch out for.
Q. What do you see as the No. 1 security challenge for banks?
A. I recently read banks lose more money in one month due to
identity and account fraud than the companies spend annually on
security systems. I don't know if that is true or not, but it does put
the scope of the problem in some type of perspective. The challenge of
immediately authenticating millions of customers in cyberspace, or in
front of a crowded ATM is a growing concern for the banking industry.
Our job as a security product manufacturer is a bit more focused on
creating advanced security solutions that protect people and assets in
branches or remote locations all over the world. Technology gives us
the means to remote manage alarm, access control and video surveillance
functions from a centralized monitoring station. This creates cost
savings for the bank and allows for better use of technology. The
challenge of selecting the best security products and systems is not
easy. Security directors have to not only be concerned with fixing
today's problems, but they also must be willing to invest in products
and solutions that can continue to expand and meet future growth
demands.
Q. What are product manufacturing companies like Pacom Systems
doing to meet the growing demand for more intelligent products and
services?
A. Intelligence and analytics in security systems is a bit of
a double-edged sword. The more complex we make our systems, the harder
it will be to find integrators or in-house technical administrators who
can install, maintain and operate the systems. It has become an
industry-wide challenge and it's only going to get worse as more
intelligent systems are introduced. Good technicians that are IT savvy
can find more exciting career opportunities than installing a security
system, so as we train these folks, we also lose them to better
opportunities. However, as a security product manufacturer, Pacom must
continue to introduce new ways to expand our open architecture for
third-party development of business-critical applications. We also have
a whole range of new tools and products on the horizon that will
dramatically increase the possibility of optimal fit-and-forget
installation.
Many manufacturers of security products develop systems for minimum
requirements to reduce cost rather than building a platform for future
expansion and increased capabilities. Pacom has a different approach in
that we would rather build the product with as much future-proof design
in mind as possible, even if it means a lower margin. Our experience
allows us to assume customers eventually will want to, for example,
upgrade firmware remotely to a dual-flash ROM, and they will need to be
able to switch between two firmware versions remotely without the risk
of compromised security at the site. Our systems are designed to
accommodate that type of future applications.
Q. Since you took over as CEO of Pacom Systems in February 2006,
what changes have you made to better address the growing market
opportunity?
A. One thing is for certain, the security industry continues
to change, and new product and solutions surface daily. Our mission is
and has always been to create the best products and solutions in the
market. Pacom Systems has a long and respected history in the financial
marketplace. We have made this our main focus, along with the retail
industry, because that is where our products and services add the
greatest value. We also will continue to work closely with end users
and system integrators to understand their challenges and make sure we
are planning far enough ahead to offer real solutions to those
challenges. Pacom also will continue to seek out and partner with
best-of-breed technology manufacturers to ensure that our products
deliver the communications, remote management and redundancy functions
customers want.
Q. Since Pacom is a global company, do you see any differences in
what banks from other parts of the world want in the way of security
versus what U.S. banks want?
A. All bank security interests are fairly equal. Banks want
security solutions that protect assets, people and customers. The
technologies deployed may differ from location to location, but it
shares the same goal. The maturity of technology deployment is a little
more advanced in the United States and Scandinavia. However, other
parts of the world are catching up fast because of global businesses
connections.
Q. Share your perspective on the future of open systems versus closed or priority systems for the banking industry?
A. The fundamental issue is not just to demand open systems.
The issue really is the entire industry needs to be working together to
create the best solutions possible that can easily be integrated to
handle the needs of any specific security challenge. End users and
consultants want to work with companies that are forward thinking
enough to ensure the products have some expected shelf life and can
offer some level of connectivity with evolving technologies. It's
astonishing how rare it is in the security industry that companies
actually work to develop something new rather than just try to reinvent
the wheel using the same protocols and procedures from the IT industry.
I guess it is more important for the companies to say its products have
the ability to communicate over TCP/IP rather than actually trying to
comply with best practice and expertise in the IT space.
This article originally appeared in the January 2007 issue of Security Products, pg. 64.