Citigroup's CEO to discuss data security, privacy, emerging technology at hearing

Sep. 20, 2022 5:22 PM ETCitigroup Inc. (C)By: Liz Kiesche, SA News Editor6 Comments

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In her testimony before the House Committee on Financial Services, Citigroup (NYSE:C) CEO Jane Fraser will discuss the importance of data security and privacy as well as emerging technologies, in addition to a number of other topics, according to her prepared remarks.

"With the proliferation of new technologies, the use of mobile and cloud and managed services to conduct financial transactions, a changing geopolitical landscape and the increasing sophistication of threat actors, Citi (C) and other financial institutions have been and will continue to be subject to cyber incidents," she will say.

As a result, the bank uses "a threat-focused, data-driven strategy to protect against, detect, respond to and recover from cyberattacks," according to the testimony, adding that Citi (C) participates in industry, government and cross-sector knowledge-sharing groups to enhance its resilience.

Fraser will also emphasize that the bank doesn't sell personal information and ensures that third parties that it partners with comply with its privacy requirements.

Examples of emerging technologies that will better serve customers include digital wallet investments. "Our partnerships with mature digital wallet providers enable us to streamline and simplify payments across merchants and devices," the CEO is scheduled to say. "Similarly, we leverage artificial intelligence in fraud prevention and for credit-scoring, in support of our responsible and customer-centric approach to decisionmaking."

The company established a Center of Excellence for Artificial Intelligence and Machine Learning (AI/ML) last year to develop best practices and help set standards for AI/MI in its products and services, Fraser will say.

"In the distributed ledger technologies and digital asset space, Citi (C) is focusing resources and efforts to adapt to the fast-evolving environment and the risks and opportunities it brings, including client interest, regulatory developments and technology advancements. We are taking a measured approach based on client demand and under strong governance scrutiny, and only as allowed by our regulators," she will say.

The DLT Center of Excellence it started this year is intended to "drive e appropriate levels of governance, risk management and responsible innovation in any use of DLT and digital assets across the organization," Fraser will say.

Earlier this month, the Wall Street Journal reported that Citi (C) was expected to submit a new plan to ease regulators' concerns about the company's risk management systems.

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