Cybersecurity and financial services - key drivers of change

The cybersecurity landscape for the financial service sector is changing rapidly. Here we explore the key drivers of that evolution As the pace of digi...

Matt High
|May 5|magazine10 min read

The cybersecurity landscape for the financial service sector is changing rapidly. Here we explore the key drivers of that evolution

As the pace of digital disruption accelerates and innovative new technologies reach the market, those in the sector are having to adapt.

They must also place trust at the heart of any cyber agenda. In a recent article in FinTech magazine we explored the future of financial services cybersecurity. 

We found that organisations in the sector are no longer just competing with traditional peers, but rather new startups, digital disruptors and virtual banks. 

Similarly, the pace at which technology is developing is forcing companies to overhaul their IT infrastructure - sometimes drastically. 

Our content was informed by a round-table discussion between KPMG’s cybersecurity practice leaders, titled Securing the Future of Financial Services: Driving Innovation with Confidence.

This was framed around the context that, amidst constant change, leaders are presented with several new challenges when it comes to actively managing customer trust. 

For example, the rise of virtual banks forces greater IT infrastructure transformation on behalf of incumbents in order to maintain a competitive edge - this presents greater security risks.

Similarly, new technologies such as AI or chatbots must be secure and trustworthy; they must also contribute to the user experience. 

For an in-depth analysis of that roundtable, read out full article here

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As part of the discussion, KPMG also outlined its six cyber drivers on the financial services agenda. 

They are:

  1. Threat landscape

Key questions: what am I trying to protect my business and its critical assets from, and how can exposure to cyber threats be continuously monitored? 

  1. Customer trust

Key questions: how can customer expectations on security be managed and do competitors have an advantage if they are further ahead in their cybersecurity journey? 

  1. Cost optimisation

Key questions: what should be the annual spend on cybersecurity and how does that compare with competitors; and is there a best balance between capability investment and maintenance?

  1. Regulation

Key questions: who owns cyber risk on the company’s board and how is compliance with regulation measured and met; have the key metrics for cybersecurity been established and what are they?

  1. Digital security

Key questions: how is cybersecurity factored into a company’s digital strategy, and how are the digital tools integrated and linked to fraud monitoring technology? 

  1. Third party

Key question: can company’s identify which supply chain partners present the highest risk, and how is a comfort level with third party risk built?

 

For more information on all topics for FinTech, please take a look at the latest edition of FinTech magazine.

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