Newspaper article The Canadian Press

CIBC CEO Heeds Caution on Technology amid Cyberthreats, Bullish on U.S

Newspaper article The Canadian Press

CIBC CEO Heeds Caution on Technology amid Cyberthreats, Bullish on U.S

Article excerpt

CIBC CEO heeds caution on technology amid cyberthreats

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TORONTO - Adopting technology too fast can create more risks amid a growing cybersecurity threat for the financial system as a whole, said the Canadian Imperial Bank Of Commerce's chief executive.

CEO Victor Dodig made the comments Wednesday during a presentation to investors when asked about potential risks as the bank targets between five to 10 per cent earnings growth over the next three years, fuelled by its U.S. business.

"If any particular institution is affected, the entire system gets affected," Dodig said.

"We have to work as a unified voice, and a unified industry to make sure that we are investing for cybersecurity and resilience of the Canadian system... and the U.S. system and the global financial system overall. That's something that we all need to be mindful of," he told investors.

"So as new technologies come in, adopting too fast can create more risks."

His comments come days after Canada's privacy commissioner opened a formal investigation into a large data breach that ride-sharing company Uber publicly disclosed in November that may have impacted 815,000 Canadian riders and drivers. The privacy watchdog continues to probe a data breach earlier this year at credit company Equifax that impacted 145 million Americans and about 19,000 Canadians and, in some cases, included credit card information.

Dodig's concerns also come as Canada's fifth-largest bank was bullish on its earnings growth ahead on the back of the acquisition of Chicago-based PrivateBancorp for roughly US$5 billion in June.

Dodig estimated that its U.S. business would account for 17 per cent of its earnings by 2020. That's up from six per cent in 2015 and nine per cent this year, Dodig added, and in line with CIBC's previously stated target of generating roughly 25 per cent of its earnings south of the border in the long term. …

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