Technology trends

Ensuring Financial Services Security as Technology Trends Transform the Banking Industry

Last year cybersecurity incident reports targeting UK financial services providers has increased by more than half on the previous year and the trend continues this year, at an even faster pace, fueled by global events. Although financial institutions are among the best protected with industry-leading cyber defense and response capabilities, this remains an increasingly significant challenge.

As the financial industry struggles to stay one step ahead of these seemingly ubiquitous bad actors, a trend is emerging. Large institutions regularly seem to do well when it comes to easing their cyber resilience: prepare, detect threats and many even go into cyber-offensive mode using AI and web crawling deep for threats. However, new-age fintech and other smaller entities are looking to bolster their cyber defenses at the basic level – native technology controls and cyber hygiene boosters.

For SMEs in particular, with smaller budgets and fewer resources, this can be quite overwhelming – leaving many business leaders unsure on a relevant question – Where to start? It is important. Our SMEs are
99.9% of the UK’s business force and ensuring that their cyber health is strengthened is of national importance. The reality is that SMBs often underestimate their technology, process and people needs, especially around cybersecurity and data protection – and in the financial services industry, this is more important than ever.

It is therefore becoming alarming that while cybersecurity is an ever-evolving challenge for the financial sector, the means by which companies protect themselves remain largely the same and “assumed”. Additionally, as technology trends evolve, cybersecurity must be central to businesses’ ability to remain resilient. When it comes to adapting business practices – regardless of the size of the organization – trends in the technology sector are essential to consider in order to stay ready for the future.

Three technology trends are transforming the financial industry and will impact cybersecurity.

1. Employee care takes center stage

The banking industry is more people-centric than ever – following a general business trend. Companies are looking for the best talent to work with, to stay as safe as possible. This requires a holistic approach to employee satisfaction, well-being and progress. Happy employees will work with more care and commitment to good cyber hygiene. The same level of professionalism and holistic employee care is sought from external technology partners as it is internally. This ensures the due diligence and cybersecurity awareness needed to ensure business security across the enterprise. The 2022 Cybersecurity Breach Survey found that among organizations that identified a cyberattack, the most common threat vector was phishing (83%). This reinforces the need for a people-centric approach to cyber hygiene.

2. Holistic technology partners are in demand

By working with technology partners who have strong relationships across various industries, companies are able to tailor their own services to suit various needs. By having access to innovation experts in all fields, companies can focus more on the specific needs of their customers and prepare a future-proof banking model. When it comes to cybersecurity, this is particularly important. Cyber ​​strategy must not only consider the sensitivity of financial data, but also the nuances of the vertical markets it serves. Technology partners that have a comprehensive cross-industry view are better positioned to support finance organizations with a broad mission.

3. Hyper-personalized, technology-driven business strategy

The provision of tailored services by technology providers to specific business needs enables them to successfully transform and ultimately deliver winning products that target customer needs. By working with a technology partner who works with businesses at all stages of their digital transformation journey – from identifying challenges to implementing solutions – both parties will be prepared for possible future challenges, while remaining competitive. This is especially true in the financial services sector. As these services become increasingly data-driven and hyper-targeted, cyber strategies must evolve to deal with the resulting complexities. This includes ongoing awareness initiatives to update cyber hygiene practices among employees and customers.

Business, technology and cybersecurity are inextricably linked – you can’t progress in one area without the other. As technology trends drive changes in the financial industry, it is essential to ensure that cybersecurity practices are maintained, regardless of the size of the organization. But with the right technology partner and the provision of people-centric, cross-industry services, they can ensure their progress rests on a solid foundation fit for the future of banking.